RyanAir uncertain future, despite profits
by Dave on 03/09/09 at 12:56 pm
Low-cost airline Ryanair, responsible for PR stunts such as charging passengers to use airplane toilets, announced earlier this summer considerable profits, as opposed to other low-cost carriers that have been hit by recession or went bankrupt. By charging its passengers for extra luggage, airline food or checking in, the Irish airline had an increase of 550% profit in the first quarter, translating into roughly $195 million. This increase is due to cheaper fuel prices and an increase in traffic.
Still, Michael O’Leary, Chief executive officer for Ryanair, says that predictions for this year are gloomy, the price war between lowcost companies resulting in a possible decline of over 20%.
Most of our competitors have recently reported declining traffic, falling yields and substantial losses. This is accelerating the pace of airline closures and consolidations,” O’Leary said in a statement.
“Our successful roll out of new routes and bases demonstrates the fundamental strength of Ryanair’s lowest fares model which even during deep recession continues to deliver growth.”
Ryanair previously declared that it planned to cut 30 percent of its flights this winter, due to huge aviation taxes imposed by Britain’s airports.
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