Ryanair reports 80% profits rise

Monday, November 02, 2009

Chris Gray


Ryanair today announced an 80% increase in half year profit despite a big drop in average fares.

The airline made a €387 million profit in the six months to September even though fares were down 17% to £39.

The drop in fares was offset by a 27% fall in non-fuel costs, and an 8% rise in ancillary revenue, which now accounts for a fifth of Ryanair’s income.

However, chief executive Michael O’Leary said the profit figure had been distorted by a 42% fall in fuel costs and warned that the next half of the year would be loss making, although the airline expected to return a full-year profit of between €200-300 million.

O’Leary also threatened to ditch Ryanair’s growth strategy if he could not agree a deal to buy more 200 aircraft from Boeing by the end of the year for delivery between 2013 and 2016.

If Boeing did not pass on savings it had enjoyed from suppliers and more efficient manufacturing techniques, Ryanair would defer or cancel the orders, he said.


Rather than investing in new aircraft, it would use its surplus cash to pay dividends to shareholders over the next three years, O’Leary added.



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