Ryanair low cost model see profits soar     

2nd November 2010

Ryanair sees half year profits to 30th September soar

Ryanair has seen its turnover rise to £2.2 billion in the first half of the year which is an incredible increase of 23% despite the set backs caused by the Ash cloud disruption and the  air traffic controller strikes in Greece, Spain and latterly France.

Traffic grew in this period by 10% to 40.1 million passengers with seat prices rising by 12% resulting in an average price of 44 euros.

The only downside to these figures was the increase in costs of 13% with the fuel bill accounting for a large proportion of this increase.The resulting net profit of E452 million is an increase of 17% and well above analysts expectations.

The company claims that they continue to win market share from Air France, BA and Lufthansa and also claim that they now carry more passengers in Spain than Iberia.

There is no doubt that the low cost model continues to work against very trying circumstances although BA recently reported very good increases for their half year and they have had the cabin crew strikes to contend with during this time.