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20/07/2010
Ash Cloud Hits Budget Airline's Profits
Low cost carrer Ryanair has announced a drop in profits of 24%, due to the disruption caused by the volcanic ash cloud earlier this year.
The budget airline's first-quarter profits announcement saw a net profit of £117.8 million in the three months to the end of June, representing an increase of 1% on last year's figures.
However, when the cost of the cancellation of almost 10,000 flights as a result of the airspace closure to the volcanic ash cloud - nearly €50 million - was accounted for, the remaining profit fell by 24% from the previous year's figure.
The airline is still expecting to see profits rise by between 10 - 15% to more than 350 million euros for the full year.
A statement issued by Ryanair Chief Executive Michael O'Leary said: "Our Q1 profits were adversely impacted by the unnecessary closures of European airspace for 18 days in April and May. Despite these volcanic ash disruptions Ryanair continues to increase traffic, yields and profits, while most of our competitors are cutting capacity and reporting losses. Yields rose by 5% due to a 13% increase in sector length offset by price promotions launched to get people flying again after the airspace closures."
(KMcA/BMcC)
The budget airline's first-quarter profits announcement saw a net profit of £117.8 million in the three months to the end of June, representing an increase of 1% on last year's figures.
However, when the cost of the cancellation of almost 10,000 flights as a result of the airspace closure to the volcanic ash cloud - nearly €50 million - was accounted for, the remaining profit fell by 24% from the previous year's figure.
The airline is still expecting to see profits rise by between 10 - 15% to more than 350 million euros for the full year.
A statement issued by Ryanair Chief Executive Michael O'Leary said: "Our Q1 profits were adversely impacted by the unnecessary closures of European airspace for 18 days in April and May. Despite these volcanic ash disruptions Ryanair continues to increase traffic, yields and profits, while most of our competitors are cutting capacity and reporting losses. Yields rose by 5% due to a 13% increase in sector length offset by price promotions launched to get people flying again after the airspace closures."
(KMcA/BMcC)
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