Low-cost airline’s profits surge

Demand for no-frills flights across Europe showed no signs of abating today as low-cost airline Ryanair posted a surge in full-year profits.

The group has spent the last 12 months ramping up its coverage across Europe, including new routes to Germany.

Today Ryanair showed how the strategy had paid off by posting a jump in final sales, from €487.4m to €624.1m.

That was despite the affects of foot-and-mouth and September 11 on tourism, as well as an 8% reduction in average fares during the year to March 31.

Passenger traffic grew 38% to 11.1 million, while load factor a key industry measurement showing passengers as a proportion of available seats- rose to 81%.

Overall, full-year pre-tax profits jumped from €123.4m to €172.4m.

Chief executive Michael O’Leary said the figures were ‘‘outstanding’’ and remained confident the group would continue to grow this year.

He said: ‘‘Since Ryanair will continue to reduce fares, the price gap between us and all of our competitors is getting wider.

‘‘As these robust results demonstrate, Ryanair is and will continue to be the fastest growing, and most profitable, and lowest cost, low-fares airline in Europe.’’