|
Ryanair 1Q profit climbs
|
 |
August 9, 2000: 9:01 a.m. ET
First-quarter earnings jump 31% as passenger numbers soar
|
LONDON (CNNfn) - Ryanair Holdings PLC said Wednesday that first-quarter earnings climbed 31 percent as Europe's most profitable airline added more routes and passenger numbers soared with fares as low as £9 ($13.50).
The Irish carrier said net income rose to  20.4 million ($18.3 million), or 28.76 cents per share, from 15.5 million, or 23.06 cents per share, in the year-earlier period. Sales rose 37 percent to 115 million.
Ryanair -- in its 11TH year of profitability - said pretax profit rose 29 percent to 18.1 million, beating expectations.
Passenger numbers rose 32 percent to 1.7 million. The company is aiming to fly 7 million passengers this year, to become Europe's fourth- or fifth-largest airline.
More than 47 percent of its shareholders are based in the United States.
 The company, which models itself on U.S. low cost carrier Southwest Airlines Inc. (LUV: Research, Estimates), has been a constant thorn in the side of European airlines undercutting prices by flying to secondary airports. Some routes, such as London to Stockholm, are advertised as low as £9 round-trip.
Ryaniar has also hedged fuel cost for the next six months and interest rates for the next 10 years, Chief Executive Michael O'Leary told CNNfn.
Oil prices have been a major issue with airlines. British Airways PLC reported a 65 percent slide in first-quarter profit, hammered by fuel costs.
O'Leary said he welcomes any planned merger between BA (BAY) and KLM Royal Dutch Airlines, saying the combination of the two carriers' low-cost airlines, GO and Buzz, which were introduced to undermine Ryanair and EasyJet Airline Co, would not pose a threat.
He said the airline told the European Commission, the executive arm of the European Union, that any combination must be matched by a reduction of take-off and landing slots at London airports.
Ryanair launched 10 new routes in the quarter as it took delivery of five more Boeing 737-800 series aircraft, and is taking more bookings over the Internet and reducing commissions to travel agents.
Shares in Ryanair fell 4 pence, or 0.7 percent, to 551 pence in London at midday. 
|
|
|
|
|
|
Ryanair
|
Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney
|
|
|
|
 |
|
