Ryanair's profit up but shares still fall
Source: Agencies |
November 3, 2009, Tuesday
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Print Edition
Print Edition
BUDGET carrier Ryanair Plc yesterday reported second-quarter profit rose 35 percent as cost cuts helped offset a 4 percent revenue drop.
For the three months ending September 30, Ryanair reported a net profit of 250.5 million euros (US$370 million), compared to 185.8 million euros a year earlier.
Revenue fell to 992 million euros from 1.03 billion euros.
The airline cut operating expenses by 16 percent to 694 million euros, including a 176 million euro reduction in fuel costs.
Still, Ryanair shares fell yesterday after Chief Executive Michael O'Leary said the company might rein in expansion plans if it cannot extract concessions from Boeing for the purchase of 200 aircraft between 2013 and 2016.
"We see no point in continuing to grow rapidly in a declining yield environment, where our main aircraft partner is unwilling to play its part in our cost reduction program by passing on some of the enormous savings which Boeing have enjoyed both from suppliers and more efficient manufacturing in recent years," O'Leary said.
"We would prefer to grow, but if Boeing doesn't share our vision, then I believe that Ryanair should change course before the end of this fiscal year and manage the airline over the next three years to maximize cash for distribution to shareholders."
Ryanair shares were down 5.9 percent at 2.77 euros on the London Stock Exchange.
For the six months ending September 30, the firm reported a net profit of 373.5 million euros, compared to 95.3 million euros a year earlier.
The year-ago results were hit by exceptional charges of 119.3 million euros, compared to that of 13.5 million euros in the recent half.
For the three months ending September 30, Ryanair reported a net profit of 250.5 million euros (US$370 million), compared to 185.8 million euros a year earlier.
Revenue fell to 992 million euros from 1.03 billion euros.
The airline cut operating expenses by 16 percent to 694 million euros, including a 176 million euro reduction in fuel costs.
Still, Ryanair shares fell yesterday after Chief Executive Michael O'Leary said the company might rein in expansion plans if it cannot extract concessions from Boeing for the purchase of 200 aircraft between 2013 and 2016.
"We see no point in continuing to grow rapidly in a declining yield environment, where our main aircraft partner is unwilling to play its part in our cost reduction program by passing on some of the enormous savings which Boeing have enjoyed both from suppliers and more efficient manufacturing in recent years," O'Leary said.
"We would prefer to grow, but if Boeing doesn't share our vision, then I believe that Ryanair should change course before the end of this fiscal year and manage the airline over the next three years to maximize cash for distribution to shareholders."
Ryanair shares were down 5.9 percent at 2.77 euros on the London Stock Exchange.
For the six months ending September 30, the firm reported a net profit of 373.5 million euros, compared to 95.3 million euros a year earlier.
The year-ago results were hit by exceptional charges of 119.3 million euros, compared to that of 13.5 million euros in the recent half.
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