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Ryanair report record profits

Ryanair have reported record profits of 503 million euros, thanks to increases in fares offsetting increases in fuel costs.

Revenues also rose by 19% to 4.3 billion euros. While fares rose by an average of 16%, traffic still grow by 5%, which helped to overcome a 30% rise in fuel costs. However, there are concerns that profits in the new financial year could still be lower.

Commenting on the figures, a spokesperson said: “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.”

The airline have now forecast annual profits of between 400 million and 440 million for the year to the end of March 2013.

Record profit levels were described as “commendable”, especially with regards to the 360 million euro increase in fuel costs.

The firm also highlighted the fact that a number of European airlines had also closed in the past year, to which they had responded by opening new bases in Budapest and expanded bases in Spain, Scandinavia and the UK.

The decision by the UK government to raise air passenger duty was also criticised by the airline, which they attributed to the 6% fall in traffic since 2007.

This was posted in Bdaily's Members' News section by Ruth Mitchell .