Ryanair’s £770m ‘bumper summer’

A SUMMER holiday surge helped Ryanair post first-half profits nearly 40pc higher at £770m, writes Laura Chesters.

The Irish budget airline said its ‘bumper summer’ had meant fuller planes, with a 13pc rise in passengers to 58m in the six months to the end of September.

July was particularly strong with more than 10m passengers travelling. The strong period meant the airline raised its profit forecast for the year.

Chief executive Michael O’Leary said: ‘We have enjoyed a bumper summer due to a very rare confluence of favourable events including stronger sterling, adverse weather in northern Europe, reasonably flat industry capacity and further savings on our unhedged fuel.’

Profits are expected to be between £839m and £875m.

O’Leary said if Rynair enjoys a strong Easter this could send earnings even higher.

He also promised that travellers may benefit from a price war between the airlines.

The falling fuel prices, due to the weak price of oil, will mean Ryanair can reduce prices further ‘for the next 12-18 months,’ O’Leary said. He said he would be disappointed if there was not a price war.

Rival EasyJet, which celebrates its 20th birthday next week, has also seen a strong period.

Analysts at Barclays said: ‘We believe Ryanair may be able to further surprise on the upside on loads.’

EasyJet shares slipped 37p to 1713p while Ryanair dipped nearly 3.5pc to €13.96.