Ryanair profits up 300%
02.11.09
Ryanair announced 300% growth in six month profits to the end of September. Pre-tax profits were €419.4m (£376.2m), up from €105.2m in the same period last year, after a 42% fall in fuel costs and 17% fall in its average fare. Ancillary revenues grew by 8% to €346.3m in the first half, accounting for almost 20% of revenues. However, ancillary revenues per passenger have plateaued.
For the three months ending September 30, Ryanair reported a net profit of €250.5m, up 34.8% compared to a year earlier. Revenue fell to €992m from €1.03bn. The airline cut operating expenses by 16% to €694m, including a 27% (€176m) reduction in fuel costs.
Ryanair warned investors that it planned to cut average fares by about 20% in the next six months, which would mean it would make a loss for the second half of the year. But it maintained its forecast for profits in the full year of €200m - €300m. It added that market conditions were still ‘difficult’ with ‘an absence of consumer confidence’.
Passenger numbers rose to 36.4m in the six month period, up 15% from the same period last year. Ryanair COO Michael Cawley said Christmas bookings are looking ‘very good’, helped by lower fares. He said Ryanair will open one more base before Christmas and another three to four bases to its existing 36 bases.
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