Ryanair profits ‘unaffected by late delivery’

RYANAIR says that profits will not be affected by the late delivery of new aircraft, which has forced the carrier to reign in expansion plans.

The airline said that between January and March next year it will have to cancel hundreds of flights because new Boeing aircraft will not be available on time.

A strike by Boeing workers in September and October means that four 737-800 jets will not arrive until next April.

Ryanair said that expansion of services from Nottingham East Midlands airport in Britain and Pisa in Italy will not go ahead until then. Some 300,000 people will be affected by the delay, the airline said.

This is the second time in two months that the Boeing strike has hit Ryanair.

In October it was forced to cancel up to 200 winter flights because of the continuing delays in receiving new jets.

It has attempted to make up for the delay by extending the lifespan of its existing fleet.

However, these jets have been sold and will be taken out of service at the end of the year.

The airline said that passengers affected by the cancelled flights or the two-month delay in new flights at the East Midlands and Pisa bases, will be notified at least three weeks in advance of the original date of travel and they will be offered either seats on an alternative Ryanair flight or they will be offered a full refund of their airfares.

“We apologise sincerely to all our passengers who may be inconvenienced by these schedule changes.

“We look forward to welcoming them on board the new flights from East Midlands and Pisa when the new aircraft are delivered and based there during April 2006,” the airline’s deputy chief executive Michael Cawley said in a statement yesterday.

It added that the problems with the late arrival of aircraft will cut its overall passenger numbers for the year to end March 2006 to just under 35 million.

However, it will have no impact on the airline’s profitability.

Ryanair expects to make around €290 million in profits in the financial year to end March 2006.

The airline’s shares gained just over 0.5% on the Irish market to close at €7.85. They have gained more than 50% in 2005.

Ryanair’s chief executive Michael O’Leary is due to hold a press conference this morning to discuss a number of issues.