Ryanair Cautious Despite Record Profits
Ryanair has today reported record first-quarter profits but also warned of the possible impact on its business of any further terrorist attacks in London. The budget airline said bookings were down for a number of days in the immediate aftermath of the deadly attacks on July 7 and of the failed bombings on July 21.
Michael O’Leary, the chief executive, has said: “If there are no further such attacks in London we expect that our forward bookings will not be materially impacted upon.” However, he warned that both bookings and yields could be adversely affected if there were further incidents.
Ryanair reported record first-quarter profits capitalising on fuel surcharges imposed by rivals. Net profits rose 21% to €64.4m (£44.3m) for the three months to the end of June. The Irish carrier benefited from increased passenger numbers, up by almost one-third on a year earlier, to 8.5 million. Ryanair has opted not to introduce a fuel surcharge, despite higher oil prices and their price increases are minimal compared to other carriers.
Ryanair remains cautious about the rest of the year and kept its full-year forecast unchanged.