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Ryanair announces record profit

Ryanair has announced record half year profits of €237m. Traffic grew by 29% to 18.0m passengers, yields increased by 3% and as a result total revenues rose by 33% to €946.2m. Announcing these results Ryanair’s Chief Executive, Michael O’Leary, said:

“These record traffic and profits reflect the continued successful roll-out of Ryanair’s lowest fare model despite difficult trading conditions characterised by record high fuel prices and intense competition. It also demonstrates the robustness of the Ryanair model, which delivers significant profits and passenger growth even during turbulent periods while many competitors are losing money.

As anticipated, yields were 3% higher than last year despite a 29% increase in seat capacity. These slightly higher yields reflect the multiple fuel surcharges imposed by European flag carriers, which have continued to widen the gap between their high fares and Ryanair’s lowest fares. We have again reaffirmed our commitment not to impose fuel surcharges on our passengers and reaped the benefits of this strategy in terms of significant traffic growth and slightly higher yields during the half year. Ancillary revenues grew by 40% significantly faster than the growth in passenger volumes and this year we expect that they will continue to outpace passenger growth.