Ryanair warns of ‘modest’ 2016 at its trading update
Ryanair has warned that profits could be modest in 2016 as it raises its profit expectations for 2015.
The low cost airline has reported a net profit of €49m for Q3, compared to a loss of €35m for the same period last year.
Traffic is up 14% while average fares and revenues also grew.
It has raised its full yet net profit guidance from between €810m and €830m to between €840m and €850m.
But it comes with a warning for 2016.
The low cost airline said 2016 profits could be modest as it is unable to benefit from lower oil prices like its competitors due to fuel hedging.
In turn reduced oil prices are likely to lead to rivals lowering fares.
The airline said: "As lower oil prices kick in over the next two years, Ryanair intends to pass on much, if not all, of these savings to our rapidly growing customer base in the form of lower fares and therefore our profit growth expectations will be modest in FY16."
Ryanair said a €520m special dividend will be paid on February 27.
The airline said: "In light of our improved profitability and cash flows the Board has now approved a €400m share buy-back programme to commence on 12 Feb next.
"This systemic programme will, subject to market conditions, be executed over a 6 month period from Feb to August 2015. "
Ryanair is planning a number of events and special promotional fares to celebrate the 30th anniversary of its first flight from Waterford to Gatwick in May.
Diane
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