OREANDA-NEWS. January 28, 2013.   Ryanair, Europe’s only ultra-low cost carrier today (Jan 28) announced Q3 profits of EUR 18m, up EUR 3m on last year despite an EUR 81m increase in fuel costs. Revenues rose 15% to EUR 969m as traffic grew 3% to 17.3m passengers. Unit costs rose 11% mainly due to a 24% (EUR 81m) increase in fuel. Excluding fuel Q3 unit costs rose by 4%, while avg. fares improved by 8%.

 
Summary Q3 Results (IFRS) in Euro.
 
Q3 Results (IFRS) EUR   Dec 31, 2011  Dec 31, 2012  % Change
Passengers  16.7m 17.3m      +3%
Revenue EUR 844m EUR 969m    +15%
Profit after Tax EUR 14.9m EUR 18.1m     +21%
Basic EPS(euro cent) 1.02 1.25     +23%

Ryanair’s CEO Michael O’Leary said:

“Our Q3 profit of EUR 18m was ahead of expectations due to strong pre-Christmas bookings at higher yields. The 8% rise in avg. fares reflects our improved customer service, record punctuality and the successful roll out of our reserved seating service. Our fuel costs rose EUR 81m, (+24%), slightly less than expected as oil prices increased 22% (from USD 84pbl) to USD 102pbl. Excluding fuel, Q3 unit costs rose 4% due to excessive increases in Italian ATC costs, Spanish airport charges, and the strength of Sterling to the Euro. Ancillary revenue performed strongly and rose 24% to approx. EUR 13 per pax.

New Routes and Bases.
 
Our new routes and bases are performing well in their first winter, although some smaller bases such as Budapest and Warsaw are doing so at very low prices. Our 51st base Maastricht opened in December, and we will open 6 new bases (total 57) from April in Eindhoven, Krakow, Zadar (Croatia), Chania (Greece), Marrakesh and Fez (Morocco). Significant capacity cuts by Legacy and other struggling EU carriers continue to offer us substantial growth opportunities across Europe.   We expect further capacity cuts and restructurings in Europe as high fare, loss making carriers struggle to compete with Ryanair’s expansion at low prices. During Q.3 Iberia, AFKLM, Air Berlin, and Lufthansa all announced major restructurings. Both LOT and SAS are seeking further state support while the Swiss charter airline “Hello” has closed. These trends will create more growth opportunities for Ryanair to grow profitably to 120m passengers over the next decade.