Ryanair, an Ireland-based low cost airline, has announced an increase in its first quarter revenues for the period ended June 30, 2012.
The airline has reported that new bases in Billund, Budapest, Manchester, Palma, Paphos and Wroclaw are reporting high load factors, at very low fares. The new bases, as well as the ones about to open, are ready to provide the airline with new opportunities to grow across Europe.
The fiscal first quarter revenues have increased by 11 percent to €1,284m, while traffic increased by 6 percent and average fares increased by 4 percent, from the first quarter last year.
The airline chief executive officer, Michael O’Leary, said, ‘As we previously guided, significantly higher fuel costs caused Q1 profits to fall by €40m (from €139m last year’s) to €99m.
Our 6 percent traffic growth combined with a 4 percent rise in average fares led to an 11 percent increase in Revenues. Ancillary sales grew by 15 percent to €286m (outpacing traffic growth) accounting for 22 percent of total revenues.
Operating unit costs rose 10 percent as fuel increased 27 percent (by €117m) to €544m. Fuel amounted to 47 percent of total operating costs.
We were hedged at $820 pt in Q1 last year, compared to $1,000 pt this year, a price increase of 22 percent. As a result Q1 will suffer the largest fuel cost rise in FY13 as the pricing differential narrows significantly over the remaining three quarters of the year.’
The airline has previously made a bid to acquire Aer Lingus, an Ireland-based airline company, for an all cash offer of €1.30 per share. The company expects the acquisition, which is currently awaiting approval from the EU Commission, to improve its bottom line still further.