19/11/2001

Go profits from crisis in airline industry

Budget airline Go has revealed a 51 per cent rise in pre-tax profits following a half-year performance in direct contrast to the financial fortunes of most of the world’s airlines.

The company’s profits rose to almost £17 million for the six months to 30 September, with passenger figures now standing at two million, representing an increase of just over 40 per cent. Go also revealed that three-quarters of its ticket sales are now made through the internet.

While most major players in the airline industry have been hard hit this year – with many going out of business altogether – the fortunes of budget airlines such as Go, Easyjet and Ryanair have taken a different turn. In the wake of the terror attacks on 11 September, the three firms immediately cut fares in an attempt to maintain a steady number of passengers. The move appears to have paid off, with Ryanair and Easyjet also recently announcing positive financial performance for the period. Future predictions for each company’s performance are also likely to remain positive for some time, as the discount airlines take over routes vacated by other companies.

Other good news for the sector saw airport operator TBI – which controls Luton, Cardiff and Belfast airports – reporting a profit increase of 50 percent (or £21.4 million) for the first half of the year, mainly due to the selling of a stake in Luton airport earlier in 2002. (CL)

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