Ryanair Profit Plunges 21% In First Quarter

Budget carrier Ryanair has seen its first quarter year-on-year profit fall by 21%, despite a growth in passenger numbers.

Ryanair, Europe's largest low-cost carrier, said profit for the quarter ending June 30 was 78m euros (£67m).

It said the that in the same period traffic grew 3% to 23.2 million passengers.

The company said the timing of Easter and impact from a French air traffic controllers' strike in June were contributing factors to the fall.

It said revenue per passenger rose 1% due to "strong ancillary growth".

Ryanair added that unit costs rose 4%, mainly because of a 6% increase in fuel costs.

"As previously guided, higher fuel costs and the timing of Easter led to profits falling," chief executive Michael O'Leary said.

Ryanair boss Michael O'Leary

"As ever, our outlook remains cautious for the full year as market conditions are tough with recession, austerity, high fuel costs and excessive government taxes impacting air travel demands and yields."

Total revenue jumped 5% to 1.342bn euros (£1.15bn), up from 1.284bn euros (£1.1bn) in the same period last year,

He added: "While we expect full year traffic to grow 3% to 81.5 million, we still have no visibility over next winter's yields, and on the basis that the summer yield weakness in close-in summer bookings does not continue.

"We see no reason to change our full year profit after tax guidance which remains at between 570m euros to 600m euros (£504m)."

The airline saw "ancillary revenues" grow by 25% to 357m euros (£308m) - 27% of total revenues - driven by development of reserved seating, priority boarding, and higher administration and credit card fees.

Mr O'Leary added: "We are in ongoing negotiations with MAG, the new owners of Stansted airport to reverse six years of record traffic declines, but there is no guarantee that any deal will be agreed."

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