There’s money in low air fares – Ryanair boss Michael O’Leary has just announced record profits at the budget Irish carrier.
The Westmeath native said that profits rose by 25 percent to almost $750million with revenue over $6billion, an increase of 19 per cent compared to the previous year.
The controversial CEO – who this weekend branded anti-Fiscal Treaty campaigners as lunatics – made the announcement on Monday.
He confirmed that the no-frills airline had managed to raise profits and revenue in the year up to March 31st, despite the recession.
O’Leary told investors that rising fares and passenger numbers helped offset the rising cost of fuel.
He did warn that profit would fall in the coming year as Europe’s economic slowdown continues.
Ryanair carried 5 per cent more passengers with a total of 75.8 million for the year despite grounding up to 80 aircraft last winter.
The company opened six new bases and added 330 new routes as it moved to take advantage of gaps in the market left by the closure of airlines such as Hungary’s Malev and Spanair.
“We expect more European failures in 2012, as higher oil prices and recession continues to expose failed airline models as well as subscale or peripheral carriers,” O’Leary said in a statement.
“While average fares were up 16 per cent, unit costs showed 13 per cent growth as fuel costs rose by 30 per cent land sector length was 6 per cent higher.
“We predict further airline failures as a result of rising fuel prices.
“However, Ryanair is expecting its own traffic to rise by 5 per cent next year, bringing its total passengers to 79 million. Most of that growth will be in the first half of the year, when traffic will grow 7 per cent, followed by a 3 per cent rise in the second half.
“We remain concerned about next winter as we have zero yield visibility but expect recession, austerity, currency concerns and lower fares at new and growing bases in Hungary, Poland, Provincial UK, and Spain will make it difficult to repeat this year’s record results.
“We expect that any increase in fares will only partially offset higher fuel costs.”
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Switch to the desktop site to post a comment.Murph46 | May 24, 2012, 04:21 AM EDT
LoyalCitizen-you are accusing O'Leary of dishonesty ,keeping different "books" is that correct,you open yourself up to libel,yet you call me names!
seanomelbourne | May 23, 2012, 06:57 PM EDT
Unlike you (bythebay) O'Leary and I are soul mates from Dublin.mamaginty my point was not to condemn O'Leary for filling a niche market or making loads of dosh,if you read my post CAREFULLY I was condemning him for wanting to change laws to make him even richer. O'Leary has an aggressive manner and acts like a spoiled child to gain his own way.I hope I have clarified my simple post for you mamaginty BTW whose the eejit now??
mamaginnty | May 23, 2012, 03:00 PM EDT
Loyalcitizen...all facts, choke on it.
Bythebay | May 23, 2012, 11:17 AM EDT
seanomelb emigrated to Australia in the British Commonwealth before Michael O'Leary was born!
IrelandNorth | May 23, 2012, 08:46 AM EDT
I've no problem with O'Leary's success. Don't think he ownes Ryanair outright. May be a major shareholder though. Real test will be if he's a conscientious capitalist, and spreads around the financial success on the workers who helped him creat it? Might make those unhappy faced east-bloc babes even more attractive psychologically than they are physically.
LoyalCitizen | May 22, 2012, 06:42 PM EDT
@mamaginnty: Maybe you should research his O'Leary's father and get your facts right............You have displayed less knowledge than Murph46 and that's hard to do.
mamaginnty | May 22, 2012, 02:47 PM EDT
LoyalCitizen-Seannome1b what sort of eegits are you, The other 70 million are quite happy with O'Leary, quite happy without the trimmings. When he first started out, within a year he told how he made a profit and was able to buy a ranch in America for 600.000. A.Lingus and the government were raging, gov. had shares and Lingus was getting bailouts every couple of years from them. They had full control in Ireland for decades, charged extortionate prices yet always the poor mouth. Once O'Leary started showing the profit he was making the hang men were out for blood. I have traveled with Ryanair quite a few times and can find nothing wrong with it. No caviar or velvet pillow for the 70 million, just grateful that his prices are so cheap. That is not manipulating people, and he doesn't fly little tin planes for god sake. Yes he is making money but admits it, where Lingus didn't. "Hiding his books/accounts in different countries" Loyalcitizen you twit he has bases in a lot of countries now, and has to account for every passenger who boards. I admire the man who started from nothing and showed up Lingus and gov. for the crooks they were and still are. Keep up the good work Michael I would never travel by Lingus, pay double the price just for sake of getting an extra luxury, coffee or tea during the flight. Propaganda has ruined many a good man.
Bythebay | May 22, 2012, 10:11 AM EDT
seanomelb, an insight into O'Leary from Australia?? What a laugh!! Typical of the self-proclaimed know it alls outside Ireland who know nothing at all.
LoyalCitizen | May 22, 2012, 03:59 AM EDT
@Murph46: The word your looking for top explain why O'Leary keeps accounts in different countries is called "dishonesty"............You are so naive about the ways of the world when it comes to business people.
irishpjk | May 21, 2012, 11:24 PM EDT
I think that is funny because the Irish government and Aer Lingus will tell you he doesn’t know how to run an airline. How much did Aer Lingus make last year?
Murph46 | May 21, 2012, 08:42 PM EDT
seanmelb-you in several sentences have given me an insight into O'Leary,but LoyalCitizen has insinuated that O'Leary keeps several sets of books and further insinuates that these numbers are higher than actual sales.I question why someone would do that when there are tax consequences to the "higher"figure-Loyal has yet to answer that conundrum,perhaps you can enlighten me why someone would do that.
seanomelb | May 21, 2012, 08:11 PM EDT
Murph46 I ran my own businesses most of my life I am also a "Liberal". O'Leary is motivated by self interest and sees regulations (safety or otherwise) as a nuisance to his bottom line and works tirelessly to change the regulations which blight his bottom line with no concern for the public. he treats the "flying" public with contempt and are there to be manipulated for more dollars.
Brolaur | May 21, 2012, 05:47 PM EDT
Congratulations again,Michael. I know you wouldn't ever consider politics because of the Stink but surely some half brained politician could ask that you be on some advisory committee to give this bewildered, brainless bunch some indication as to where we should be headed. Thanks again or all you have done. Keep up the Good Work!
Murph46 | May 21, 2012, 05:27 PM EDT
If you are so dumb as to believe that he is hiding by keeping multiple sets of books or whatever the hell your alluding to LoyalC......,tell your doctor it's time to change your meds again,and tell the nurse to wipe the drool off your chin.Go back to happy fun time with the rest of the patients.
JBRAFTREE | May 21, 2012, 04:46 PM EDT
God forbid, we in Chgo should have an Irish Airline that goes from here to Shannon. Waaay too much to ask!!!!!
LoyalCitizen | May 21, 2012, 03:11 PM EDT
@Murph46: You should change your name to NOClue46...........LMAO.
LoyalCitizen | May 21, 2012, 02:33 PM EDT
@Murph46: He can tell all the stories he likes because nobody checks out is accounts............He is based in multiple countries across Europe deliberately to hide his accounts...........You again do not know the subject.
Murph46 | May 21, 2012, 01:47 PM EDT
And ,by the way Loyal....... he isn't about to tell tall stories because they can check his records for taxes ,It must be terrible to live such a cynical,misinformed life like yours!
Murph46 | May 21, 2012, 01:43 PM EDT
And of course the flaming liberal you are has total jealousy towards anyone who accomplishes something on their own.Let me guess you have worked for someone or thr govt.all your life!
LoyalCitizen | May 21, 2012, 12:22 PM EDT
@Murph46: Did you know that Ireland / Europe has been in recession since 2008...........That's an awful lot of profit where the customer has no money...........Something smells to me..............Michael O’Leary is famous for his exaggerated stories about his greatness...........He loves gullible people like you and IC to give him free publicity.
LoyalCitizen | May 21, 2012, 12:21 PM EDT
@Murph46: Did you know that Ireland / Europe has been in recession since 2008...........That's an awful lot of profit where the customer has no money...........Something smells fishy to me..............Michael O’Leary is famous for his lies and spoofs...........He loves gullible people like you and IC to give him free publicity.
Murph46 | May 21, 2012, 09:54 AM EDT
Congratulations ,if you were in America you would be castigated for doing well!