Ryanair unveils shares offer

Low air fare sector specialists Ryanair today detailed plans for a shares sale aimed at raising cash for new aircraft, just three days after unveiling record profits and passenger numbers.

The Irish airline reported offering 26 million ordinary shares for sale at a price of 6.25 euros each to bring in 162.5m euro.

The company said it had applied to the Irish stock exchange and the United Kingdom listing authority for the shares to be admitted to the official lists in both Dublin and London.

The offering was being directed at existing and new institutional investors in Ireland, the UK and other European Union member states, said a spokesman.

On Tuesday Ryanair said its passenger totals were up by 30% to 2.7 million and after-tax profits by 35% to 28.8m euro, despite the world airline industry’s worse-ever trading period internationally following the September 11 terrorist attacks on the United States.

During the final quarter of last year Ryanair’s load factor shot up by 79% and revenue by 18%, to 135.5m euro.

Ryanair said then: ‘‘Unlike any other airline in the world following September 11, our margins rose from 19% to 21% for the quarter and net profit increased.’’

Chief executive Michael O’Leary said the strong set of results, which were ahead of most Dublin analysts’ expectations, underlined the resilience of Ryanair’s ‘‘unique low fares model’’.

He added: ‘‘Ryanair led the fight back following September 11 by slashing fares and offering one million seats for sale at 12.68 euros.’’

The no-frills carrier plans to use the shares placement to help fund its purchase of 100 new 737-800 jets from America’s Boeing aircraft manufacturing giant, a development announced earlier this month.

The airline reckons economies of scale arising from the fleet expansion are set to play a key role in keeping costs low and profit margins intact.

The company this week highlighted the ‘‘huge potential’’ for low cost air travel as it currently accounted for only 4% of the total market, and dismissed suggestions that Ryanair was expanding too rapidly.

Ryanair have also introduced a programme to boost the percentage of its share capital held by European Union nationals, in line with new community rules.