Ryanair First Half Profits Up Despite Rising Costs

Budget airline Ryanair has today announced strong profit figures over the last half to the end of September, despite the impact of rising costs across various cost centres over the period underlining continuing growth within its operation.

Profits prior to tax had increased over the period to £320 million, up almost 24% from results in the previous period as a result of continued growth in sales in reach over the last six months. In spite of significant increases in competition, fuel and labour costs, the group reported both an increase in revenues and profits, despite a less than favourable medium term market outlook.

The company also saw an increase in its overall number of passengers, up by a fifth to 26.6 million over the period despite an increase in fuel costs as a result of higher oil prices, up 5% on the same time period, which has resulted in many other airlines reporting weaker performances over the last few months.

Meanwhile the company has announced that it is to grow its operation with another 130 routes over the coming six months, which it is hoped will enable it to continue to grow passenger numbers to counteract the impact of rising fuel costs and labour costs.

Whilst results for the company’s first half were strong, it is anticipated that the full force of the cost rises will begin to take their hold over the course of the next quarter which could see a significant decrease on previous years’ Q3 results despite overall strong profitability by the year end.

Speaking today on the results and the imminent future performance of the company, executive Michael O’Leary described the outlook as ‘cautious’, despite the ongoing drive towards expansion within the low cost Irish airline.

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