Ryanair announces record profits

Ryanair, an Ireland-based low-cost airline, has announced record pre-tax profits for the last financial year.

The airline made a profit of €650.9 million in 2012/13, a 14.6 percent increase on the €568 million that it made in the previous year. An increased number of passengers and increased revenue were the primary reasons given for the record figures.

The company’s revenue increased by 13 percent to €4.88 billion for the last financial year, and it carried a total of 79.3 million passengers, an increase of 5 percent on the previous year. Fuel costs, which rose by 18 percent year-on year, could have impacted negatively on the company’s performance, but this was more than compensated for by a 6 percent increase in average fares.

Ryanair’s chief executive, Michael O’Leary, said, ‘Ryanair continues to expand, making meaningful share gains in many of Europe’s largest markets. In addition to being the number one passenger airline in Ireland and Spain, we have in the last 12 months overtaken Alitalia and LOT to become Italy’s and Poland’s number one airline, respectively.

‘Ryanair believes that its unique low cost advantage will enable the airline to achieve a 20 per cent share of the European short-haul market over the next 5 years, particularly given that many of Europe’s high fare incumbents are restructuring and cutting capacity.’

With regards to future growth, O’Leary was optimistic that his company could benefit from expansion at Stansted airport now that it is owned by Manchester Airports Group. Ryanair had previously reduced its capacity at the airport while it was owned by BAA in protest at the fees that it was charging.

O’Leary said, ‘We are in active discussions with the new owners of Stansted airport and the new management at Dublin airport and while no agreements have yet been reached, if a competitive cost base emerges, then we could restart growth at one or other airports as early as September 2013.’