Ryanair has posted better-than-expected full-year earnings and gave positive indications on summer bookings, although it painted a gloomy picture for the winter season.
"Our outlook for the next 12 months remains very conservative," Chief Executive Mr Michael O'Leary said in a statement, adding he expected passenger traffic growth to drop to around 20 per cent this year to March 2005 from 47 per cent the previous year.
Europe's biggest budget airline reported a 5 per cent drop in full-year net profit to €226.6 million before goodwill and exceptional items, beating forecasts.
Ryanair, which has been slashing ticket prices to fill seats on a rapidly expanding network amid competitive conditions, reported a 6 per cent drop in adjusted earnings per share to 29.9 cents - against an average forecast of 27.9 cents.
Ryanair said that with 50 per cent of its summer season seats booked, it expected attrition in yields - a measure of average seat prices - to be at the low end of its previously forecast range of five to 10 per cent.
However, increased competition in the industry next winter could see that decline in a range of 10-20 per cent, it said.
Ryanair, whose aggressive discounting strategy has been eating into the market share of full-service carriers, pledged to lower prices further over the next four years as it expands traffic to over 50 million passengers per year.
In the year to end-March it flew 23 million people, it said.