Ryanair reports record annual profits

Source: Stock Market Digital

Date :05/06/2007 08:39:49

The results have been attributed to higher ticket prices and extra charges for customer baggage.

Post-tax, adjusted profit was €401.4 million in the 12 months to the end of March, the airline said.

Ryanair, Europe's biggest budget airline, has benefited from its decision to start charging customers for every bag that they check in, and for services such as priority boarding.

However, Ryanair has warned that profit growth would slow in the current year.

The company said that it expected profit growth to slow to about 5 percent in the current financial year, and urged its shareholders to remain "cautious and conservative".

Ryanair's outspoken chief executive Michael O'Leary told the BBC that a number of factors had combined to slow earnings growth.

Mr O'Leary complained that price increases imposed at Stansted airport, where costs have “doubled since April” and higher air passenger duties (APD) were having a negative impact on demand.

The company also singled out Dublin airport for criticism, accusing both it and Stansted of imposing unjustified price increases while providing substandard service and facilities.

The airline added that it would continue to push for the break up of BAA, the company that runs the UK's biggest airports, including Heathrow, Gatwick and Stansted.

June 5 2007