Low-cost carrier Ryanair has announced a 25 per cent increase in profits, after passenger numbers were boosted by holidaymakers looking for budget-friendly flights.
The 5 per cent increase in the airline’s traffic (up to 76m), from March 2011 to March 2012, could partly be attributed to travellers looking to reduce their holiday costs amid the economic downturn.
In a year-on-year comparison, profits after tax leaped by 25 per cent from €401m to €503m. But despite the positive results for the airline, Ryanair warned that increases in fuel prices and the ongoing Eurozone crisis could mean that profits take a sharp fall over the next year. This would be the first time that profits have dipped since the start of the financial crisis in 2009.
Ryanair’s fuel bill has already increased to more than €360m, as oil prices increased by 16 per cent. As a result, the airline has forecast profits in 2013 to fall to between €400 million and €440 million.
“We remain concerned about next winter as we have zero yield visibility but expect recession, austerity, currency concerns and lower fares at new and growing bases in Hungary, Poland, provincial UK, and Spain will make it difficult to repeat this year’s record results,” said Michael O’Leary, the chief executive.
“Despite a rising number of airline failures and record airline losses, many of Europe’s governments continue to treat aviation (and airline passengers) as a cash cow to fund their taxation and/or policy failures.”
(Image: KGyST)
