Ryanair's profits up but turbulence predicted
Updated on 05 June 2007
Ryanair is predicting turbulence despite full-year profits rising 33 per cent after a checking in charge for baggage was introduced.
The budget airline said pre-tax profits rose to £271.6 million after tax from £204.2 million last year.
Chief executive Michael O'Leary said growth is predicted to fall to about five per cent this year because of weaker ticket prices and the doubling of air passenger taxes.
The airline said in a statement: "Whilst we remain confident that traffic over the coming year will grow by 22 per cent to over 52 million passengers, we believe that if trading conditions continue to be soft, then yields will fall by up to 5 per cent compared to last year's figure.
"As a result we expect profit growth over the coming year to be more modest and to rise by approximately 5 per cent...We believe that the company and our shareholders should remain cautious and conservative."
The carrier said fares increased by 7 per cent on average in the year to March 31, due in part to the extra fees it introduced last spring for excess baggage and luggage put in the hold.
The profits were also attributed to the purchase of 30 new aircraft and the opening of 153 new routes, including three new bases at Marseille, Madrid and Bremen.
Ryanair said it will increase its fleet by 30 aircraft over the coming year and will launch at least three new bases, including Dusseldorf-Niederrhein and Bristol, and expects to open more than 50 new routes.
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