Analysts bullish in advance of Ryanair figures
The investment community will be eagerly eyeing Ryanair's outlook for the remainder of the financial year as the airline delivers its interim results this morning.
Following a recent surge in profitability at legacy carriers, including British Airways, Lufthansa and Air France-KLM, analysts will be waiting to hear how the airline's current third quarter is progressing.
Davy Stockbrokers has pencilled in pre-exceptional net income of €315.5m for the second quarter to the end of September and expects full-year net income to come in at €375m. That's the top end of a previous full-year estimate given by Ryanair of between €350m and €375m. While Ryanair previously left its full-year guidance unchanged, some analysts expect the airline to comfortably beat its own targets in the full 2011 financial year, which ends next March.
Consensus earnings figures compiled by Bloomberg show analysts reckon Ryanair will deliver adjusted net income of €349m for the second quarter and revenues of €1.26bn.
Analyst Stephen Furlong at Davy's said the key variable that could affect numbers was Ryanair's yield -- the average fare it generates from each passenger.
Goodbody Stockbrokers is expecting the airline to report pre-exceptional net income of €494m for the first half of the year to be reported today. That's up on the €387m the airline reported in the first half of last year.
Goodbody analyst Ken Darmody thinks Ryanair will deliver the figure despite a 38pc year-on-year rise in fuel costs.
Meanwhile, Michael McAteer of Grant Thornton, the examiner of Aer Arann, will be in court this afternoon to give an update on proceedings in efforts to help the troubled carrier adopt a survival plan. Last Friday, Justice Mary Finlay said she had "serious concerns" regarding the plan put forward by the examiner. That scheme involves some creditors such as the Dublin Airport Authority and Allied Irish Banks being repaid in full, but others receiving minimal amounts.
Aer Arann chairman Padraig O Ceidigh would inject fresh equity in the airline and retain a majority stake.
The Revenue Commissioners had objected to the scheme on Friday, saying it was being treated unfairly. However, it is believed a deferred payment scheme could be adopted that would enable the Revenue Commissioners to be paid.