Ryanair, 32% profit increase in H1, 2014

Ryanair, 32% profit increase in H1, 2014

 Ryanair today announced that H1 Net Profit rose by 32% to €795m. Traffic grew 4% to 51.3m customers, ave. fares increased 5%, and total revenues rose by 9% to €3,537m. Unit costs fell by 2% (excluding fuel they rose by 3%).

H1 load factors jumped by 4% points to 89%, due to a stronger Easter period and the success of Ryanair’s “Always Getting Better” customer experience improvements.

- 4 new bases and 57 new routes opened.

- Improved website and mobile app rolled out.

- “Always Getting Better” customer experience improving.

- “Family Extra” and “Business Plus” products launched.

- €850m 7yr Euro bond issued @ 1.875%.

- €520m special dividend in Feb 2015 approved.

- Launch order for 200 Boeing 737-MAX “Gamechanger” aircraft (sub. to EGM approval).

- Revised growth plan to double to 150m p.a. customers by 2024.

In September, Ryanair celebrated 2 milestone events with Boeing. We took delivery of the 1st of 180 new Boeing 737-800 NG aircraft in Seattle. These new aircraft will enable Ryanair to deliver strong traffic and profit growth over the coming 5 years as we grow to over 114m passenger’s p.a. These new aircraft will allow us exploit the unfolding opportunities at many primary and secondary airports across Europe who are encouraging Ryanair to grow quickly at their airports as their incumbent carriers cut capacity.

Ryanair's September AGM approved the Board’s proposal to return another €520m via a special dividend (€0.375 per ordinary share). This will be paid at the end of February 2015, at a time when our cash balances are rising. This will bring to over €2.5bn the returns made by Ryanair to shareholders since 2008. Ryanair’s balance sheet remains one of the strongest in the industry. Despite €293m of Capex and debt repayments of €199m during H1, our Net Cash position has improved from €158m to €618m reflecting our profitable H1 trading. 

Based on these solid H1 results, underpinned by strong forward bookings and rising load factors, we have significantly raised our winter capacity and traffic growth objectives. Traffic will grow by 12% in Q3 and by 20% in Q4, which are very ambitious targets during the weaker half of the year. However, we believe it is time to capitalise upon the many opportunities available to us at both primary and secondary airports, to grow our route network and increase frequencies, in order to attract business traffic which tends to travel more during the winter period.

As a result of these 2.2m additional H2 passengers and falling unit costs, our full year net profit will significantly exceed our previous guidance (of €650m) to a new range of between €750m to €770m. However, we caution that this raised guidance remains heavily reliant on the strength of close in bookings for the remainder of Q3, and in particular Q4 where we presently have very little visibility.

Source and image: Ryanair