Shares in Irish budget airline Ryanair (RYA) cruised up to an all-time high on full-year figures that revealed a solid underlying increase in passenger traffic and an upward trend for average fare prices. The carrier's predilection for charging for anything either not nailed down, or larger than a small attache case, helped boost operating profits by 16 per cent to €718m (£606m), despite higher fuel and staff costs.
Ryanair's fuel bill rose by 18 per cent during the year to €1.88bn, partly because of firmer oil prices, but also because of higher levels of activity. Indeed, having been seriously caught out by rising prices in the past, management has taken few chances with its fuel hedging policy. Ryanair now has 90 per cent of its fuel needs hedged out through 2014 at $980 a tonne (or $98 a barrel), while 25 per cent of 2015's requirement is already hedged at $93 a barrel.
The 11 per cent increase in passenger revenues to €3.82bn comprised a 6 per cent fare rise and a 5 per cent increase in passenger numbers, with an average load factor per plane of 82 per cent. Management forecasts that passenger numbers will rise by 3 per cent in the current financial year to 81.5m.
Investec estimates are under review pending possible upgrades but, prior to these results, the broker forecasts adjusted EPS of 42.4¢, up from 39.5¢ in 2013.
RYANAIR (RYA) | ||||
|---|---|---|---|---|
| ORD PRICE: | €6.70 | MARKET VALUE: | €9.7bn | |
| TOUCH: | €6.70-€6.71 | 12-MONTH HIGH: | €6.77 | LOW: €3.42 |
| DIVIDEND YIELD: | nil | PE RATIO: | 17 | |
| NET ASSET VALUE: | 226¢ | NET CASH: | €61m | |
| Year to 31 Mar | Turnover (€m) | Pre-tax profit (€m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2009 | 2.94 | -181 | -11.4 | nil |
| 2010 | 2.99 | 341 | 20.7 | nil |
| 2011 | 3.63 | 421 | 25.2 | nil |
| 2012 | 4.39 | 633 | 38.0 | nil |
| 2013 | 4.88 | 651 | 39.4 | nil |
| % change | +11 | +3 | +4 | - |
| £1: €1.185 | ||||
