Q1 2013 : results

http://www.ryanair.com/fr-be/nouvelles/fin-en-290713

Extract :

“As previously guided higher fuel costs and the timing of Easter led to Q1 profits falling €21m to €78m. Ancillary revenues grew by 25% to €357m (27% of total revenues) driven by the successful development of reserved seating, priority boarding, and higher admin\credit card fees.

Unit costs rose 4% in line with the increase in sector length. Fuel increased 6% to €577m or 47% of total operating costs. Excluding fuel, Q1 unit costs rose by 6%, slightly faster than the increase in sector length, due to a 2% rise in flight crew pay, and increased Eurocontrol, Spanish airport, and Italian ATC charges. We are 90% hedged for FY14 at $980 p.t and 70% hedged for H1 FY15 at $935 p.t. We have extended our H1 FY15 fuel currency hedge on recent dollar weakness which delivers a 3% cut in our fuel cost per pax. for the 70% already hedged in H1 FY15.

Our seven new bases Eindhoven and Maastricht (Holland), Krakow (Poland), Zadar (Croatia), Chania (Greece), Marrakesh and Fez (Morocco)) are performing well. We plan to announce more new routes and new bases later this year as we exploit significant growth opportunities in markets where competitors including Air Berlin, Alitalia, Iberia, LOT, and SAS are cutting back. We are in ongoing negotiations with MAG, the new owners of Stansted airport to reverse six years of record traffic declines, but there is no guarantee that any deal will be agreed.

The strength of our Balance Sheet with Q1 gross cash of €3.6bn and net cash of €191m, (despite another recent €177m share buyback), remains unmatched in our industry.

Outlook.
We expect Q2 yields to rise despite last year’s challenging (post-Olympic) comparables, although yields on close-in summer bookings have been slightly weaker in recent weeks due, we believe, to the heat wave in Northern Europe. As ever, our outlook remains cautious for the full year as market conditions are tough with recession, austerity, high fuel costs, and excessive Government taxes (most recently in Belgium) impacting air travel demand and yields. While we expect full year traffic to grow 3% to 81.5m, we still have no visibility over next winter’s yields, and on the basis that the recent yield weakness in close-in summer bookings does not continue, we see no reason to change our full year profit after tax guidance which remains at between €570m to €600m”.

Announcing a 21% year-on-year fall in first quarter profits to €78m (£67m), the Irish carrier admitted that the heatwave in Britain and elsewhere had meant fewer high-revenue late bookings in recent weeks. It said the effect would be felt in the next quarter's results – traditionally the period where the airline generates the most revenue and profits.

Deputy chief executive Howard Millar said there had been a "weakness" in late bookings this summer, which were normally "the cream" for Ryanair, as he blamed the hot weather keeping people from wanting to book a holiday abroad. He said average fares would have been almost 10% higher without the heatwave, adding: "Our cream will be a little thinner. We'll just have to get by."

http://www.guardian.co.uk/business/2013/jul/29/ryanair-profits-hit-uk-heatwave

My comment : I don't think that only the "heatwave" is to be blamed for the fall in traffic. As for me, I know that I have booked less flights than last year, not because of the temperature, but because of the present fares, which have considerably risen these last months ...