– The Irish low-cost airline Ryanair raised its full-year profit forecast on Monday, thanks to strong demand in Northern Europe, which resulted in a dramatic increase in average ticket prices over the last three months of 2012.
The largest low-cost airline in Europe, based in Dublin, has raised its profit forecast for the year ending in March to 540 million euros, compared to the previously expected range of 490 to 520 million euros.
– We have recorded strong demand in the UK, Germany, and Scandinavia, which has directly translated into our profit – said Chief Operating Officer Michael Cawley.
Strong demand ahead of Christmas and a significant jump in bookings have pushed ticket prices in Northern Europe noticeably higher than we had forecasted, he emphasized.
In Southern Europe, sales did not perform as well, particularly in Spain, which was especially weak. In Italy, sales stagnated, Cawley reported.
An average ticket price increase of eight percent brought the company a profit of 18 million euros in the traditionally weak quarter ending in December. Analysts surveyed by Reuters had expected an average loss of five million euros.
The increase in ticket prices significantly exceeded analysts’ expectations, who had anticipated a price rise of three percent.
In the quarter ending in March, prices will rise more slowly, notes Cayley. Revenues in the observed period jumped 15 percent to 969 million euros.
Ryanair has managed to attract customers from traditional carriers that have reduced capacity due to slow economic growth in Europe and high fuel costs.
