Ryanair increases marketing spend and swings to profit
Ryanair says higher prices helped offset falling passenger numbers and rising fuel charges in its last quarter, helping the low-cost carrier increase revenue and profit.
A 17% fare bump helped lift revenue by 13% to €844m (£706m). The income lift helped the airline register a €14.9m (£12.5m) profit in the three months to 31 December, reversing the €10.3m (£8.8m) loss in the same period last year.
Rising revenues also helped mitigate a 2% drop in passenger numbers and an 18% increase in fuel costs.
The company increased marketing spend by 18% to €137.1m (£114.8m) in the quarter in a bid maintain the momentum it and other low-cost carriers such as EasyJet have seen in a sector where rivals such as Lufthansa and Air France KLM have recently issued profit warnings.
The Irish carrier, led by Michael O’Leary (pictured), recently announced the creation of 1,000 new jobs, including several sales and marketing positions, to handle expansion plans.