31/07/2007

Ryanair Announces Record Profits

Ryanair has announced record first quarter profits of 139 million euros, an increase in revenue of 20% on last year's figures.

The latest report showed that passenger number numbers rose by 18% to reach 12.6 million and revenues increased by 22% to 693 million euros.

The airline also revealed that unit costs rose by 5%, mainly due to higher fuel, staff and airport costs.

Ryanair CEO Michael O'Leary said: "These record Q1 profits reflect an 18% growth in passenger volumes, flat yields, and strong growth in ancillaries. Ancillary revenues grew by 53% to 117.1 million due to improved penetration of car hire, hotels, travel insurance, onboard sales and excess baggage revenues. Ancillaries account for 17% of total revenues and we expect this will rise to 20% over the next three years.

"Unit costs rose by 5% due primarily to the doubling of airport charges at Stansted and higher charges at Dublin airport. Staff costs rose by 34% to 75.9 million euros due to volume growth and increased cabin crewing ratios. We continue to focus aggressively on costs and anticipate that unit costs for the remainder of the year will grow by 5% somewhat lower than the 6% to 7% previously guided."

Mr O'Leary added: "We will continue to grow over the winter period, however, due to the softness in yields and the doubling of both UK APD and costs at Stansted, we plan to reduce the number of aircraft operated ex Stansted this winter by almost 20% from 40 to 33.

"This will mean reduced frequency of temporary cessation of services on routes which would be loss making due to Stansted's higher airport charges. Consequently passenger volumes this winter will now grow at a slower rate (by 18% to 50 million) than the 24% to 52 million previously guided. These capacity reductions should being more stability to yields, whilst, at the same time, reducing operating costs and eliminating losses on these non profitable winter routes at Stansted."

(KMcA/SP)

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