Ryanair manages a profit of 105 million Euros
Ryanair today announced a full year Net Profit of €105m (- 78%) despite suffering substantially higher oil prices. Revenues rose by 8% to €2,942m as air fares fell 8% and traffic grew 15% to 58.5m.
Ryanair now claims to have grown to be the Europe’s largest airline having overtaken Air France, BA and Lufthansa’s passenger numbers and market capitalisation. Announcing these results Ryanair’s CEO, Michael O’Leary, said: “Despite the global recession and record high oil prices Ryanair’s lowest fare/lowest cost airline services again delivered traffic growth and profitability which demonstrates the fundamental strength of the Ryanair model.
To deliver a Net Profit of €105m (although a disappointing €376m decline over last year’s figure) was a robust performance during a year of record high oil prices when our fuel bill jumped by €466m (up 59%). Average fares (due to the global recession and weaker Sterling) fell by 8% to €40, but this was largely funded by a 3% reduction in non fuel operating costs.
Ancillary revenues grew by 23% to €598m. We have now achieved our target of 20% of revenues (18% last year) one year ahead of schedule. Our onboard mobile telephony service trial commenced at the end of February and is now available on over 40 aircraft based in Ireland and Italy. Early indications prove that consumers love this service and penetration rates continue to rise.
Fuel costs rose by €466m (59%) to €1.257bn and accounted for 45% of our operating costs compared to 37% in fiscal ’08. We have taken advantage of recent falls in jet fuel prices to extend our hedging programme for FY’10 to 90% for the first 3 quarters at an average price of approx. $620 per tonne and 5% of Q4 at approx. $490 per tonne. Assuming that we hedge the balance of our fuel requirements at current rates this would reduce our fuel bill by approx. €450m in FY’10. Excluding fuel, other operating costs fell by 3% on a per passenger basis.