Ryanair boosted by rivals fuel charges
Ryanair has claimed that fuel surcharges imposed by its rivals have helped it to increase passenger numbers. The no-frills carrier, releasing its half-year results, said that passenger numbers increased 24 per cent in the six months to September, with profits up some 18 per cent. The result of this was that the carrier’s net income rose to 200.1 million euros – ahead of City forecasts of around the 187 million-euro mark. According to the BBC News website, the carrier said that it would continue to resist “fuel hedging” until world oil prices return to normal. While passenger numbers and overall profits have risen, the carrier is forecasting that passenger yields will drop by 5-10 per cent during the second half of the year – however, this forecast is amended from previous estimate of a 10-20 per cent decline. A spokesman is quoted as saying: “We attribute this to a combination of slightly better peak summer yields and the initial impact of the fuel price surcharges imposed by many of our high-fare competitors.” Report by Tim Gillett, News From Abroad Ltd
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