Ryanair, Europe’s largest international airline, today announced record half year after tax profits of €408 million, a 24 percent increase on last year
Higher costs
The no-frills carrier reported that traffic grew by 20 percent to 26.6 nillion and yields fell by one percent as revenues rose by 24 percent to €1,554 million, with unit costs increasing by five percent, mainly due to higher fuel, staff, and airport costs.
Michael O'Leary, Ryanair’s CEO, heavily criticised airport company BAA in his report, saying that:
“The UK Competition Commission’s investigation of the BAA monopoly clearly confirmed that they are responsible for the abysmal service and long security queues which passengers are suffering at Stansted airport.
“This report also highlighted the negative impact of the BAA’s monopoly ownership of the main London airports which has resulted in excessive charges and retarded their development. We believe that the BAA’s abusive monopoly should be broken up, urgently, if the best interests of consumers are to be realised. Competition works – airport monopolies don’t.
Failure
“The CAA has repeatedly failed to effectively regulate this monopoly which is why it continues to provide third world service levels, at extortionate prices, especially at Stansted, where users’ requirements are repeatedly ignored by an airport which plans to waste £4bn building a gold plated second terminal and runway when these facilities should be provided at less than one quarter of this cost.”
To celebrate the record half year results, the company has launched a four million seat sale with fares at €10/£10 inclusive.
November 5, 2007