Ryanair returns to profit

| June 1, 2010 | 0 Comments
Ryanair returns to profit

Budget airline Ryanair has today announced it returned to profit for the year to March after reporting its first annual loss a year ago.

The airline unveiled pre-tax profits of €341 million (£289 million) for the year and said it intends to pay a one-off dividend to shareholders totalling €500 million - the first one it has paid.

“We can be proud of delivering a 200% increase in profits and traffic growth during a global recession when many of our competitors have announced losses or cutbacks, while more have gone bankrupt,” it said in a statement.

The results buck the trend in an industry which has been devastated by the economic downturn, which led to a slump in demand as fewer people travelled by air.

Many airlines went bust during the downturn, not just due to a fall in demand but also as a result of higher fuel prices.

However, the volcanic ash cloud from Iceland is also set to have a negative impact on the industry after the International Air Transport Association (IATA) recently reported that international passenger traffic fell in April as flights were hit.

The ash cloud has meant the recovery in the airline industry has taken a knock as flights were cancelled throughout the month.

Ryanair’s results do not include the disruption from the Icelandic volcanic ash, which will cost it an estimated €50 million.

However, Ryanair said passenger numbers grew by 14% on last year, while revenue rose 2%.

The airline, which recently announced it would charge £1 for its passengers to use the toilet, said its outlook for the coming year was positive, predicting an 11% increase in passengers numbers, and a 10% to 15% rise in profits.

In related news, British Airways, which is currently under pressure due to cabin crew strike action, recently reported a record £531 million annual loss.

Tags: , buck the trend, , , passenger numbers, , , , , Ryanair

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