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Airline's Profits Soar By 21-Per Cent

Posted on: Tuesday, 2 August 2005, 15:00 CDT

BUDGET airline Ryanair posted a 21-per cent rise in firstquarter profits today - despite its fuel bill more than doubling in a year.

The Irish carrier - which flies out of Prestwick Airport - was helped by a surge in passenger numbers.

They were up by almost a third on a year earlier to 8.5million in the three months to June 30.

Ryanair, which has refused to follow the lead of many of its rivals and introduce a fuel surcharge, said the charges imposed by other European carriers made its fares look more attractive, allowing it to raise ticket prices.

This helped it post betterthan-expected net profits of pounds- 44.4m.

However, Ryanair was cautious about the rest of the year as it continued to budget for the higher cost of crude oil.

It also warned of the possible impact of any further terrorist attacks in London on business.

It said bookings were down for a number of days in the aftermath of the attacks on July 7 and July 21.

During the quarter, costs rose by 6-per cent after a 112-per cent rise in fuel costs to pounds-75.8m. Total revenue rose by 35-per cent to pounds-279m.

Ryanair said it was still on track to increase passenger numbers by 27-per cent to 35m this year.

It warned higher fuel prices would force loss-making airlines out of the industry.

Source: Evening Times; Glasgow (UK)

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