Ryanair increases profits despite oil costs

Ryanair today announced pretax profits of euro 123

Ryanair today announced pretax profits of euro 123.4 million for the year ending March 31st, up from euro 90 million a year earlier.

The low cost airline said it had increased revenues, passenger traffic and profitability despite higher oil prices, an economic downturn and the foot-and-mouth outbreak.

Quote
"Despite these negative market conditions, Ryanair has continued to deliver disciplined growth in fleet, new routes, traffic, revenues and profitability,"
Unquote
Chief executive
Mr Michael O'Leary

"Despite these negative market conditions, Ryanair has continued to deliver disciplined growth in fleet, new routes, traffic, revenues and profitability," said chief executive Mr Michael O'Leary in a statement.

At 8.30 a.m. Ryanair shares were trading up 2.38 per cent in London at £7.525.

READ MORE

"We are the only low-cost airline that is profitable throughout the whole year," chief financal officer Mr Michael Cawleysaid.

Mr Cawley said fuel costs had risen substantially more than sales growth , and would rise further during the current financial year due to the company's hedging policy.

Fuel costs rose 52 per cent to euro 63.5 million in the year to March 31st due to a combination of rising oil prices, increased flying hours and the weakness of the euro against the US dollar.

The company said total revenues were up 32 per cent at euro 487.4 million, compared with euro 370.1 million the previous year, and basic earnings per share increased 37 per cent to 29.61 cents.

The airline said it carried 7.4 million passengers during the year to March 31st, an increase of 35 per cent on the previous 12 months.

Mr Cawley said Ryanair was targeting passenger growth of 23-24 per cent during the current financial year.

The company, which set up a new base at Charleroi in Belgium earlier this year, is in talks with more than 40 airports about establishing a second European hub next year, Mr Cawley said.