Ryanair share price rises as profits hit €1bn
Bookings between January and April up 1 per cent from this time last year
The Ryanair share price has risen 6.27 per cent following “stronger than expected” Christmas and New Year bookings.
The budget airline’s stock rose to €16.18 ($18, £13.7) after it announced that its full-year profits are expected to increase from a €800m-to-€900m range to between €950m and €1.05bn.
According to Ryanair's trading statement, bookings between January and April are up 1 per cent from this time last year.
“On the basis of current trading, Ryanair expects to finish close to the mid-point of this new range,” the airline said. It also predicts traffic will grow to 154m passengers, compared to its previous forecast of 153m.
Its increase in trading also boosted rivals' stock prices, with Easyjet’s share price jumping as much as 5.3 per cent to 1,515p, while British Airways owner IAG rose 3.4 per cent to 656.4p.
Despite the good news, Ryanair revealed its Austrian subsidiary Laudamotion “continues to underperform”, with net losses up from €80m to €90m.
“This is a direct result of intense price competition with Lufthansa subsidiaries in both Germany and Austria who are engaged in below-cost selling,” Ryanair told investors.
Laudamotion expects to carry 6.5m passengers in the year to March 2020, but average fares are €15 below budget.
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