Ryanair, the world’s largest airline by international passenger numbers, raised its full-year profit target by 10% to EUR440 million, as higher yields are expected to offset stubbornly high fuel prices. The carrier reported a 20% increase in adjusted profit after tax in 1HFY2012 (six months ended Sep-2011), bucking the industry trend, and amid strong performance in passenger, yields and top line revenue (including ancillary) growth.
Ryanair CEO Michael O’Leary stated the carrier expects 2HFY2012 yields to increase by 14%, more than the previously forecast 12% growth. Supporting the anticipated yield improvement, capacity will be reduced by 4% in the second half to safeguard profitability over the low season amid stubbornly high fuel costs. The decision is expected to result in a 10% reduction in passenger numbers, equating to a reduction of 500,0000 passengers in Nov-2011, as up to 80 aircraft are grounded. "Grounding 80 aircraft means we can hang on to higher fares," Mr O’Leary said.