Shares in Ryanair Holdings rose more than 6% Monday after the Irish low-cost airline reported a narrower fiscal third-quarter loss and lifted its earnings outlook for the year due to falling fuel prices and a better-than-expected yield.
The company said its loss in the quarter ended Dec. 31 shrank to 10.9 million euros ($15.1 million) from 118.8 million euros a year earlier as fuel costs dropped 37% over the period.
“Yields fell by 12% which was better than anticipated due to an improved mix of new routes and bases this winter and deep cuts in loss making winter capacity at high cost airports such as Dublin and Stansted,” said CEO Michael O’Leary.
The airline now sees the decline in yields for the year at around 15%, compared to the 20% it had previously expected.
It also lifted its profit guidance, forecasting net earnings of 275 million euros for the year, compared to its previous outlook for earnings at the lower end of a range of 200 million euros to 300 million euros.
Shares in the group climbed 5.2% on the London Stock Exchange Monday, having risen as much as 6.6% in early trading.
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