By Conor Humphries
DUBLIN (Reuters) -Ryanair’s net profit more than doubled in its April-June quarter on higher-than-expected last-minute fares and the timing of the Easter holidays, while bookings for rest of the summer are “robust”, Europe’s largest low-cost carrier said on Monday.
The Irish airline, Europe’s largest by passenger numbers, said it was not seeing a negative trend of later-than-normal bookings reported by some rivals.
“Across the piece, bookings are good,” Chief Financial Officer Neil Sorahan said, describing consumer confidence as “very strong.”
Shares in the airline were up 6.5% at 24.58 euros at 0725 GMT, just below the all-time high of 24.98 recorded on July 8.
Ryanair reported a net profit of 820 million euros ($953 million) for its first quarter, which ended on June 30, up from 360 million euros in the same period last year when Easter was in March – and up from 663 million in the same period of 2023, the last time Easter was in April.
A Ryanair poll of analysts had expected 716 million euros.
Average fares rose 21% in the quarter, more than recovering the 15% fall recorded in the period last year.
In the July-September quarter, when European airlines make most of their profit, Ryanair expects to recover “almost all” of the 7% fare decline seen last year, when it was hit by weak consumer sentiment and a dispute with some online travel agents.
In June, Ryanair forecast that “some of” the 7% would be recovered.
Asked about recent commentary from British low-cost rivals EasyJet and Jet2 that customers were booking later, Sorahan said: “We’re not seeing those kind of trends at all.”
Rivals are likely seeing a negative impact from the resolution of Ryanair’s dispute with online travel agents, he said.
Ryanair’s profit for the year depends heavily on the strength of close-in bookings in August and September, but O’Leary said the rebound in fares should lead to “reasonable net profit growth” for the year to March 31.
As Boeing’s largest customer in Europe, Ryanair is particularly exposed to the possible imposition of tariffs on commercial aircraft, but said it was hopeful that an exemption for commercial aircraft could be agreed by the United States and European Union.
“We’re all hopeful and maybe a little confident that something might get done,” CFO Sorahan said.
($1 = 0.8603 euros)
(Writing by Conor Humphries; Editing by Janane Venkatraman, Kirsten Donovan)
