Ryanair shares down despite growing passenger numbers
DISCOUNT carrier Ryanair revealed a boosted earnings outlook yet again yesterday, with profits expected to reach €840m-€850m (£630m-£638m) during the 12 months to 31 March 2015.
This is up from the €810m-€830m forecast issued less than two months ago on 4 December.
The company also posted a €49m net profit for the three months to 31 December, exceeding third quarter expectations of €28m.
It said the improved outlook was due to greater passenger volume this year compared to the equivalent period in 2013-2014, and also lower fuel costs.
As a result, Ryanair is launching a buyback programme of €400m shares, to be completed between now and August this year.
The news failed to impress investors, however, with shares diving to a closing price of €9.78 per share, a 6.01 per cent fall.
The airline said investors should remain cautious because fuel price is hedged at $92 per barrel, whereas many of its competitors would be “significant beneficiaries” of lower oil costs.”