Ryanair profit disappoints

Ryanair’s share fell after its quarterly net profit came in below expectations because of a hefty fuel bill due to higher prices and increased activity.
 
Europe’s largest low-cost airline failed to impress  investors with an upgrade to its forecast for earnings for the full year.
 
The Irish airline’s net profit for the latest quarter rose 25 percent to 313 million euros.
 
Ryanair said it expected full-year net earnings to rise about eight percent from a previous guidance of 350 million to 375 million euros as yields improve on the back of more profitable, longer routes.
 
Ryanair has exploited the recession to expand at the expense of higher-cost rivals in Europe.
 
Chief Executive Michael O’Leary said he was talking to airports across the continent about opening new routes.
 
O’Leary added the only airports not on his list for increased capacity were in Ireland and the UK’s Stansted Airport, which he has criticised for having a high cost base.
 
The rosier outlook follows raised earnings expectations across the sector with leading flag carriers Lufthansa and Air France-KLM last week citing improving revenues and increased bookings.

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