Ryanair's Christmas bookings 'strongly ahead', with just 40% of seats available until new year

Average fares up mid- to high single digits, said chief executive Michael O'Leary

Budget airline Ryanair's Christmas bookings are slightly ahead of where they were at the same time last year, with around 40% of seats remaining to be sold until the end of December, chief executive Michael O'Leary said on Tuesday.

Budget airline Ryanair's Christmas bookings are slightly ahead of where they were at the same time last year, with about 40% of seats remaining to be sold until the end of December, chief executive Michael O'Leary said on Tuesday.

"Bookings for Christmas are running strongly ahead. At the moment, we're about half a percent ahead on forward bookings from where we were this time last year, and average fares at the moment are up sort of mid- to high single digits," he told a press conference at Vienna International Airport.

Meanwhile, British carrier EasyJet reported better-than-expected full-year operating profit on Tuesday, and lifted its medium-term target for its holidays business after meeting the previous goal early.

Analysts deemed the quarter "reassuringly surprise-free", but some were disappointed by a near 3% drop in revenue per available seat kilometre. The airline also projected some potential weakness in winter sales.

European airlines have reported mixed results in the final quarters of the year, as spiralling costs and repercussions from air traffic control strikes weigh on their balance sheets despite strong demand.

However, budget carriers like Ryanair and EasyJet have managed to dodge a lot of the troubles facing larger European carriers, who saw repercussions from weaker transatlantic travel tied to US president Donald Trump's tariff threats.

EasyJet's headline operating profit for the financial year ended September grew to £703m (€799m), above the £669m (€761m) projected by analysts polled by LSEG.

The company's high-margin package holiday arm, EasyJet holidays, is now expected to log £450m (€511m) in pretax profit by 2030, having hit its previous medium-term target of £250m this year. 

"We are well placed to seize the significant opportunities ahead, and we are confident in achieving our medium-term goal of delivering over £1bn in profit before tax," chief executive Kenton Jarvis said in a statement.

The holidays business has helped easyJet bolster its results in recent years, as a resurgence in price-controlled package holidays for price-sensitive consumers has boosted the airline sector.

The carrier said in July it expected good profit growth despite higher fuel prices and the negative impact of French air traffic control strikes on its earlier results.

EasyJet, which operates an Airbus fleet equipped with CFM engines, has dodged many of the issues that have plagued the airline industry with servicing delays at engine maker Pratt and Whitney.

Reuters