Menu
04/06/2008
Ryanair Fares To Stay Low Despite Soaring Fuel Costs
Ryanair is planning to ground up to 10% of his fleet this winter in a move to counter crippling airport charges.
While the Irish budget airline saw full year after-tax net profits rise by 10% - other reports have cited 20% - to £381 million, the doubling of landing and handling charges by operator BAA still requires the carrier to cut costs.
Ryanair Chief Executive Michael O'Leary has told Sky News that he will not pass the soaring fuel costs to passengers but that if oil stays at the current price – at around $130 a barrel – the firm will only "break even" in 2009.
"Our fares will stay low but our profits will fall," he said.
Other measure taken to protect the company's profitability are a company wide salary freeze and job cuts at its Dublin call centre.
British Airways (BA) has already increased fuel surcharges.
A spokesman for BA said that the bill for fuel costs was expected to be £3 billion in the current financial year, which is 1 billion higher than last year.
Ryanair has carried 50.9 million passengers during the past year, which is 20% more than 2007.
Mr O'Leary has called for the "break up of the UK's BAA airport monopoly" in the belief that it will bring about "real competition" and improve passenger services and lower airport charges".
On Monday, the International Air Transport Association said that it may "rack up a net loss of $6.1 million" if the oil price remains stagnant.
See: Ryanair Flying High - For Now
(DS)
While the Irish budget airline saw full year after-tax net profits rise by 10% - other reports have cited 20% - to £381 million, the doubling of landing and handling charges by operator BAA still requires the carrier to cut costs.
Ryanair Chief Executive Michael O'Leary has told Sky News that he will not pass the soaring fuel costs to passengers but that if oil stays at the current price – at around $130 a barrel – the firm will only "break even" in 2009.
"Our fares will stay low but our profits will fall," he said.
Other measure taken to protect the company's profitability are a company wide salary freeze and job cuts at its Dublin call centre.
British Airways (BA) has already increased fuel surcharges.
A spokesman for BA said that the bill for fuel costs was expected to be £3 billion in the current financial year, which is 1 billion higher than last year.
Ryanair has carried 50.9 million passengers during the past year, which is 20% more than 2007.
Mr O'Leary has called for the "break up of the UK's BAA airport monopoly" in the belief that it will bring about "real competition" and improve passenger services and lower airport charges".
On Monday, the International Air Transport Association said that it may "rack up a net loss of $6.1 million" if the oil price remains stagnant.
See: Ryanair Flying High - For Now
(DS)
Related Irish News Stories
Click here for the latest headlines.
03 November 2008
Ryanair Profits Stall
Although budget airline Ryanair is still expected to break even over the full year, as lower fares would be largely offset by the recent reversal in fuel costs, the company is likely to be loss-making over the next six months. This follows forecasts of a drop in average fares of between 15% and 20%.
Ryanair Profits Stall
Although budget airline Ryanair is still expected to break even over the full year, as lower fares would be largely offset by the recent reversal in fuel costs, the company is likely to be loss-making over the next six months. This follows forecasts of a drop in average fares of between 15% and 20%.
02 June 2009
Ryanair Flies Low
The budget airline Ryanair has revealed financial returns showing a major nosedive in operating profits. Ryanair plunged into the red by €169.2 million (£145.9m) in the year to March after being hit with a 59% hike in its fuel bill.
Ryanair Flies Low
The budget airline Ryanair has revealed financial returns showing a major nosedive in operating profits. Ryanair plunged into the red by €169.2 million (£145.9m) in the year to March after being hit with a 59% hike in its fuel bill.
29 April 2015
Motor Fuel Tax Having 'Profound Effect' on Domestic Tourism - AA
Motor fuel tax is having a "profound effect" on domestic tourism, according to AA Hospitality Services. The consumer services business carried out a survey asking motorists how pump prices affect will likely affect their leisure travel in the year ahead.
Motor Fuel Tax Having 'Profound Effect' on Domestic Tourism - AA
Motor fuel tax is having a "profound effect" on domestic tourism, according to AA Hospitality Services. The consumer services business carried out a survey asking motorists how pump prices affect will likely affect their leisure travel in the year ahead.
07 October 2014
Delays At Airport After Planes Clip On Runway
Minor delays were caused at Dublin Airport this morning after two Ryanair flights clipped each other while taxing to a runway. According to witnesses one plane lost a small section of its wing when it clipped another plane. No one was injured in the incident and the airport quickly returned to normal.
Delays At Airport After Planes Clip On Runway
Minor delays were caused at Dublin Airport this morning after two Ryanair flights clipped each other while taxing to a runway. According to witnesses one plane lost a small section of its wing when it clipped another plane. No one was injured in the incident and the airport quickly returned to normal.
29 May 2009
Ryanair Announce Win Over 'Scraping'
Ryanair have announced that a Hamburg court has upheld an earlier decision to grant Ryanair an injunction preventing 'scraping' of the Ryanair website.
Ryanair Announce Win Over 'Scraping'
Ryanair have announced that a Hamburg court has upheld an earlier decision to grant Ryanair an injunction preventing 'scraping' of the Ryanair website.
-
Ireland WeatherThis Evening and Tonight:It will be cloudy with a spell of heavy rain pushing south through late evening and the early hours, soon followed by some clear spells. Minimum temperature 6 °C.
