newswatcher
6th Aug 2002, 08:39
Extract rom the BBC:
"Budget airline Ryanair has reported a spectacular jump in profits, far exceeding analysts' expectations. The company said on Tuesday that profits for the three months to late June came in at 39 million euros ($38.4m; £24.2m) after tax, 68% up on the same period last year. The figure was nearly double the 35% increase forecast by analysts.
But Ryanair warned that higher costs during the April to June period last year, when the company launched a number of new routes, had flattered the year-on-year comparison.
"We will not repeat a 68% growth in net profits in (the next three months) ," Ryanair chief executive Michael O'Leary said in a statement.
In the City, Ryanair shares were marked 2 pence higher to 384.5p in early trade.
The no-frills airline's performance during the latest three month period was buoyed by a 38% increase in passenger numbers, with total sales up 29% on the year at 194.3 million euros.
Ryanair said it had placed firm orders for three new Boeing aircraft to help it cope with continued growth.
........................................................
The airline also plans to expand its home base at Dublin airport, where the Irish government recently approved plans for a second terminal.
.................
Analysts say the sector is currently enjoying an early spurt of growth, but predict that the increase in passenger numbers will taper off in the next two years.
The no-frills sector is already showing some signs of consolidation, with EasyJet buying out former BA subsidiary Go in a £400m deal earlier this year.
The EasyJet-Go merger, which looks set to displace Ryanair as Europe's biggest no-frills airline, is likely to put the Irish carrier under added competitive pressure.
Ryanair's public image was tarnished earlier this year when a court ordered it to pay damages for failing to honour a competition prize it had awarded to its one-millionth passenger.
It has also faced allegations that its pilots are forced to work under such pressure that safety could be compromised."
"Budget airline Ryanair has reported a spectacular jump in profits, far exceeding analysts' expectations. The company said on Tuesday that profits for the three months to late June came in at 39 million euros ($38.4m; £24.2m) after tax, 68% up on the same period last year. The figure was nearly double the 35% increase forecast by analysts.
But Ryanair warned that higher costs during the April to June period last year, when the company launched a number of new routes, had flattered the year-on-year comparison.
"We will not repeat a 68% growth in net profits in (the next three months) ," Ryanair chief executive Michael O'Leary said in a statement.
In the City, Ryanair shares were marked 2 pence higher to 384.5p in early trade.
The no-frills airline's performance during the latest three month period was buoyed by a 38% increase in passenger numbers, with total sales up 29% on the year at 194.3 million euros.
Ryanair said it had placed firm orders for three new Boeing aircraft to help it cope with continued growth.
........................................................
The airline also plans to expand its home base at Dublin airport, where the Irish government recently approved plans for a second terminal.
.................
Analysts say the sector is currently enjoying an early spurt of growth, but predict that the increase in passenger numbers will taper off in the next two years.
The no-frills sector is already showing some signs of consolidation, with EasyJet buying out former BA subsidiary Go in a £400m deal earlier this year.
The EasyJet-Go merger, which looks set to displace Ryanair as Europe's biggest no-frills airline, is likely to put the Irish carrier under added competitive pressure.
Ryanair's public image was tarnished earlier this year when a court ordered it to pay damages for failing to honour a competition prize it had awarded to its one-millionth passenger.
It has also faced allegations that its pilots are forced to work under such pressure that safety could be compromised."