Ryanair sees 47% revenue dip

Losses blamed on cost of oil

Ryanair has announced a €215 million profit for the half year, a 47% drop compared with 2007 after its fuel costs more than doubled from €392.7 million to €788.5 million.

Ryanair’s CEO Michael O’Leary said: “Achieving a half year net profit of €215 million in very difficult trading conditions with record oil prices is a testimony to the strength of the Ryanair lowest fare model, which delivered 19% traffic growth, and a 4% yield decline (due to the absence of Easter and falling baggage penetration rates).”

He added that ancillary revenue continued to perform well. “Ancillary revenues which grew by 28% to €322 million account for almost 18% of revenues versus 16% last year. Unit costs including fuel rose by 21%. Fuel accounted for more than 50% of our total operating costs as the cost per barrel doubled from $63 to $125.”

Source: Routes News