01/02/2010

Ryanair Reveals Profit Increase

Despite a tough year for the tourism industry, Ryanair has announced its profit forecast for the year has increased.

The company said today that it expects to see profits of €275million from the last financial year to the end of March. That compares to its previous guidance at the lower end of the €200-300m range.

The airline reported a better than expected loss of €10.9m for the three months to the end of December, compared to a loss of €101.5m the same time the previous year.

Revenues over the three months rose by 1% to €612m, as 14% growth in its traffic numbers was offset by a 12% fall in average fares.

Announcing the results Ryanair’s CEO Michael O’Leary said: "Market conditions remain difficult, although the increasing pace of consolidation and closures among our competitors allied to Ryanair’s continuing fleet expansion will lead to further market share gains this year in particular in Italy, Scandinavia, Spain, and the UK.

"Our quarter three results were marginally ahead of expectations as a better mix of new routes and bases meant that yields fell by 12% rather than the up to 20% fall we previously guided.

"Despite the depth of the current recession Ryanair will continue to grow traffic and profits (while most other airlines lose money) for the benefit of our passengers, our people, and our shareholders."

Michael O'Leary also confirmed today that in December the budget airline would be terminating its discussions with Boeing for an order of up to 200 aircraft.

The order had originally caused some controversy after Ryanair was accused of not honouring an earlier deal.

(DW/BMcc)

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