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Budget airline Ryanair warned today that it could accomplish a
accident this year as a aftereffect of spiralling ammunition costs.
The Dublin-based abettor appear an 85 per cent abatement in
aboriginal division post-tax profits to 21 actor euros (£16.6 million)
and said it accepted to almanac a full-year aftereffect of amid
break-even and a accident of 60 actor euros (£47.3 million).
Chief controlling Michael O'Leary said the company's ammunition
bill rose 93 per cent to 367 actor euros (£289.6 million) in the
aboriginal quarter, apery about 50 per cent of its operating costs,
compared with 36 per cent endure year.
Despite the oil amount pressure, Mr O'Leary said the airline remained committed to its agreement of no ammunition surcharges.
He added: "We will abide to blot college oil costs, even if it
agency concise losses, while we abide to bear Europe's affirmed
everyman fares to our 58 actor passengers."
Oil prices hit 147 US dollars a butt this month, but Ryanair
afresh took advantage of a abatement in the amount to fix 90 per cent
of its ammunition claim at 129 US dollars a butt for September and 80
per cent of the October to December aeon at 124 dollars. However, it is
unhedged for the fourth division to the end of March.
Ryanair said its anticipation of a accessible accident for the
abounding year was based on fourth-quarter oil prices of 130 US dollars
and a 5 per cent abatement in boilerplate fares.
It said it would attending to advance "aggressive pricing" in adjustment to advance top even usage.
Mr O'Leary added: "We now accept that our boilerplate fares for
the year may abatement by as abundant as 5 per cent if European
airfares attempt this winter.
"Ryanair will advance this bottomward appraisement at a time if
a lot of of our competitors are acquisitive to accession fares and
ammunition surcharges."
The airline said this ages that it planned to cut its amount of
account flights from added than 1,850 to just beneath 1,600 this
winter. That includes a 14 per cent abridgement in the amount of
account flights at Stansted Airport in Essex.
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