Ryanair Holdings PLC's profit increased 10% in fiscal year 2018 as traffic rose and fares declined.
But the European airline said it expects its profit to decrease in the coming year because of higher costs and low ticket prices.
The airline reported profit attributable to equity holders of €1.45 billion, or €1.20 per share, for the year that ended March 31, up from €1.32 billion, or €1.05 per share, in the prior fiscal year.
Total operating revenues from continuing operations rose 8% year over year to €7.15 billion from €6.65 billion. Ryanair said scheduled revenue increased 5% and ancillary revenues were up 13% due to traffic growth of 9% to more than 130 million passengers. The company said its average fare was down 3% for the year and unit costs fell 1%.
Operating profit was €1.67 billion for the year, up 9% from €1.53 billion in the prior year.
The airline expects its profits to decrease to a range of €1.25 billion to €1.35 billion in fiscal year 2019 as ancillary revenue growth is not expected to offset higher costs and lower fares. Ryanair projects traffic to grow by 7% to 139 million and unit costs are expected to rise by 9% because of higher staff and oil prices. The company said fares are expected to decline by 5% in the first fiscal quarter but should rise 4% in the second quarter.
Ryanair's stock closed up 5.14% to €16.27 after falling about 3% at the open.
