PRIORITIES

Low-cost carrier Ryanair has posted a jump in first-quarter profits, but again warned that Brexit could cause it to ground flights and cancel holidays unless a deal with the EU is struck.

The airline yesterday posted a 13 per cent rise in revenue to €1.9 billion (£1.7bn) in the three months to the end of June, while profits soared 55 per cent to €397 million.

Ryanair was boosted by the timing of Easter, and saw a 12 per cent rise in passenger numbers to 35 million.

Average fares rose 1 per cent in the period, but it expects fares to fall by 5 per cent in the first six months of the year and by 8 per cent in the second amid tough competition in the sector and as Ryanair passes on lower fuel costs.

“We expect the pricing environment to remain very competitive,” boss Michael O’leary said.

He told investors: “While first-quarter average fares rose by 1 per cent to just over €40, this was due to a strong April (boosted by Easter) offset by adverse sterling, lower bag revenue as more cus-

0 The low-cost Irish carrier was given a lift by the timing of Easter

NEIL SORAHAN, CFO tomers switch to our two free carry-on bag policy, and yield stimulation following a series of security events in Manchester and London.”

Ryanair’s chief financial officer Neil Sorahan insisted the airline is “never that worried per se about fares”.

He told a London press conference: “We’re what we call load active yield passive, which means we’ll always hit the passenger target and the market more or less dictates what they’re going to pay for those seats.”

By maximising passenger numbers the airline can achieve discounts in airport fees, spread its fixed costs among more customers and sell more ancillary products such as on-board drinks, car hire and accommodation, Sorahan said.

He added: “We will happily trade away fares to drive the other elements of the business and as you can see we’re growing quite profitably.”

However, the group again sounded the alarm bell on Britain’s divorce from the EU

“We will happily trade away fares to drive the other elements of the business and as you can see we’re growing quite profitably”