Summer demand lifts Ryanair profit

Fares that rose 1% in the quarter set to fall 5% over the first half and 8% in the second

Ryanair Holdings Plc reported a 55 per cent gain in first-quarter profit as strong summer bookings swelled revenues, while cautioning that pricing will be “very competitive” through the remainder of its fiscal year as overcapacity crimps fares.

Net income jumped to €397 million ($463 million) in the three months ended June 30 from €256 million a year earlier, aided by a later Easter, Europe’s biggest low-cost airline said yesterday. Analysts had been expecting a figure of €342 million, on average.

Fiscal 2018 earnings will be in the region of €1.4 billion to €1.45 billion, in line with a previous forecast and up from €1.32 billion a year earlier, Ryanair said. At the same time, fares that rose 1 per cent in the quarter are set to fall 5 per cent over the first half and 8 per cent in the second.

Ryanair has made an offer for Alitalia SpA, the highestprofile casualty of Europe’s capacity splurge and fare war, Sorahan said. The Irish company has a “genuine interest” in the Italian flag carrier.