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Ryanair profits soar but charges will rise IRISH low-cost
carrier Ryanair expects profits to hit e470million in the year to end
of March 2008 but added it is considering upping its charges.
The airline which had been expecting net profits in the year to be around
?440million said that it is considering increasing its charge for airport
check-in and the carriage for hold baggage.
Ryanair’s chief executive Michael O'Leary said: “People complain
we are charging for check-in but people who use web check-in and only
have carry-on luggage are getting even cheaper fares.
“The baggage charges and the check-in charges will rise.
“We will keep raising them until we can persuade the 40 to 45 per
cent of passengers who travel with Ryanair for one or two days to bring
just one carry-on bag.”
Mr O’Leary said the new full-year profit target will be achieved
against a background of fares falling at a
rate lower than had been previously guided.
Ryanair had been looking at fares dropping by up to 10 per cent in the
winter months but now believe fares would decline by around 5 per cent.
He added that many other airlines were struggling with the cost of fuel
as the price of oil continued to surge.
Mr O’Leary was speaking at a press conference in London as Ryanair
beat market forecasts with its results for the six months to September
30.
After-tax profits rose by 24 per cent to ?408million, reflecting higher
passenger numbers and restricting cost increases to just 5 per cent having
predicted a 7 per cent rise.
Ryanair flew 26.6million people in the six-month period, an increase of
20 per cent on the previous year.
Revenues rose by an even greater 24 per cent to ?1.55billion as sales
of ancillary services such as in-flight sales, insurance and car hire
exceeded the growth in passenger revenues.
Average fares in the first half fell 1 per cent despite the introduction
of new charges for baggage and checking-in online.
The latter charge has since been dropped and replaced by a charge on those
who check in for flights at the airport.
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