Ryanair has reported a 29% fall in profits during the three months to June. Net profit was €99 million, compared to a forecast of €123 million. The airline blamed austerity, recession and high fuel prices. Neverthless the budget carrier has maintained its full year profit forecast of between €400 million and €440 million.
"Austerity is biting. There is just less money around," said Chief Financial Officer Howard Millar. "There are no particular bright or black spots."
Although the airline is 90% hedged for its fuel costs for this financial year, the benefit from that has been offset by a lower euro to dollar exchange rate. With fuel prices so high, Ryanair has taken the decision to ground 80 of its 270 planes over the winter.
Average fares were up 4% with an on track average growth of around 3% for the full year.
Losses soar at Air France-KLM
Air France-KLM has reported a net loss of €895 million in the three months to June 30, compared to a loss of €197 million a year earlier. The airline group cited an “uncertain outlook” for the global economy and volatility in fuel prices and the euro currency for the disappointing results and that forecasts for the latter part of the year were therefore “difficult”. The group has provided €368 million for restructuring that cut 10% of its workforce.
Air France-KLM’s revenue was up 4.5% to €6.5 billion in the second quarter, boosted by a 2.4% increase in passenger traffic.
Ryanair Spring quarter profits drop 29%
