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H1 after-tax profit 2.54 vs 2.5 bln euro analyst forecast

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Expects to recover all of last year's 7% fare decline

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Takes advantage of price dip to save on fuel hedging

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Boeing ( BA ) production 'transformed', O'Leary says

(Adds details and quotes throughout)

By Padraic Halpin

DUBLIN, Nov 3 (Reuters) - Ryanair reported

forecast-beating six-month post-tax profit on Monday and nudged

up its passenger traffic forecast after earlier than expected

Boeing ( BA ) deliveries and strong first-half demand.

The Irish airline, Europe's largest by passenger numbers,

said it cautiously expects to recover all of last year's 7%

average fare decline in its financial year to March 31, and that

should lead to "reasonable" full-year net profit growth.

Ryanair expects to fly 207 million passengers to end-March,

up from a previous forecast of 206 million after it received 23

new MAX 8 aircraft from Boeing ( BA ). Improved deliveries enabled it

to add capacity for the current quarter.

The low-cost carrier said it is confident of receiving the

six remaining MAX 8 aircraft from an order that had suffered

long delays by February.

"The team at Boeing ( BA ) have transformed the place in the last

12 months," Group Chief Executive Michael O'Leary said in an

analyst presentation.

"For the first time in many years we will have a full fleet

complement by the time we switch to the summer schedule...and I

think that will enable strong 4% traffic growth to about 215

million."

FUEL HEDGING EXTENDED AT LOWER PRICES

Ryanair's next order is for 150 of the new MAX 10 and with

Boeing ( BA ) expecting to receive regulatory approval for the aircraft

by mid-2026, according to O'Leary, Ryanair said on Monday it

would begin to accelerate pilot recruitment in advance of the

first deliveries due in early 2027.

Ryanair reported a net profit of 2.54 billion euros ($2.96

billion) for the six months to end-September, which is when it

typically makes most of its profit due to the northern

hemisphere's busy summer holiday season.

That was up 42% from 1.8 billion euros in the same period

last year and ahead of a Ryanair poll of analysts that had

expected 2.5 billion euros. Average fares grew by 13%

year-on-year.

Chief Financial Officer Neil Sorohan said demand was weaker

into November and required "a bit" of price stimulation but that

demand was up marginally during the recent school mid-term

holiday with forward bookings "slightly" ahead of the prior

year, including for Christmas.

After previously hedging around 85% of its fuel needs for

the year to end-March at $76 per barrel, Ryanair said it took

advantage of recent price dips to extend hedging for its 2027

fiscal year to cover 80% of its needs at just under $67 a

barrel.

($1 = 0.8575 euros)