Low cost airline sees no profits this year

Hotel News - 04/06/2009

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Europe’s largest low cost airline Ryanair has reported a massive £155 million loss leading to the year ending March 2009. The rise in fuel prices that went up by 59% shoulders most of the blame along with lower air fares and investment into Air Lingus.

Last year saw Ryanair report profits of over €438 million and this year they have increased passenger numbers by up to 15%.

Michael O’Leary, chief executive of Ryanair, said that they were going to offer Europeans a better value product during the hard financial times, like Aldi and Ikea do. “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”, he added.

During this financial year Ryanair intends to slash prices by up to 20% giving an average of just €32 per flight, hopefully increasing passenger numbers to 67 million. If fuel prices stay the same they can expect to slash the cost in half and are hopeful of making a good size profit this year of €200-€300 million.

In moving forward they have also announced that they will have an additional 14 planes this summer increasing their fleet to 202, and by summer 2010 they hope to have 244 planes running.

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