First-quarter net profits for Irish airline Ryanair have leapt a massive 550 per cent on the back of lower fuel prices, it announced yesterday.
Net profits for the first three months of 2009 totalled Ôé¼136.5 million (┬ú118 million) compared with Ôé¼21 million (┬ú18 million) in the same quarter a year ago, thanks to a 42 per cent fall in the cost of fuel.
Sales, however, remained flat at Ôé¼774.7 million (┬ú668 million), with an 11 per cent rise in passenger numbers virtually cancelled out by an average 13 per cent fall in fares.
The airline has said it will continue to discount average fares over the coming months in order to boost passenger numbers and maximise its revenue from luggage charges, car and hotel bookings and in-flight sales.
It will also keep expanding its routes, particularly in Norway and Portugal.
The airline has said that further reductions in fares will adversely affect annual net profits, which are now expected to come in at the lower end of the Ôé¼200 to Ôé¼300 million range forecast.
In a statement, CEO of Ryanair Michael OÔÇÖLeary said: ÔÇ£Many of our competitors are guiding increased losses and declining traffic or in some cases (such as Aer Lingus) have refused to give any guidance at all.
ÔÇ£Ryanair will be the only major European airline to deliver passenger and profit growth in the current year.
ÔÇ£The winners in a deep recession will always be those companies like Aldi, Lidl, McDonalds, and Ryanair who offer the lowest prices and the best service to consumers. We will continue to expand as others fail.ÔÇØ
