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Ryanair defies terror slump
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February 5, 2002: 3:37 a.m. ET
Budget airline posts 35% jump in profit as demand stalls elsewhere
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LONDON (CNN) - Ryanair, Europe's biggest low-cost airline, defied the downturn in passenger traffic following September 11 to post a jump in third quarter profit.
Low-cost airlines -- like Ryanair and Easyjet -- are expanding their fleets as demand continues to grow, even as traditional national flag carriers cut routes, jobs, and ground aircraft to counter the impact of an economic slowdown and the effects of September 11.
While traditional "full-services" carriers saw passenger numbers tumble by about a third after the attacks on the U.S., Ireland's Ryanair and EasyJet are both forecasting annual passenger growth of 25 percent.
Net income rose to  28.8 million ($24.9 million), or 3.92 cents a share, in the three months to December 31, from 21.3 million, or 3 cents a share, a year ago. Sales rose 18 percent to 136 million.
"These are a very strong set of results which underline the resilience of Ryanair's unique low fares model," said Chief Executive Michael O'Leary.
Ryanair said it carried 2.7 million passengers during the period, up 30 percent, and filled 79 percent of its seats, an increase of 3 percent in the same period a year ago.
The Irish airline has performed better than many national carriers, like British Airways and KLM of the Netherlands, which are heavily dependent on transatlantic routes for profits. Meanwhile, budget airlines have slashed fares on European routes forcing traditional airlines to concede territory.
British Airways, Europe's biggest airline, posted a third-quarter loss of £144 million ($204 million), while sales slumped 20 percent to £1.8 billion. The company is expected to announce plans to drastically slash its workforce and routes from Gatwick airport, which serves as its European hub.
"It was important to respond to terrorism by stimulating air travel and promoting consumer confidence," said O'Leary.
"The travelling public responded to the lower fares in huge numbers with the result that we carried more than 10 million passengers in a calendar year for the first tine in our history."
"As high fare European airlines cut routes and trim services, more and more growth opportunities are open to us," O'Leary added.
Ryanair has ordered 150 737-800 aircraft from Boeing, valued at about $9.7 billion, as it expands its fleet and challenges Germany's Lufthansa in its owns backyard. 
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