Ryanair holds profit outlook in update on its trading
Published 01/10/2010 | 05:00
RYANAIR has maintained its full-year profit guidance of between €350m and €375m for the current financial year following an investor day at Stansted Airport.
Management told institutional investors and analysts that growth at the airline will be slowed until 2013.
However, analysts have suggested that Ryanair has been playing its traditional conservative guidance card, and that the final out-turn is likely to be higher than projected.
Broker Panmure Gordan said that had Ryanair altered its guidance this week, it would have had to raise it.
Stephen Furlong, analyst at Davy stockbrokers, said that while guidance remained unchanged, he sees "clear upside potential, although visibility remains low". He's retaining his €5 price target - also echoed by Panmure.
Commerzbank analyst Johannes Braun also said that any changes to Ryanair's guidance risks are on the upside.
Ryanair management reiterated that regularised dividend payments won't become a feature of the carrier even as it spins off large amounts of cash.
Ryanair also said yesterday that it will launch a service between the Estonian capital Tallinn and Dublin in December as it opens a new base in the Baltic country's capital.