No-frills airline Ryanair beat forecasts with an 18-percent jump in half-year profit after a strong summer and cheered investors on Tuesday with a surprisingly upbeat take on the full year.
Net income grew 18 percent to 200.1 million euros ($255.1 million) in the six months to the end of September from 168.9 million euros a year earlier, the Irish carrier said.
Analysts had expected a net profit of 187.6 million euros, the median of eight forecasts in a poll by Reuters last week.
For the quarter, a net of 147.6 million euros topped the 135 million forecast by analysts.
Chief Executive Michael O'Leary told Reuters he expected a net profit of more than 200 million euros for the full year, better than many analysts had expected, even taking into account slower business over the winter months.
"We think they will come in above 200 million euros," he said. When asked how much above that level, he said: "Not a lot".
Fuel at $55 a barrel would limit Ryanair's full-year net profit to a little over 200 million euros while the carrier could achieve a net of as much as 250 million euros if oil prices ease, O'Leary said.
He did not provide a per-barrel price for hitting that target, but said the company would be profitable even if oil shot to $70 a barrel.
Ryanair said it did not plan to change its policy of remaining unhedged against fluctuating fuel prices until they return to "normal".
The group has said it would start to hedge again around $30 a barrel.
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