Finance, Markets

Ryanair Holdings plc (NASDAQ:RYAAY) announced upbeat results as it predicts drop in fares

The Dublin-based Ryanair Holdings plc (ADR)(NASDAQ:RYAAY) Tuesday announced a 6% increase in net profit for the last fiscal year after Britain’s verdict to exit the European Union and terrorist attacks weighed on earnings, and the airline said growth this year would advance as least as much amid stronger bookings.

The airline reported a EUR1.32 billion or $1.47 billion net profit for the financial year ended March 31 against a target range of EUR1.3 billion to EUR1.35 billion. Sales last year increased 2% to EUR6.65 billion as the airline carried 120 million passengers.

In the meantime Ryanair Holdings plc (ADR)(NASDAQ:RYAAY) also started a EUR600 million share buyback to be accomplished by the end of October, having completed a EUR1 billion stock-repurchase round in February. The air carrier said it has paid back EUR5.4 billion to investors since 2008 through a series of buybacks and special dividends.

Furthermore Europe’s largest airline by passenger numbers also revealed its profit would surge this year and reach EUR1.4 billion to EUR1.45 billion. Ryanair usually starts the year with conformist profit forecasts. It said much of the rise in profit should come from a projected EUR70 million drop in fuel costs. The carrier also predicts to carry 130 million passengers by the end of March 2018.

Ryanair also said in a statement that bookings for the six months to Sept. 30 are in advance of last year, though the crash of the British currency after the Brexit vote is expected to lead to a 5% to 7% drop in average ticket prices for the full financial year. The company makes more than a quarter of its sales in sterling. Fares dropped 13% in the prior financial year.

Moreover Ryanair Holdings (RYAAY) has delivered strong earnings growth in recent years by swiftly growing while keeping low costs. Nonfuel unit costs are likely to drop 1% this year.

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