Ryanair reports 25 percent jump in earnings

DULIN, Ireland – Dublin-based Ryanair, which is the largest operator out of Stansted Airport, said it carried 28million passengers in the three months to June 30, a 16% increase on the same period a y

DULIN, Ireland – Dublin-based Ryanair, which is the largest operator out of Stansted Airport, said it carried 28million passengers in the three months to June 30, a 16% increase on the same period a year earlier.

Revenue was 10% higher at 1.653m euros (ยฃ1.167m) and profit after tax was 25% ahead at 245m euros (ยฃ173m).

Ryanair said the increased passenger total reflected a six-point improvement in its load factor (an industry measure of how full an operatorโ€™s planes are) to 92%.

Ryanair boss Michael Oโ€™Leary said: โ€œOur mix of low fares, best on time performance (91% in Q1) and enhanced customer experience under our Always Getting Better (AGB) programme, continues to attract millions of new customers.

โ€œAt the same time our focus on cost (Q1 unit costs fell 7%) enables us to pass on lower fares to customers. Q1 average fare fell 4% to just โ‚ฌ45, due to the timing of Easter, weaker April yields and lower checked bag penetration as more families and business customers enjoy discounts on their luggage or benefit from our free second carry-on bag policy.โ€

Ryanair added that it was the success of its AGB strategy which had prompted its decision earlier this month to accept International Airlines Groupโ€™s offer for its 29.8% stage in Aer Lingus.

Its original plan for Aer Lingus was to use it as a mid-prices brand to offer competition at primary airports, which this had been overtaken by the ABG programme under which Ryanair had now entered a number of primary airports in its own right.

โ€œAs the Ryanair brand develops and continues to grow strongly, the original rationale for acquiring Aer Lingus no longer exists,โ€ it added. โ€œIf the IAG offer is successful, then we would expect to receive these proceeds in mid/late September and the board will consider our use of the proceeds around the time of our AGM.โ€

However, Ryanair said it would continue to oppose the UK Competition and Markets Authorityโ€™s โ€œbaselessโ€ ruling in 2013 that Ryanair should have to sell its stake in Aer Lingus, and the CMAโ€™s recent rejection of a request by Ryanair to review that decision.

Ryanair said the divestment decision โ€œwas based on the invented theory that no other airline would bid for Aer Lingus while Ryanair was a minority shareholderโ€. It added: โ€œThis has been hopelessly exposed by IAGโ€™s current offer for Aer Lingus, even while Ryanair was its largest single shareholder.โ€

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Linda Hohnholz

Editor in chief for eTurboNews based in the eTN HQ.

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