Posted on: 25 July 2011 by Ross McSweeny
Ryanair has announced a 1Q net profit of €139 million for its 2011-12 fiscal year (FY12), a slight increase of 1% on the same quarter last year.
Revenues grew by 29% to €1,155 million as traffic increased 18% and average fares rose 11%. Unit costs rose by 14% due to a 49% increase in fuel costs. Excluding fuel, sector length adjusted unit costs fell by 1%.
Announcing these results Ryanair’s CEO, Michael O’Leary, commented, “Traffic growth in this quarter was flattered by the unnecessary airspace closures in April/May 2010 (following the Icelandic volcanic eruptions) which led to the cancellation of 9,400 flights, and the loss of almost 1.5 million passengers. Our 18% traffic growth combined with an 11% rise in average fares led to a 29% increase in revenues. Significantly higher revenues were largely offset by higher operating costs as fuel rose 49% (by €140 million), to €427 million. Despite substantially higher fuel costs we recorded a profit after tax of €139 million, up on Q1 last year.
“This robust result is testimony to the strength of Ryanair’s lowest fares/lowest cost model which continues to deliver profit and traffic growth despite the recession and high oil prices.
“Fuel prices remain stubbornly high as spot is trading at $118 per barrel,” O’Leary continued. “We are 90% hedged for FY12 at $860 per tonne (approximately $86 per barrel), an 18% price increase on last year, but significantly below current prices.”