Ryanair Share Prices Up As Full-Year Outlook Raised
Europe’s largest discount airline, Ryanair Holdings PLC, saw its stocks rise 4% after it revealed it has more than doubled Q1 earnings. Furthermore, the company also raised its full-year profit projection.The airline posted results for the three months through June 30 and showed a massive 152% net profit increase on an annual basis at €197 million. Revenue was also up 11% to €1.496 billion and the number of passengers increased by 4%.
CEO Michael O’Leary said, “The earlier launch of our summer schedule and actively raising our forward bookings has delivered a 4% increase in load factor to 86% and enabled us to better manage close-in yields”.
The airline has now raised its full-year profit forecast from €580-€620 million to €620-€650 million.
Ryanair is now expecting traffic growth of 3% in the first half, ending September 30, and fares to increase by 6%. The company also said that it hopes to “aggressively” expand its capacity by 8% over the coming winter.
As part of its commitment to return €1 billion to shareholders, Ryanair is also planning to pay a €520 million dividend. The company has already purchased back €482 million worth of shares.
In a recent report, 22 analysts offering 12 month price targets for the company had a median target of €8, with a high estimate of €9.90 and a low of €7. This median represents a 16.87% increase from the last price of €6.85.