Ryanair has reported a 1% rise in profits for the three months to June 29. The Irish low-cost carrier made a profit of €139 million, which was below forecasts of €151 million. Revenues rose 29% to €1.16 million and the airline maintained its forecast for flat profits of €400 million this year.
Shares in the carrier dropped 2% on this news and the announcement that Ryanair expects operating costs per passenger for the full year to rise by 13% due to higher oil prices. Average income yield is expected to rise by 12% to 15% in the quarter ending in September, but traffic is expected to fall 4% over the winter season as high fuel costs means the airline will be forced to ground flights.
Ryanair is 90% hedged at $86 a barrel for this year; although this is 18% higher than 2010 prices, it is below current prices.