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Ryanair hits record profit
DUBLIN, Republic of Ireland (CNN) -- Ryanair, Europe's second-biggest budget airline, has said profit soared to a record as it carried more passengers, flew to more destinations and cut costs. The Irish low-cost carrier said on Monday second-quarter net income rose 73 percent to 112 million euros from 64.8 million euros in the same period a year ago. Sales climbed 40 percent to 270.3 million euros in the three months ended September 30. Ryanair, which has ordered 150 737-800 aircraft from Boeing valued at about $9.7 billion to meet demand, has been winning over passengers with offers to fly some routes for as little as 9.99 euros. Low-cost airlines -- like Ryanair (RYA) and Easyjet (EZJ) -- are expanding their fleets as demand continues to grow, even as traditional national flag carriers cut routes and jobs, and ground aircraft to counter the impact of an economic slowdown and the effects of September 11.
The airline raised its estimate for full-year net income by 15 percent but cautioned that its first-half results were exceptional and that profit growth in the third and fourth quarters would be slower as average fare yields would be lower. Ryanair carried 7.84 million passengers in the first half of its fiscal year, up 37 percent, and managed to fill 88 percent of all planes, up 6 percentage points on the first half of last year. The airline cut fares by two percent and operating costs fell 11 percent. "Yields in Q3 and Q4 will be significantly lower and as a result profit growth will not be as strong as in the first half. However given our strong performance in the first half it is appropriate to raise our guidance for the full year from 200 million euros to 230 million,'' Chief Executive Michael O'Leary said in a statement. The summer quarter accounts for more than 40 percent of Ryanair's full-year earnings, analysts said, the first-half and second-quarter numbers were in line with expectations, Reuters said. First-half net income rose 71 percent to 150.9 million euros as revenue soared 35 percent to 464.6 million euros. "These figures are well ahead of expectations and I will be upgrading my forecasts on the back of them,'' analyst Shane Matthews at Dublin-based NCB Stockbrokers, told Reuters. The airline added 13 more Boeing 737-800 aircraft over the six month period and said it would announce more routes after Christmas.
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