(FT) -- Continued growth in passenger numbers and an increase in fares has buoyed revenues at Ryanair, prompting the low-cost airline to raise its full year earnings estimate above the top end of its previous range.
However, signs emerged of a relative slowdown in the airline's ancillary revenues, the hitherto fast-growing business that includes non-ticket items such as baggage check, travel insurance and onboard snacks.
Ryanair said that due to higher-than-expected yields -- or average fare levels -- in the third quarter, it is now forecasting full-year net profit of between €380m and €400m ($560m), up from its previous forecast range of between €350m and €375m.
Shares in Ryanair fell 6 cents, or 1.5 percent, to €4.07 in early trading on Monday.
In the six months to September, Ryanair carried 40.1m passengers, up 10 per cent from the 36.4m it carried in the same period last year. Average fares rose by 12 per cent in the period to €44 and total revenue per passenger -- including ancillary revenues -- also rose 12 percent.
For the half-year ending in September, pre-tax profit increased by 15 percent from to €483m on revenues that rose 24 percent from to €2.2bn. Earnings per share rose from 25.21 cents to 28.31 cents.
Michael O'Leary, the group's chief executive, on Monday took the opportunity to attack the Office of Fair Trading's investigation into Ryanair's stake in Aer Lingus. The investigation, announced last week, is considering whether Ryanair is influencing Aer Lingus's business.
"If you look at the way it has been mismanaged it's fairly obvious we have no influence on Aer Lingus," he said.
He likened the OFT's investigation into Ryanair's stake -- taken four years ago -- to an investigation into the proposed merger of Greece's Aegean and Olympic airline launched in 2014.
Ryanair launched a base at El Prat airport in Barcelona in September and will launch bases in Valencia and Seville in November.
CNN
