Budget airline Ryanair have announced that it will hit its annual profit target, despite falling ticket prices and the impact of terrorism threats on passenger numbers.
Ryanar expects fares to fall 6 percent this quarter, an upwards revision from 4 percent..However, net profits for the last three months of 2015 doubled year on year to €103 million, leading the company to maintain its profit forecast for the full year.
The company was one of many in the travel industry to be hit by a fall in passengers after the Paris attacks, forcing fares to be lowered 1 percent in order to sell seats. This, and the drop of 6 percent heading into 2016, has been offset by a fall in oil prices, which have led to Ryanair’s costs to fall by 5 percent in the last quarter of 2015.
In a statement, Chief Executive Michael O’Leary said that he expects “the lower fare environment to continue for the foreseeable future.” Last year, Ryanair became the first airline in the world to carry 100 million international passengers.
Shares in Ryanair (LON:RYA) are trading up 2.98 percent on the news, at 14.16 per share (0946GMT).
01/02/2016
