No-frills airline Ryanair beat forecasts with an 18 per cent jump in half-year profit after a strong summer and cheered investors yesterday with a surprisingly upbeat take on the full year.
Net income grew 18 per cent to €200.1 million in the six months to the end of September from €168.9 million a year earlier, the Irish carrier said.
Analysts had expected a net profit of €187.6 million, the median of eight forecasts in a poll by Reuters last week. For the quarter, a net of €147.6 million topped the €135 million forecast by analysts. Chief Executive Michael O'Leary told Reuters he expected a net profit of more than €200 million for the full year, better than many analysts had expected, even taking into account slower business over the winter months.
"We think they will come in above €200 million," he said. When asked how much above that level, he said: "Not a lot".
Fuel at $55 a barrel would limit Ryanair's full-year net profit to a little over €200 million while the carrier could achieve a net of as much as €250 million if oil prices ease, Mr O'Leary said. He did not provide a per-barrel price for hitting that target, but said the company would be profitable even if oil shot to $70 a barrel.
The shares surged on the earnings news, gaining more than 11 per cent. At 1129 GMT, they were up 10.2 per cent at €4.44. Brokerages UBS and London's Cazenove & Co both said their ratings and price targets for Ryanair were under review following the results.