Ryanair defies trends and releases sky-high profits

Ryanair has reported a 35 per cent increase in profits, as the cut-price air carrier defies current difficulties facing the airline industry.

The company's post-tax profits rose to £17.6 million during the fourth quarter of 2001 at a time when most large airlines are suffering severe losses thanks to the downturn in passenger numbers. Major carriers such as British Airways have been hit particularly hard due to a decrease in business travel, especially on transatlantic flights.

However, low-cost carriers such as Ryanair and Easyjet have benefited from the situation, as they do not fly transatlantic, nor do they stratify their seats. Offering fares that average around £35, such companies pass on fewer costs to their customers through their use of small airports with lower charges.

In addition, as competition in the cut-price sector increases, fares could go even lower, as the sector expands even further.

Ryanair have recently placed an order with Boeing for 100 of the aerospace firm's 737-800 models which will be brought into service over the next seven years.

During that time, Ryanair hope to have increased their destinations to offer greater European coverage, especially to business travellers, through securing slots at larger airports which will see passengers landing closer to city centres. (CL)