Ryanair defies fall-out as profits soar
BUDGET carrier Ryanair has provided a much-needed boost to airline investors, boasting that it will still hit its full-year targets despite the 'traumatic impact' of the 11 September terrorist attacks on the sector.
The Irish-based group, posting a 39% jump in first-half profits, reckons it will gain as larger competitors such as British Airways, Aer Lingus and Italy's Alitalia withdrew from routes in an attempt to cut costs.
'Ryanair remains comfortable with our current trading which (in the aftermath of 9/11) is characterised by lower average fares, but high traffic flows,' said chief executive Michael O'Leary. 'We continue to see no reason why Ryanair will not continue to perform in line with the current general consensus range of analyst forecasts for the remainder of the fiscal year.' The stock jumped 32 1/2p to 660 1/2p in early trade.
Profits hit e88m (£54m) after tax for the six months ended September, with passenger traffic 37% higher at 5.3m. Profits in the second quarter rose e72.3m from e52.9m a year earlier.
'This is a great set of results bearing in mind that the half year covers both the foot and mouth outbreak in the UK at the beginning and the tragic events of 11 September in the US at the end, both of which negatively impacted air travel in Europe,' O'Leary added.
