Ryanair numbers up 26%, and ash cloud is 'no threat'

The boss of Ryanair today dismissed fears that the latest ash-spewing Icelandic volcano would cause a repeat of last year's week-long air closure but admitted, "you can never underestimate European bureaucratic incompetence".

Michael O'Leary's comments came as the budget carrier beat expectations with a 26% surge in
pre-tax profit to £277 million for the year to April. It flew 72.1 million passengers, 8% more than the previous year.

O'Leary said that was a "good result" despite December's dramatic snowfall, air-traffic control strikes in Europe and ash from Eyjafjallajökull closing European air space. He added that he didn't expect a repeat of last April's chaos this summer.

"Having made such a mess of handling it last year, they've changed the procedures," he said. "Instead of closing huge swathes of air space, there is just a no-fly zone, which is sensible - you fly around the ash. That's what Europe should have done last year. We don't expect there to be huge air-space closures - although you can never underestimate European bureaucratic incompetence."

Ryanair said it was benefiting from having hedged its fuel needs at $82 (£51) a barrel until March, with current spot prices about $110 a barrel.

"With British Airways and Air France putting up fuel charges, there's no question we're benefiting," O'Leary said.

But he admitted that the high oil price would force Ryanair's average air fares up by 12% this year - having already hiked ticket prices by 12% last year.