Budget airline Ryanair has hiked its full-year profit guidance by 25 per cent following stronger-than-expected trading over the peak summer period.
The Irish carrier had been forecasting a net profit of €940 million (£611m) to €970m, but has now lifted that range to between €1.18 billion and €1.23bn.
CMC Markets analyst Jasper Lawler said: “Ryanair has benefited from more UK holiday makers tempted to foreign shores by poor British weather in August, a stronger pound and lower fares thanks to the drop in oil prices.”
First-half traffic grew 13 per cent, ahead of the airline’s 10 per cent guidance. Fares, which were expected to be flat, rose more than 2 per cent.
Chief executive Michael O’Leary said Ryanair had been “surprised” by the summer’s strong bookings and fares.
However, he added: “We would urge shareholders and analysts to avoid irrational exuberance while we continue to execute our very ambitious growth plans during what we expect to be very attritional and sustained fare wars across Europe.”