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Mon 11 Nov 2008Ryanair profits fall 47% on rising fuel costs

Ryanair said its after tax profits were down 47 per cent at €215 million for the first half of the year as its fuel costs more than doubled.

The airline said its fuel bill rose to €788.5 million from €392.7 million while passenger traffic increased 19 per cent to 32 million in the six months to the end of September.

Despite this the airline remains “confident” of breaking even this year, Chief Executive Officer Michael O'Leary said in the statement. “Next year I think profits will rebound strongly.”

“Fuel prices have been much higher, and our profits have been lower,” Mr O'Leary said in a Bloomberg Television interview.

The average price of jet fuel in northern Europe was 65 per cent higher than a year earlier during the quarter, though has declined since then.

Over the period average fares including charges were 4 per cent lower at €47. Revenues were 16 per cent higher at €1.8 billion.

Net income for the three months ended September 30th dropped to €185.8 million ($239.5 million) from €268.9 million a year earlier. Analysts had predicted profit of €182 million.

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