Budget airline Ryanair unveils record profits
Monday 21 May 2012
Ryanair boss Michael O'Leary unveiled record profits for the airline today but admitted it is unlikely there will be a repeat performance this year.
The Dublin-based carrier flew 75.8 million passengers in the year to March 31, an increase of 5% on a year earlier and helping it to lift net profits by 25% to 502.6 million euro (£405 million).
A 30% jump in fuel costs was offset by a 16% rise in average fares, partly due to the grounding of 80 aircraft over the winter, while ancillary revenues such as in-flight sales surged 11% to 886.2 million euro (£714.7 million).
Ryanair expects passenger numbers to rise by another 5% this year but with its fuel bill increasing by another 320 million euro (£258 million) it has warned profits this year were likely to be in the range of 400 million euro (£323 million) and 440 million euro (£355 million).
Mr O'Leary said the combination of rising oil prices and EU-wide recession would continue to hurt the sector following the failures over the last year of Malev in Hungary, Spanair and Cimber Sterling in Denmark.
He added: “We expect more European failures in 2012, as higher oil prices and recession continues to expose failed airline models as well as subscale or peripheral carriers.”
Mr O'Leary said that despite the rising number of airline failures, many of Europe's governments continued to treat the sector and airline passengers as a “cash cow” to fund their taxation.
He said: “UK air passenger duty has caused traffic to decline by 6% since 2007, while the UK Government's 'do nothing' policy about runway capacity in the South East is encouraging traffic and tourism to bypass high-cost London airports in favour of expanding airports in Spain, France and Holland.”
Ryanair operates more than 1,500 flights a day from 51 bases across 28 countries. It has a fleet of 294 Boeing 737-800 aircraft, with a further 11 on order, and employs 8,500 people.
Staff costs increased by 12% to 415 million euros (£334 million) during the financial year, reflecting an 11% rise in the number of hours flown and a company-wide pay hike of 2% in April last year.
Culinary experts in The Netherlands thought it was 'fresh' and 'tasty'
- 1 Marijuana use by teenagers does not result in a lower IQ or worse exam results, study finds
- 2 Watch what happened when food critics were unknowingly served McDonald's
- 3 Jimmy Carr's controversial Oscar Pistorius joke goes too far at the Q Awards
- 4 Australian café owner sparks debate after saying 'No' to having unruly children on premises
Renee Zellweger on plastic surgery: 'I'm living a more fulfilling life and I'm thrilled that perhaps it shows'
Kim Jong-un 'purge': Six North Korea officials missing for weeks 'may have been executed'
Diwali: What is the festival of lights – and how is it celebrated around the world?
Nathan Cirillo: Final pictures emerge of soldier moments before he was shot dead by Ottowa gunman
Jimmy Carr's controversial Oscar Pistorius joke goes too far at the Q Awards
Cameron is warned 'no possibility' of UK reducing immigration and that bid to bring in quota on migrant workers would be illegal
Of course, teenage girls need role models – but not like beauty vlogger Zoella
Support for EU membership 'at highest level since 1991' with most Brits wanting to stay 'in'
Thousands with degenerative conditions classified as 'fit to work in future' – despite no possibility of improvement
Residents should throw a street party and mix with immigrant neighbours, councils told
Russell Brand threatened with arrest after filming outside Fox News headquarters
iJobs Money & Business
£350 - £360 per day: Ashdown Group: SQL Developer with T-SQL, Watford, Hertfor...
120-150k: Accountancy Action: We are looking for an experienced CFO from a min...
£24000 - £28000 per annum + bonus & benefits: Ashdown Group: IT Business Syste...
£18000 - £23000 per annum + Commission: SThree: The SThree group is a world le...