07/04/2010

Ryanair Fees Climbing Despite Profits

Budget airline Ryanair has revealed a host of new charges for flying over the summer months despite announcing a third increase in its profit projections for the year.

Today, the airline said it would be raising its charges for putting a bag in the luggage hold to €20 per flight over the peak months before reducing it again in September.

Announcing the move this morning, Ryanair spokesman Stephen McNamarra bafflingly referred to the obvious money-spinner as a move "incentivising [sic] passengers to travel light".

In a statement released today, Mr McNamara said: "Ryanair is determined to incentivise passengers to travel light this summer by increasing our checked-in baggage fees for the months of July and August only.

"These baggage fees, which are avoidable by passengers, will apply to bookings made after midnight Wednesday for travel in July and August.

Mr McNamara added that over 70% of all Ryanair passengers would be "unaffected by these changes because they travel with no checked-in bags". However, the charges in actuality affect all flyers that wish to take more luggage than available within the restrictive hand luggage allowance.

EasyJet, Ryanair's main rival, charges £18 for a checked bag weighing up to 20kg on a return flight.

According to analysts today, assuming some 23m passengers travel during the July-September quarter and 30% of passengers check in bags, then the price hike could make Ryanair €23m.

The news comes only days after the airline announced it was raising its profit after tax projections for the year ended 31 March 2010 from €275m, to not less than €310m.

The Airline said its projections for its end of year results were as a result of "somewhat stronger than expected passenger bookings, at better than expected yields" during late February and March in the run up to the Easter holiday weekend.

(DW/GK)

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