Ryanair's Q1 profits tumble 85 per cent to $33 million
28 Jul 2008
Europe's biggest low cost carrier, Ryanair Holdings Plc, has said its fiscal Q1 profit declined 85 per cent mainly on account of higher fuel costs. Net income, excluding write-downs, tumbled to $33 million in the three months ended 30 June from $217 million a year earlier, the Dublin-based carrier said in a statement.
This despite sales gaining 12 per cent, to $1.2 billion.
Like airlines around the world Ryanair too is battling record oil prices and declining passenger numbers.
The carrier also said that average ticket prices could dip as much as 5 per cent over the year as fares are lowered to attract passengers.
Just as crude prices have begun to show a downward trend, hovering around the $123 mark today, Ryanair has now said it has hedged 90 per cent of its fuel needs for September at $129 a barrel and 80 per cent for the third-quarter at $124 a barrel.
Earlier in the year the company had said it wouldn't hedge until oil prices went below the $100 a barrel mark. Consequently, it remained largely un-hedged for the first-quarter.
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