Oil prices hit Ryanair
LOW-cost airline Ryanair which is to axe its Teesside-Dublin route from July - has turned a healthy profit into a loss on the back of soaring oil prices.
For the year ended March 31, the company made an operating loss of 180.5m euros after making 438.9m euros profit in the corresponding period in 2007-2008.
Ryanair blamed the performance on soaring fuel costs, which rose by 59% to 1,257m euros and accounted for 45% of its operating costs.
But it was not all bad news for the airline, which generated adjusted net profits of 105m, increased revenues by 8% and boosted passenger numbers by 15% to 58.5m.
But CEO, Michael O’Leary, was bullish about the results, claiming they had exceeded expectations.
He said: “The recession and declining consumer confidence is proving to be good for Ryanair’s growth, as millions of passengers switch to our lower fares.
“Ryanair will continue to lower fares to stimulate traffic growth, maintain high load factors and win more short-haul traffic from our high fare competitors.”
