First Free Story (1 of 3)Join Skift Pro
Ryanair Holdings Plc predicted it will reach the upper end of its earnings projection this fiscal year as it expects to transport more passengers and an overhaul aimed at attracting more business-minded clients takes hold.
Profit for the full year will be at the upper end of a guidance of 620 million euros ($788 million) to 650 million euros, Ryanair said today in a statement at its annual general meeting. The outlook depends “heavily” on yields in the second half, according to the company, which is Europe’s largest discount airline. Ryanair rose as much as 4.2 percent in Dublin.
More on Europe’s Low-Cost Carriers
- Why Low-Cost Carriers Are Still Making the Aviation Industry Nervous
- 3 Failing Strategies Behind European Legacy Airlines’ Battle With Ryanair
The company predicted traffic will rise to 87 million customers this year, compared with a previous guidance of 86 million. The airline signed an order for as many as 200 additional Boeing Co. 737 single-aisle aircraft this month as it pushes expansion in Europe, benefiting from the woes of established legacy carriers including Deutsche Lufthansa AG and Air France-KLM Group, which are struggling to make money on shorter routes.
Ryanair rose as much as 30 cents, or 4.2 percent, to 7.6 euros in Dublin, and traded at 7.5 euros as of 9:12 a.m. The stock has gained 19 percent this year, outperforming smaller rival Easyjet Plc, which has lost 13 percent in 2014.
To contact the reporters on this story: Benedikt Kammel in Berlin at firstname.lastname@example.org; Dara Doyle in Dublin at email@example.com. To contact the editor responsible for this story: Benedikt Kammel at firstname.lastname@example.org.