Bookings surge boosts Ryanair outlook

Budget airline Ryanair said a rush of bookings at higher prices in the last month would boost annual profits by at least 25m euros (£22m).

The Irish carrier, which launched services from Leeds Bradford airport last month, refused to directly acknowledge the impact of the British Airways strikes but is emerging as a winner as travellers make alternative arrangements.

Ryanair has leased BA three aircraft in the past month as well as introducing "rescue fares" for those stranded by industrial action.

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The firm said annual profits – covering the year to March 31 – would be at least 310m euros (274.5m) compared with previous guidance of 275m euros (243.5m).

The airline said this was "as a result of somewhat stronger than expected passenger bookings, at better-than-expected yields, during late February and March in the run up to the Easter holiday weekend".

The reversal of fortunes for Ryanair comes after it posted a 169.2m euro (145.9m) loss in the previous year after being hit with a 59 per cent hike in its fuel bill due to surging oil prices.

Yesterday's announcement is the second profits upgrade in two months for the firm after lower-than-expected losses in the quarter to December 31.

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A long-running dispute between BA and the Unite trade union has culminated in seven days of strikes in the past fortnight. The second four-day strike finished on Tuesday.

BA, which is set to post a second successive year of losses, has estimated that the daily cost of the first strike was around 7m and put the bill for the second action 5.5A.