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Ryanair 1Q profit advances
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August 10, 1999: 5:38 a.m. ET
Southwest-style low-cost formula boosts Irish airline as European rivals falter
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LONDON (CNNfn) - Dublin-based airline Ryanair released better-than-expected profits Tuesday, providing further evidence that European travelers are shifting to the new breed of low-cost, no-frills carriers.
Ryanair, which is modeled closely on Texas-based Southwest Airlines (LUV), reported a 17 percent rise in pretax earnings to 11 million Irish pounds ($14.9 million) in its first quarter ended June 30.
The market consensus pointed to pretax profits of about 10.7 million Irish pounds.
The result stands in stark contrast to the recent results of major carriers such as British Airways and KLM which have suffered from over-capacity in the global airline business and the intense competition from low-cost rivals such as Ryanair and easyJet.
Ryanair's first-quarter sales climbed 14 percent to 66.2 million Irish pounds while passenger numbers advanced 8 percent to 1.27 million. Expenses also rose 14 percent.
Ryanair operates a network of 34 routes from Ireland and the United Kingdom with a fleet of 23 Boeing 737s. Earlier this year it placed a $2 billion order for 35 new-generation 737-800s, and aims to grow 20 percent a year.
Shares in Ryanair (RYA), which is listed in London, New York and Dublin, advanced 1 pence to 623 pence in early London trading. 
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Ryanair
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