Ryanair Q3 profits up 6%
Ryanair saw third quarter profits rise 6% to 37 million euros (£25 million) despite “the drag on profitability of very high fuel prices”.
The no-frills carrier admitted that yield in the three months ending December 31 were almost flat despite a 26% rise in passengers carried to 8.6 million from 6.9 million in the same period the previous year.
Chief executive Michael O’Leary said the Ryanair model had proved that during “difficult trading conditions” the carrier could increase profitability and generate passenger growth while many rivals are reporting falling profits or losing money.
Fuel costs rose by 59% to 115 million euros and the airline has hedged the costs of its fuel at $49 a barrel until the end of March.
O’Leary said Ryanair would continue to monitor forward prices with a view to hedging future requirements but admitted that fuel prices were expected to remain high “for some time”.
The carrier’s “relentless focus on cost reduction” includes the start of web check-in for passengers with hand luggage from March 16 and a £2.50 charge for checked bags. O’Leary said the moves would reduce airport handling costs by up to 30 million euros a year.
The launch of a new base at Nottingham East Midlands Airport has been postponed by a month to April due to late delivery of aircraft resulting from a strike at manufacturer Boeing.
O’Leary added: “We continued to extend our lead of British Airways by carrying more passengers each month than they did on their entire worldwide network.”
Ryanair continues to lead opposition to a £4 billion development of Stansted by owner BAA, with O’Leary reiterating claims that a second runway can be delivered for £1 billion or less.
Report by Phil Davies
Phil Davies
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