Today’s move by Ryanair to ground nearly a quarter of its fleet at Stansted this winter may not be good news for anyone looking to fly to a remote part of France at Christmas. But it’s being cheered to the rafters in the City.

Ryanair’s shares started the day at their lowest point of the year, 25 per cent off their high. They have already recovered a third of that in one morning.

The move at Stansted is seen as a rational one to protect yields, which Ryanair fears could fall 10 per cent. Net profit as a result could be 10 per cent higher this year, double the previous guidance.

Just as important in the short-term are today’s first quarter results. Analysts had feared a hefty fall in yields over the three months to June 30, but in the end they were flat.

Ancillary revenues from car hire, travel insurance and baggage charges are up 53 per cent. Passenger numbers have also climbed to nearly 140,000 a day.

Customers have clearly continued to book seats despite a higher air passenger duty, and this will have a positive read-through for easyJet and British Airways. After a turbulent start of the year, the clouds are beginning to clear for UK airlines.

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