Ryanair lifts profit guidance

Ryanair announced Monday that it was expecting almost 20 percent higher profits than originally forecast for its fiscal year ending March, with net profit estimated to come in at between 750 million euros ($937 million) and 770 million euros.

The improved guidance came after Europe's largest budget airline reported a rise in profit after tax to 795 million euros in the six months to September, the first half of Ryanair's financial year. The figure was up 32 percent over the same period last year. Sales advanced nine percent to 3.5 billion euros.

"We've had a bumper half year and we've had to boost our guidance as we got visibility on the second half of the year," said Chief Executive Michael O'Leary.

O'Leary attributed the rise partly to a series of customer service improvements, including ticket change flexibility, greater baggage allowance, priority boarding and premium seats. This had led to 4 percent higher traffic, he said, and 2 million more tickets sold than planned for the upcoming winter period.

"We are keeping prices low while improving the service, it's as simple as that," O'Leary said, adding that Ryanair was planning to boost its market share by cutting fares by up to 5 percent until December and a further 10 percent in the first three months of 2015.

By contrast, Ryanair's higher-cost rivals Lufthansa and Air France-KLM have both lowered their profit forecasts for this year blaming tough competition and the costs of recent industrial action.

uhe/ng (Reuters, AFP, dpa)