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Ryanair posts record profits, ancillary revenues grow by 35%

06/06/2008| 10:20:00 AM| 中文

Published: 05 Jun 2008: Ryanair has announced a 20% increase in its full-year net profits after tax to a record €481m.

Published: 05 Jun 2008: Ryanair has announced a 20% increase in its full-year net profits after tax to a record €481m.

The low fares airline´s traffic grew by 20% to 51m, average fares (including bag charges) fell by 1% to €44, while revenues grew 21% to €2.714bn (for year ending on March 31). Despite a unit cost increase of 2%, due to higher staff and airport costs, Ryanair delivered an after tax profit margin of 18%.

Ancillary revenues grew by 35%, almost double the rate of traffic growth. The airline shared that in-flight mobile telephony, to be rolled out on a trial 14 aircraft from July this year, will help it to grow ancillary revenues by allowing passengers to make and receive calls and texts on their own mobile phones during flight.

Ryanair´s CEO Michael O´Leary said that the over-riding concern for airlines, passengers and investors currently is the irrational price of oil.

"Currently we face a price of $130 a barrel. Our hedging programme last year insulated us from the worst of these price rises. Unlike almost all of our competitors Ryanair remains committed to a policy of no fuel surcharges – ever. We will continue to absorb these higher oil costs, even if it means that our profits will fall in the short-term, while we continue to deliver lower fares to almost 60 million passengers. Ryanair is responding to these much higher oil prices by reducing costs in all other areas," he said.

According to O´Leary, the outlook for the coming fiscal year to March 2009 remains entirely dependent on fares and fuel prices.

"Based on forward bookings, we now believe it likely that average fares for the coming year will rise by approximately +5% and if oil prices remain at $130 per barrel, then we expect to accordingly breakeven for fiscal ´09," he said.
TAGS: Ryanair | LCC | ancillary revenues
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