Ryanair posted a forecast-beating jump in first-half profit after its low fares drew passengers over the summer, and was more upbeat than previously over prospects for the rest of the year.
Net income grew 18 per cent to €200.1 in the six months to the end of September from €168.9 million in the same period a year earlier, Ryanair said this morning.
Passenger numbers grew by 24 per cent to 14.1 million.
The median of eight forecasts from analysts surveyed by Reuters last week put Ryanair's net income at €187.6 million for the period, of which €135 million was expected for the quarter to September 30th. Net income was instead €147.6 million in that quarter.
"When all is said and done, there is a lot more positive tone in there than perhaps we would have expected," said analyst Mr Shane Matthews of NCB Stockbrokers, who said he would maintain a "buy" recommendation on the stock.
Ryanair said it did not plan to change its policy of remaining unhedged against fluctuating fuel prices until they return to "normal" and that $50 a barrel for Brent crude over the rest of the year would add about €55 million to its total budgeted costs.
But it said it was benefiting from fuel surcharging policies at its competitors, which encouraged passengers to use Ryanair.
Ryanair revised its forecast for yields - income per passenger - to a decline of 5 to 10 per cent in the second half of its year from a previous estimate of a 10 to 20 per cent decline.
Yields declined by 5 per cent in the first half of the year, towards the better end of Ryanair's guidance.
"We attribute this to a combination of slightly better peak summer yields and the initial impact of the fuel price surcharges imposed by many of our high fare competitors," Ryanair said in a statement.
The results were released before the stock market opened.