Ryanair reports 45% passenger growth
Europe’s largest low cost airline, Ryanair, has today reported record traffic and profit growth over the past three months.
The airline revealed that in the three months ending June 30th 2003, passenger traffic grew by 45% to 5.1 million. However, revenues from each passenger were reduced due to the launch of 50 new routes, two new bases and the weakness of Sterling to the Euro.
The company’s total revenues rose by 26% and its Adjusted Net Profit increased by 12% to a record ?43.8 million compared to ?39 million in the same period a year ago.
Ryanair’s Chief Executive, Michael O’Leary commented, ‘These record quarterly results reflect the continuing success right across Europe of Ryanair’s low fares formula. During what B.A. last week described as the most testing period in aviation history, we continue to drive down airfares, reduce costs, but at the same time deliver increased profits and exceptional margins.’
Mr O’Leary launched an attack on some competitor airports and airlines which he claimed have initiated ‘spurious legal actions’. He expressed disappointment that an administrative court in Strasbourg could recently require the Strasbourg Chamber of Commerce to terminate the company’s low cost agreement with the local airport within two months.
He argued that Ryanair was the only airline operating the London-Strasbourg route with six times the traffic of Air France who previously ran the route.
Mr O’Leary added, ‘It is ludicrous that Air France having withdrawn ten international services from Strasbourg Airport over the last seven years (one of which was the London route) can win a local legal action which prevents 200,000 European consumers benefiting from low fare services between London and Strasbourg. We believe these passengers will not travel on a high fare Air France service which forces them to go via Charles de Gaulle to get to London or Strasbourg. This decision is wrong, it is bad for the regional airports of France, it is bad for regional tourism in France and could result in some 200 jobs being lost in the Strasbourg and Alsace region.’
He said that the only ‘grey cloud’ on the commercial horizon was the continuing EU investigation of the company’s low cost base at Brussels Charleroi Airport. The Commission is examining some of Ryanair’s destinations after claims that they are not near the cities the company says they are.
Mr O’Leary stated, ‘The European Commission, which has consistently promoted and championed deregulation and competition in inter-EU air travel needs to send a strong signal to the market that it will not allow political lobbying or local court orders to prevent Ryanair (and other low fares airlines) making air travel more affordable for consumers all over Europe.’
