Source: Sharecast
Profit after tax soared to €820m in the three months to June 30 from €360m a year ago, on a 20% jump in revenue to €4.34bn. A company-compiled poll of analysts had forecast earnings of £716m.
Passenger traffic rose 4% to almost 58 million and average fares were up 21% due to Easter timings this year, said chief executive Michael O'Leary. Shares in the airline were up almost 6%.
Ryanair “cautiously expects to recover almost all of last year’s 7% full-year fare decline, which should lead to reasonable net profit growth” in the full year, but warned that passenger growth would be constrained over the full year due to “heavily delayed Boeing deliveries”.
AJ Bell investment director Russ Mould said it was important to note that the numbers were "flattered by the timing of Easter and weak prior-year comparatives, and the company lacks full visibility on the current quarter".
“The better-than-expected increase in average fares is particularly striking, as is the fact the company now seems to think it can recover nearly all of the decline in fares in the last financial year."
O'Leary also revealed the airline was considering raising a bonus paid to staff for identifying passengers’ oversized luggage. It currently pays staff around €1.50 for intercepting bags that are too big for the cabin.
The bonus is capped at about €80 for each staff member a month, according to a Sunday Times report on the weekend, citing a payslip from a former employee which listed a “gate bag bonus”. Passengers are charged up to €75 as a penalty for attempting to load luggage larger than they paid for at the time of booking.
“We are happy to incentivise our [staff] with a share of those excess baggage fees, which we think will decline over the coming year or two. It is about €1.50 per bag – and we’re thinking of increasing it, so we eliminate it.”
Reporting by Frank Prenesti for Sharecast.com