Ryanair flying high with Q1 results

Low cost airline Ryanair was flying high today as figures showed first quarter net profits climbing 12% to a record €43.8m.

The Irish no-frills carrier flew 5.1 million passengers in the three months to June 30 – up 45% on the same period last year.

It was boosted by new routes and the takeover of rival Buzz earlier this year.

The results came a day after monthly passenger figures for July showed that the Dublin-based airline had broken through the two million mark – a first for any non-US low cost airline.

But today’s figures showed that load factors, which measure the proportion of seats the airline has filled, declined by five points to 78%.

While total revenues were up by more than a quarter to €245.2m, average yields were 14% lower at €41.71 and margins were down by 2% at 18%.

Ryanair said the fall reflected its decision to close down the Stansted-based Buzz operation for the month of April, as well as factors including the weakness of the pound against the euro compared to last year.

Chief executive Michael O’Leary said the profit figures reflected the success of its low fares formula.

“During what BA last week described as the most testing period in aviation history, we continue to drive down airfares, reduce costs, but at the same time deliver increased profits and exceptional margins,” he said.

“Passenger volumes grew by 45% to a record 5.1 million thanks to the successful launch of 50 new routes, two new bases at Milan-Bergamo and Stockholm-Skavsta, and the acquisition and relaunch of Buzz in May.”