One of the world’s most competitive budget airlines, Europe’s Ryanair, reported better than expected profits today. The Dublin-based airline which made a name for itself with cost cutting, is now a favorite with travelers needing to do the same.
On the news, Ryanair said net profit April to September jumped some 10%, while sales increased a whopping 15% to €3.11 billion euro. Fares were up too, but the big news is Ryanair will now raise its full-year profit guidance to €520 million euro, or roughly 20% more than forecast. Accordingly, Ryanair share prices were up 7% on the news too.
CEO Michael O’Leary offered this, speaking about the plight of airlines during this downtown:
“Further airline failures and consolidations are inevitable given the fragmentation among European airlines and the existence of so many high-cost, high-fare airlines with poor punctuality records. In this environment Ryanair sees substantial opportunities to grow.”
For Ryanair’s part, the airline has caused many competitors headaches with their business model. Nearly every European carrier has in one way or another been forced into “adjustments” of some kind to cope. O’Leary’s company, particularly with this news, seems in the driver’s seat where their path is concerned.