Ryanair reports full year profits up 20 percent

Source: Supply Chain Digital

Date :04/06/2008 15:42:04

Ryanair, the low fares airline, yesterday announced a 20 percent increase in full year net profits after tax to €481 million.

The airline reported that traffic grew by 20 percent to 51 million, while revenues totalled €2.714 billion, up 21 percent. Ryanair introduced a unit cost increase of two percent due to higher staff and airport costs.

Improved service

CEO Michael O’Leary said, “Delivering record profits and traffic during a year of much higher costs is a testimony to the strength of the Ryanair lowest fare model.”

O’Leary went on to comment on the highlights of the past year for the airline, including the addition of 30 new aircraft to the fleet, and an increased stake in AER Lingus plc to 29.2 percent.

Three new bases were opened by the firm this year at Bournemouth, Edinburgh and Belfast, along with 201 new routes. The CEO also drew attention to the airline’s improved punctuality and customer service figures at guaranteed lowest prices.

Fuel surcharges

While other airlines are increasing fares in a bid to offset the soaring price of fuel, Ryanair has promised consumers it will absorb these higher costs.

The firm has emphasised its commitment to a policy of no fuel surcharges in order to continue to deliver low fares to passengers.

Ryanair expects to break even in the coming fiscal year to March 2009 as it remains dependent on fares and fuel prices.

June 4, 2008