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Ryanair, one of the original cheap airlines, has reported a 23 per cent rise in profits during the second quarter of 2011.

The airline predicts that full year results will be better than expected. It made pre-tax profits of €463 million (£398 million) in the three months to 30 September. This is an increase from €378 on the same period last year.

However, this increase could be largely attributed to the average fare price rising by 13 per cent recently. Ryanair stated that such a rise was necessary due to a 37 per cent increase in fuel costs.

“This is a testament to the strength of Ryanair’s lowest fare/lowest cost model which delivered robust traffic and profit growth despite, significantly higher oil prices, and an economic downturn in Europe,” said Michael O’Leary, Ryanair CEO.

“The 13 per cent rise in average fares (which includes optional baggage fees) is due to slower growth, a better mix of new routes and bases, as well as rising competitor fares/fuel surcharges.”

The airline flew almost 45 million passengers in the three months up to 30 September, compared to about 40 million for the same period last year.

Ryanair claims that its annual profits could be 10 per cent higher than its previous target when the numbers become available. The half-year profits are currently up by 20 per cent to €544 million.

New routes

Last week the airline opened its 45th base at Manchester Airport as well as others based in Poland and Germany, which will begin operating in March 2012.

The new German base will be home to two permanent aircraft operating throughout 19 routes. This follows plans for a huge expansion of the airline.

(Image: Andres Rueda)

About the author

Oonagh ShielContent Manager at Cheapflights whose travel life can be best summed up as BC (before children) and PC (post children). We only travel during the school holidays so short-haul trips and staycations are our specialities!

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