unmanned transport
1st Jun 2005, 18:00
Wednesday June 1, 2005
Source: ATW.
Ryanair reported an adjusted net profit after exceptional costs and goodwill of €268.9 million ($330.9 million) for the financial year ended March 31, a 19% increase compared to the adjusted net profit of €226.6 million in the previous year.
"We can think of no better way to celebrate Ryanair's 20th birthday than to announce another year of record traffic and record profits, with after-tax margins at an industry leading 20%. Our robust trading performance over the past 12 months, despite intense competition and significantly higher oil prices, reaffirms the unique strength of Ryanair's lowest cost model in Europe," CEO Michael O'Leary said.
Total operating revenue increased 24% to €1.34 billion, outpacing the 19% growth in passengers carried to 27.6 million, as average fares rose 2% and ancillary revenues grew 39% to €208.5 million. Load factor improved 3 points to 84%. Total operating expenses climbed 25% to €1 billion owing to higher fuel costs--which jumped 52%--route charges and airport and handling costs associated with the growth of the airline. Consequently, operating profit increased 22% to €329.5 million.
O'Leary said that "contrary to initial expectations," average yield for the 12 months rose 2% despite a 16% increase in capacity. He said the unexpected growth in yield was owing partially to the lower comparables last year, when yields fell 14%, and continuing capacity reductions by European flag carriers in markets where they compete with Ryanair. However, "most of our yield growth was due to multiple fuel surcharges imposed by the flag carriers on short-haul passengers, which have further widened the gap between their high fares and our low fares."
Looking ahead, O'Leary said he is "a touch more optimistic" for the next 12 months than he was at the same time last year. But he warned that higher oil prices will continue to impact Ryanair's cost base over the coming 12 months. The carrier is unhedged for the remainder of this summer but recently hedged 75% of its winter fuel requirement at rates equivalent to $47 per barrel "in order to remove some cost uncertainty during the volatile winter period." He also anticipates that the higher costs will be offset partially by a "slightly more benign" yield environment.
Source: ATW.
Ryanair reported an adjusted net profit after exceptional costs and goodwill of €268.9 million ($330.9 million) for the financial year ended March 31, a 19% increase compared to the adjusted net profit of €226.6 million in the previous year.
"We can think of no better way to celebrate Ryanair's 20th birthday than to announce another year of record traffic and record profits, with after-tax margins at an industry leading 20%. Our robust trading performance over the past 12 months, despite intense competition and significantly higher oil prices, reaffirms the unique strength of Ryanair's lowest cost model in Europe," CEO Michael O'Leary said.
Total operating revenue increased 24% to €1.34 billion, outpacing the 19% growth in passengers carried to 27.6 million, as average fares rose 2% and ancillary revenues grew 39% to €208.5 million. Load factor improved 3 points to 84%. Total operating expenses climbed 25% to €1 billion owing to higher fuel costs--which jumped 52%--route charges and airport and handling costs associated with the growth of the airline. Consequently, operating profit increased 22% to €329.5 million.
O'Leary said that "contrary to initial expectations," average yield for the 12 months rose 2% despite a 16% increase in capacity. He said the unexpected growth in yield was owing partially to the lower comparables last year, when yields fell 14%, and continuing capacity reductions by European flag carriers in markets where they compete with Ryanair. However, "most of our yield growth was due to multiple fuel surcharges imposed by the flag carriers on short-haul passengers, which have further widened the gap between their high fares and our low fares."
Looking ahead, O'Leary said he is "a touch more optimistic" for the next 12 months than he was at the same time last year. But he warned that higher oil prices will continue to impact Ryanair's cost base over the coming 12 months. The carrier is unhedged for the remainder of this summer but recently hedged 75% of its winter fuel requirement at rates equivalent to $47 per barrel "in order to remove some cost uncertainty during the volatile winter period." He also anticipates that the higher costs will be offset partially by a "slightly more benign" yield environment.