Ryanair shares fall as empty seats rise

Shares in Ryanair fell 6% today after the budget airline reported an increase in the number of empty seats on its planes in June.

Figures show the airline’s load factor stood at 79% last month – compared with the 88% a year earlier and the 83% achieved in the 12 months to June 30.

Ryanair, which posted a 59% increase in post-tax profits last month to €239.4m, said the fall was due to the use of larger planes.

Passenger numbers still rose 47% on June 2002 to 1.83 million, although the performance was only marginally ahead of the figure for May.

Investors were less than impressed as shares eased 25p to 406.5p in London.

But a spokeswoman said: “The company is very happy with figures showing a 47% rise in passenger numbers on last year.”

The proportion of seats sold via the Internet also increased to 94% from 91% a year earlier, the Dublin-based company added.

At the time of Ryanair’s results, chief executive Michael O’Leary warned that load factors would decline this year to about 80% and that margins would be diluted by the takeover of rival low-fare carrier Buzz.

Ryanair plans to carry more than 30 million international scheduled passengers a year within the next three years, he said, adding that, even with lower fares, it expected to record a 16th successive year of profits in 2003-04.