Ryanair, Europe's biggest budget airline, raised its full-year profit forecast on Monday as a 17 percent rise in fares made up for more expensive fuel and reduced capacity, Reuters reported. Underlining the resilience of the low-cost sector as legacy carriers struggle, Ryanair soared past analyst forecasts with a net profit of 15 million euros ($20 million) in its third quarter to Dec. 31. Its shares, which have gained 35 percent in the past five months, outpacing the broader Irish market, hit a four-year high initially and closed 0.9 percent higher at 4.19 euros. The higher fares made up for a 2 percent fall in passenger numbers as the airline grounded 80 of its 270 planes over the winter due to high fuel costs. Ryanair followed British peer EasyJet in posting strong revenue growth as higher-priced rivals are battered by fuel costs and a struggling global economy. German group Lufthansa (LHAG.DE) and Air France-KLM (AIRF.PA) have cut profit forecasts after being hit by fuel cost rises and slashed plans to expand in 2012. Ryanair's revenue was 844 million euros in the quarter, ahead of an average forecast of 819 million in a poll of 21 analysts compiled by the company. Quarterly net profit of 15 million euros was well ahead of a 16 million loss forecast. It increased its full-year net profit forecast by 9 percent to 480 million euros. "The EU recession, higher oil prices, the unfolding failure of the package tour operator model, significant competitor fare increases and capacity cuts, has created enormous growth opportunities for Ryanair," Chief Executive Michael O'Leary said in a statement. Ryanair is examining opportunities in Spain following the collapse last week of loss-making rival Spanair, Chief Financial Officer Howard Millar told Reuters. -- SPA
