Ryanair added that it remains concerned about the next winter as “we have zero yield visibility but expect recession, austerity, currency concerns and lower fares at new and growing bases... will make it difficult to repeat this year's record results.”
At 9:30 am, Ryanair shares changed hands at €3.82, down 5.5 percent from Friday’s close.
On a positive side, Ryanair said it posted record profits of €503 million in the year to end March, up 25 percent from 2010, as traffic increased five percent to 76 million passengers, lifting revenues 19 percent to €3.63 billion.. Ryanair said this was a “commendable result” given the high oil prices and the tough economic environment in Europe.
Oil prices rose 16 percent to US$85 per barrel, resulting in a fuel bill of €360 million.
For the current financial year, Ryanair expects to report profits of between €400 and €440 million.
Ryanair said it is opening a new base in Hungary and expand its presence in Spain, Scandinavia and provincial UK following the closure of Hungarian airline Malev, Spain’s Spainair and Danish airline Cimber Sterling.
“We expect more European failures in 2012, as higher oil prices and recession continues to expose failed airline models as well as subscale or peripheral carriers,” Ryanair told investors this morning.