Ryanair's H1 profit and revenue up, lifts traffic forecast

Ryanair reported a rise in first-half profit as revenue and customer numbers grew despite difficult market conditions, and the budget airline upped its long-term traffic forecast.

First-half profit after tax rose 7% from the same period a year ago to €1.17bn on revenue of €4.13bn, up 2%. The company said customer numbers grew 12% to 64.8m, while average fares fell 10% to €50.

Chief executive officer Michael O’Leary said: "We are pleased to report this 7% increase in H1 profits, which was a creditable performance in difficult market conditions due to repeated ATC strikes, terror events, and the adverse economic impact of the Brexit vote in June which saw sterling weaken materially over the peak summer period.

“We responded by accelerating our Always Getting Better ("AGB") customer experience programme, and using our lower costs base to stimulate stronger forward bookings with lower fares.”

Looking forward, the group said it remains cautious on the outlook for full-year 2017, as it expects weaker air fares and Brexit uncertainty to be dominant features of the second half.

Still, having hedged both its fuel and sterling exposures, it remains comfortable with its revised full-year guidance of €1.30bn to €1.35bn of net profit, although it added that this is heavily dependent on there being no unexpected adverse declines in fourth-quarter airfares.

Ryanair lifted its long-term traffic forecast by over 10% to more than 200m customers per annum by March 2024.

“Despite the uncertainty of Brexit, Ryanair believes that we can deliver profitable growth across Europe by controlling costs, lowering airfares, and maximising load factors in a manner that will most benefit our customers, our people and our shareholders."

Also on Monday, the company said its board has authorised a further share buyback of up to €550m over the four-month month period from November 2016 to February 2017.