Menu
02/11/2009
Ryanair See Soaring Profits Rise 80%
Budget airline Ryanair has revealed a rise in first-half profits by 80% for the year.
Releasing the figures today, the company said its first half results were so strong it could reverse its long-standing strategy of rapid growth and instead distribute cash to shareholders.
The company said its second-quarter profit rose 35% by spending spent less on fuel, while net income in the three months ending in October increased to €250.5 million ($370 million) from €185.8 million a year earlier.
Other figures released by the budget airline included a 17% decrease in the average fare cost, which now stands at €39.
Ryanair's Chief Executive Officer Michael O'Leary said the results were due to the company's model and "relentless cost discipline".
However, despite the initially impressive figures, Mr O'Leary conceded there was some "distortion" inflating the results.
"These results are heavily distorted by a 42% fall in fuel costs, which has masked a significant 17% decline in average fares," he said.
"We expect average fares to decline by up to 20% during Quarters 3 and 4, which will result in both these quarters being loss making.
"Despite this our full year guidance remains unchanged and will be substantially profitable, at a time when many of our competitors are losing money, consolidating or going bust."
Mr O'Leary contended that market conditions in Ireland, the UK and Europe continued to be difficult, and were "characterised by an absence of consumer confidence".
He added that while fuel remained volatile, the budget carrier had continued to reduce airport and handling costs, through web check-in initiatives, and staff costs, with a pay freeze in both the current and coming year.
(DW/BMcC)
Releasing the figures today, the company said its first half results were so strong it could reverse its long-standing strategy of rapid growth and instead distribute cash to shareholders.
The company said its second-quarter profit rose 35% by spending spent less on fuel, while net income in the three months ending in October increased to €250.5 million ($370 million) from €185.8 million a year earlier.
Other figures released by the budget airline included a 17% decrease in the average fare cost, which now stands at €39.
Ryanair's Chief Executive Officer Michael O'Leary said the results were due to the company's model and "relentless cost discipline".
However, despite the initially impressive figures, Mr O'Leary conceded there was some "distortion" inflating the results.
"These results are heavily distorted by a 42% fall in fuel costs, which has masked a significant 17% decline in average fares," he said.
"We expect average fares to decline by up to 20% during Quarters 3 and 4, which will result in both these quarters being loss making.
"Despite this our full year guidance remains unchanged and will be substantially profitable, at a time when many of our competitors are losing money, consolidating or going bust."
Mr O'Leary contended that market conditions in Ireland, the UK and Europe continued to be difficult, and were "characterised by an absence of consumer confidence".
He added that while fuel remained volatile, the budget carrier had continued to reduce airport and handling costs, through web check-in initiatives, and staff costs, with a pay freeze in both the current and coming year.
(DW/BMcC)
Related Northern Ireland Business News Stories
Click here for the latest headlines.
20 September 2011
Gas Price Hike 'Sweetened'
The gas supplier, Firmus Energy has ended its previously announced summer price freeze and is set to increase tariffs by over 35% from 1 October - fuelling fears over 'fuel poverty' among the most needy - but also pointing to a better deal on discounts for users.
Gas Price Hike 'Sweetened'
The gas supplier, Firmus Energy has ended its previously announced summer price freeze and is set to increase tariffs by over 35% from 1 October - fuelling fears over 'fuel poverty' among the most needy - but also pointing to a better deal on discounts for users.
04 February 2005
Fuel prices cause misery for British Airways
British Airways have reported a dramatic drop in profits in the latest trading figures - £75 million, compared to £125 million in the same period last year. British Airways Chief Executive, Rod Eddington attributed the fall in profits to rising fuel costs, which he said had increased by £106 million (47.3%).
Fuel prices cause misery for British Airways
British Airways have reported a dramatic drop in profits in the latest trading figures - £75 million, compared to £125 million in the same period last year. British Airways Chief Executive, Rod Eddington attributed the fall in profits to rising fuel costs, which he said had increased by £106 million (47.3%).
01 October 2001
Government scheme tackles fuel poverty
At least 20,000 homes throughout Northern Ireland are set to benefit from the £4 million Warm Homes Scheme by the year 2004. Speaking on Monday October 1, the Minister for Social Development, Maurice Morrow said: “Tackling fuel poverty is an important priority for my Department.
Government scheme tackles fuel poverty
At least 20,000 homes throughout Northern Ireland are set to benefit from the £4 million Warm Homes Scheme by the year 2004. Speaking on Monday October 1, the Minister for Social Development, Maurice Morrow said: “Tackling fuel poverty is an important priority for my Department.
08 August 2001
Cisco’s massive drop in profits triggers FTSE fall
Internet networking giant Cisco has reported an 86 per cent drop in earnings. The results were revealed as part of the company’s third quarter profits and were in line with analyst forecasts.
Cisco’s massive drop in profits triggers FTSE fall
Internet networking giant Cisco has reported an 86 per cent drop in earnings. The results were revealed as part of the company’s third quarter profits and were in line with analyst forecasts.
20 April 2004
Good year for Tesco as profits top £1.6bn
It has been a good year for the supermarket retailer Tesco which has seen pre-tax profits soar to £1.6 billion, according to the group's full-year preliminary statement issued today. In addition to driving up pre-tax margins by 17.6%, the company said that it had slashed its debts by £600 million, down to £4.1 billion. In the UK, sales grew by 14.
Good year for Tesco as profits top £1.6bn
It has been a good year for the supermarket retailer Tesco which has seen pre-tax profits soar to £1.6 billion, according to the group's full-year preliminary statement issued today. In addition to driving up pre-tax margins by 17.6%, the company said that it had slashed its debts by £600 million, down to £4.1 billion. In the UK, sales grew by 14.
-
Northern Ireland WeatherThis Evening and Tonight:Showers, scattered in the evening, will clear by midnight leaving the night dry with clear spells. Perhaps a touch of ground frost. Cloud will spread east towards morning. Minimum temperature 2 °C.
