Ryanair profits surge as fares rise by a quarter

Ryanair has reported a jump in profits after pushing up fares in the face of strong demand for summer air travel.

The no-frills airline said passenger numbers rose 11% to a record 105.4 million in the six months to September, despite average fares rising by 24%.

That helped the carrier to report a near-60% rise in profits for the period to €2.18bn (£1.9bn).

Airlines have seen a post-Covid surge in demand for flights, and Ryanair is set to report record annual profits.

"We're pleased to report strong half year results... due to a very strong Easter [and] record summer traffic," said Ryanair's group chief executive Michael O'Leary.

The increase in air fares - which climbed to an average of about €58 (£50) - helped the airline to offset higher fuel costs.

Ryanair predicted that fares would see "mid-teens percentage" rises during the last three months of 2023, with air capacity across Europe still below pre-Covid levels.

The carrier added that forward bookings were robust heading into the peak Christmas travel period.

However, it said higher fuel costs meant it was unlikely to repeat the strong results in the current quarter that it saw last year.

Airlines typically make the bulk of their profits during the summer months when demand for leisure flying is at its highest, and often lose money over the winter.

Ryanair said it expected profits for the full-year to be between €1.85bn and €2.05bn, which would be a record high.

However, it warned that this remains "highly dependent on the absence of any unforeseen adverse events (for example, such as Ukraine or Gaza) between now and the end of March 2024".

Shanti Kelemen, chief investment officer at M&G Wealth, told the BBC's Today programme that one advantage Ryanair had over its competitors was that it had a lot less debt.

"That just gives them more of an advantage in terms of the fares they can offer relative to their competitors," she said.