Ryanair has booked a solid increase in full-year profits but warned that rising oil prices could take the gloss off its performance over the next 12 months.
The budget carrier saw a 10% rise in post-tax profit to €1.45 billion (£1.26bn) in the 12 months to March 31, while revenue jumped 8% to €7.15bn (£6.25bn).
Passenger numbers were also up, jumping 9% to 130.3 million on the back of falling average air fares, which were down 3% to €39.40.
The solid figures came despite what Ryanair described as a “rostering management failure”, when it was forced to cancel flights after mismanaging pilots’ annual leave.
The September debacle, which affected 700,000 passengers, came alongside pilot strike action.
Ryanair boss Michael O’Leary said: “We are pleased to report a 10% increase in profits, with an unchanged net margin of 20%, despite a 3% cut in air fares, during a year of overcapacity in Europe, leading to a weaker fare environment, rising fuel prices and the recovery from our September 2017 rostering management failure.”
However the chief executive also struck a cautious tone over the airline’s prospects for the coming financial year, pointing to higher oil prices and Brexit.
Ryanair expects unit costs over the next year to rise by 9% following the surge in oil prices, which have risen to almost $80 per barrel.
It will add more than €400m to the group’s costs (£349m).
Staff costs will rise by almost €200m (£174m).
The net result will be a fall in profits to between €1.25bn and €1.35bn, Ryanair said.