Ryanair PLC said today that falling fuel prices had boosted profits over the past 6 months but added that cut-price fares would result in losses for the remainder of their financial year.
The budget airline said pre-tax profits were €419.4m in the six months to September 30, from €105.2m last year, but said the results were “heavily distorted” by a 42% drop in fuel costs. Ryanair said this masked a 17% decline in average fares and warned that prices would fall 20% over the rest of the year, resulting in losses for the last two quarters. Ryanair chief executive Michael O’Leary said the group would be “substantially profitable at a time when many of our competitors are losing money, consolidating or going bust”. He said traffic growth is strong “but at the expense of declining average fares”, while the weakness of sterling and tourist taxes in the UK and Ireland had also hit takings.
Read more about this on breakingnews.ie: http://www.breakingnews.ie/business/ryanair-reports-80-surge-in-profits-432577.html