Ryanair profits look to take off with pre-tax profit expected to reach £1.13billion
Ryanair is expected to hit fullyear profit targets when it reports to the market today after having benefited from a higher-than-expected drop in unit costs.
Ryanair is expected to hit full-year profit targets
The budget airline is due to release its annual earnings, with consensus forecasts pointing to a pre-tax profit of €1.32billion (£1.13billion) for the 12 months to the end of March.
In February, Ryanair said it expected full-year unit costs, excluding fuel, to fall by 4 per cent compared with forecasts for a 3 per cent fall made after the first half of the financial year.
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Unit costs are defined as total operating costs for the company divided by the number of passengers.
The key differences for Ryanair is its capability to continue lowering its unit costs
Beaufort Securities said it was encouraged by Ryanair’s ability to offer lower fares while retaining net profit guidance.
“The key differences for Ryanair is its capability to continue lowering its unit costs, while delivering ‘lowest passenger costs’ amongst its EU peers, at the time of traffic growth and when competitors are forecasting flat or rising costs.
"This gap between Ryanair and its rivals will enable the group to maintain momentum.”
It is pre-tax profit of €1.32billion (£1.13billion) for the 12 months to the end of March
Ryanair is seen to be on track for further growth in the next financial year, with full-year 2018 analyst consensus at €1.46billion (£1.26billion).
The company said in its third quarter results that it expected pricing to “continue to be challenging” but would “respond to these adverse market conditions with strong traffic growth and lower unit costs”.