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Ryanair see profits rise again
Ryanair saw profits rise 21% and passenger volume soar 30% as the low cost carrier reported record first quarter results.
Despite the performance, chief executive Michael O’Leary said the company was “cautious” about the outlook for the rest of the year with escalating fuel costs and terrorist attacks among the potentially damaging factors.
“If there are no further attacks in London then we expect that our forward bookings will not be materially impacted,” he said. “However, if there are further incidents in London both bookings and yield could be adversely impacted.”
Profit after tax in the three months to June 30 rose to £44.4 million, despite an increase in fuel costs of 112% to £75.7 million. Revenue increased 35% to £278 million. Yields were 3% higher – “slightly better than expected”, according to O’Leary – with passenger volumes up 30% to 8.5 million.
O’Leary said the constantly increasing fuel surcharges imposed by many traditional airlines was helping the carrier.
“These surcharges continue to widen the gap between their high fares and Ryanair’s low fares,” he said. “Both our traffic growth and yields have significantly benefited from our commitment not to impose fuel surcharges on our passengers.”
He warned that such high fuel costs will force some carriers out of business.
Looking ahead, O’Leary said expansion will continue with a fifth aircraft added to Liverpool at the end of September with routes launched to Oslo, Riga and Bergerac and Carcassone in France.
Stansted has also seen new routes to Toulon and Krakow.
Despite his cautious outlook, O’Leary said Ryanair was still on course to grow passenger numbers by 27% to 35 million.
Report by Steve Jones
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