O'Leary hails Ryanair's 'robust' results

O'Leary hails Ryanair's 'robust' results

Ryanair reported static profits in the three months to June despite a 29% rise in revenue.

The low-cost giant posted an 11% year-on-year increase in average fares and an 18% rise in passenger numbers to more than 21 million in the quarter.

However, a 49% increase in the price of fuel largely offset the improvement in performance.

Ryanair recorded a quarterly profit of €139 million (£123 million), 1% up on a year ago, on a revenue of €1.155 billion (£1.02 billion).

Chief executive Michael O’Leary hailed what he called a “robust result”, saying it was “testimony to the strength of Ryanair’s model which continues to deliver profit and traffic growth despite the recession and high oil prices.”

O’Leary said: “Traffic growth was flattered by the airspace closures of April-May 2010 following the Icelandic volcanic eruptions, which led to a loss of almost 1.5 million passengers.”

Ryanair’s ancillary sales grew by 22% to €248 million (£219 million), representing 21% of revenue.

O’Leary said if a trial of sales of reserved seats on flights goes well, the service would be extended across the airline’s network this winter.

The carrier reported its outlook for the rest of the year unchanged, forecasting an average fare increase of 12% on 2010-11 and annual profits of €400 million (£354 million), the same as last year.

O’Leary said: “A combination of recession and competitor capacity cuts continues to create growth opportunities across as airports aggressively compete to attract Ryanair.”

The carrier announced it would “shortly launch legal proceedings” against BAA Stansted to seek recovery of “substantial overcharges”. This follows confirmation last week of the Competition Commission ruling that BAA must sell the airport.


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