05/11/2001

Ryanair profits soar despite airline industry depression

Low cost airline Ryanair has reported that its profits for the first half of 2001 have increased by 39 per cent, representing the company’s ability to overcome the negative aspect currently afflicting the airline industry.

With a corresponding increase in the numbers of passengers – up by 37 per cent to 5.3 million - Michael O’Leary Ryanair Chief Executive described the figures as “a great set of results” despite the outbreak of foot and mouth disease and the terrorist attack of 11 September.

He went on to attribute the airline’s continued positive performance as resulting from numerous factors, including a strategy of immediate and considerable price cuts in the aftermath of the attacks on the World Trade Centre.

Speaking to the BBC Breakfast programme, he added: "The airlines that have lower fares will win more and more business, while airlines such as BA, which follow a policy of increasing air fares are doomed to failure."

Mr O’Leary also outlined the possible outcome of Ryanair’s current negotiations concerning landing rights in airports throughout Europe, with the airline planning to capitalise on the gaps left behind by the abandonment of major routes by various large airlines.

"In this negative environment in Europe, Ryanair is now being courted by many more airports, some of whom would never talk to us prior to 11 September," he added. (CL)

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