Ryanair profits soar 28% as it warns Boeing on 737 pricing
Dateline: Wednesday August 08, 2001
Repeating the success enjoyed by its North American low-fare counterparts Southwest Airlines and WestJet, Ryanair shrugged off the effects of the business travel downturn and posted record profits for its fiscal first quarter ended June 30.
The budget airline had after-tax earnings of eur23.2 million ($20.5 million), up 28% over
eur18.1 million earned in the year-ago period. "Ryanair's strong growth…reflects the
successful rollout of our low-fares formula on 13 new routes across Europe," said CEO
Michael O'Leary. "We continue to grow traffic in both new and existing markets because Ryanair remains the only airline in Europe which guarantees its fares will be the lowest."
Operating revenues rose 31% to eur150.8 million on a 42% increase in passengers to
2.4 million offset by lower yields, while operating expense climbed 32% to eur122.1
million. Operating profit jumped 29% to eur28.8 million from eur22.3 million.
Ryanair also announced it has cancelled options on five 737-800s scheduled for
delivery between and March and May 2003 and warned that it could cancel 12 other
737s due in 2004-05 "unless pricing begins to reflect the current market realities." The
carrier added that it is in "active discussions" to purchase up to 50 used 737-300s and dash 400s, "which will adequately meet our fleet expansion from 2003 onwards." [/quote]