Ryanair Q1 profits below expectations on high fuel

The Irish airline, which operates more than 1,500 flights a day, said it expects average income yields to rise by 12 to 15 per cent in its second quarter ending in September, but warned traffic would fall 4 per cent in the next winter season as high fuel costs will force the airline to ground flights.

Revenues in the three months to June grew 29 per cent to 1.16bn euros, meeting market expectations. But net profit was 139m euros, well short of the 151m euros forecast by analysts.

Ryanair maintained its profit forecast for the year of 400m euros.

The carrier will grow its number of passengers at Leeds Bradford airport to one million this year, chief executive Michael O’Leary said in May, when he also revealed he was in talks to add more routes to the base.

Ryanair shares closed on Friday at 3.47 euros, up 3.2 per cent since its 2011 results were announced on May 23.

Ryanair said it was 90 per cent hedged on fuel at $860 per tonne.