Ryanair Holdings plc reported a 12% increase in profit in the fiscal third quarter but warned that negotiations stemming from pilot unionization could lead to "localized disruptions" and "adverse PR" for the remainder of the year.
The Irish budget carrier posted net income of €105.6 million, compared to €94.7 million in the fiscal third quarter of 2017. Earnings per share were 8.93, euro cents, up from 7.60 cents a year ago.
Total operating revenue for the third quarter of 2018 rose to €1.40 billion from €1.31 billion. Operating profit climbed to €126.0 million from €118.8 million in 2017.
The company reported a 4% decline in average fares to just €32 per customer which drove 6% traffic growth to 30.4 million at a 96% load factor. Unit costs fell by 1%.
Ryanair said it was cautious regarding its outlook for the remainder of the year.
"As we finalize union discussions along similar lines to that agreed in the U.K., we expect some localized disruptions and adverse PR so investors should be prepared for same," CEO Michael Leary said. The company said that it expects full-year traffic to grow 8% to 130 million and for fares to drop by at least 3%. Leary said that summer 2018 fares will remain under pressure.
It also said that it is maintaining a full-year guidance in a range of €1.40 billion to €1.45 billion.
The board approved a €750 million share buyback that will take effect in February and will be completed by the end of October.
