Ryanair reports 27% hike in passengers

RYANAIR has reported a 27% rise in year-on-year passenger numbers for September to 3.02 million, one of its highest ever monthly passenger tallies.

It marks the third month in a row in which passenger levels topped the three million mark, with 3.19 million passengers using the airline during July and 3.25 million people flying with it in August.

Over the 12-month period to the end of September, 31.6 million people flew with the airline. The company expects to raise that annual passenger figure to 35 million over the next year.

The airline's load factor which measures the extent to which it fills its seat numbers was unchanged year-on-year in September at 87%. The Internet sales percentage was up by 1% year-on-year to 98%.

The company has also exercised an option to acquire nine new Boeing 737-800 aeroplanes for around $500 million (€419m).

These are due to be delivered in late 2007, whereupon Ryanair will sell five of its older versions of the same model, which it has been using since 1999.

The company's overall fleet will increase by 151 aircraft to 234 by 2012.

In addition, Ryanair has options on a further 179 aircraft for delivery between 2008 and 2014.

Delivering the company's latest trading statement in London yesterday, Ryanair chief executive Michael O'Leary said that current trading was in line with expectations and that higher fuel prices over the summer have been partly off-set by a combination of other cost-reductions.

However, the company expects the fare differential between itself and Europe's flag carriers to be partially eroded as fuel surchargers are forced to lower underlying fares to compete with Ryanair's lower prices. Ryanair hasn't implemented a fuel surcharge in response to the recent rising cost of crude oil, unlike many of its competitors.

It's managed to combat higher fuel prices by raising ticket prices and improving its cost efficiencies.

O'Leary's outlook for the winter months is "cautious but comfortable" as he anticipates strong load factors and passenger volumes, even if at slightly lower yields.

"We expect yields to benefit from the multiple fuel surcharges imposed by the high fare carriers across Europe," he said.

O'Leary also had a pop at British Airways, calling it "the world's second-favourite airline" as Ryanair reported higher passenger numbers during August than the British flag carrier.

Ryanair currently flies from 15 bases and operates 266 routes to and from 21 countries across Europe.

The low-fares airline is also planning to develop additional new routes in the next couple of years after overhauling its fleet.

As many as 20 of these could fly out of Dublin Airport, after recent talks with the Dublin Airport Authority. Ryanair has reportedly said that it is willing to drop its objections to Dublin Airport's €1.2bn expansion plan as long as its demands for a significant reduction in passenger charges are met.