Ryanair has record year but expects turbulence
Carrier reports profits of €481m for 2008 but rising oil prices cause concern
Ryanair ceo Michael O'Leary alighting from his Mercedes taxi for an engagement in Dublin
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RYANAIR yesterday reported record profits of €481m for 2008, but warned it might only break even in 2009 in the "unlikely" event that oil stays at $130.
Up 20pc year-on-year, 2008's profits were achieved despite a 14pc rise in fuel costs and 45pc surge in airport costs.
Chief executive Michael O'Leary said the surge in airport costs was largely linked to higher charges at Dublin and Stansted and would not be repeated in 2009.
Conversely, fuel is expected to have an impact on the 2009 accounts, with every $1 move in oil prices taking €13m from Ryanair's bottom line.
Mr O'Leary said there were no plans to hedge at the current levels, adding that the company's focus would be on other areas.
These other areas include airport costs, handling costs and staff costs, all targeted under a company-wide efficiency drive launched last March.
Ryanair's head of scheduled revenue, Sean Coyle, said €20m in annual savings from airports had already been secured while €20m in handling costs' efficiencies is expected to be locked in over the coming months.
The programme has also seen 40 staff made redundant at Ryanair's Dublin call centre.
Other cost initiatives include using check-in kiosks to replace check-in desks, with the first 14 to be introduced in Stansted at the end of August and the next tranche to be rolled out in Dublin by November.
Meanwhile, a company-wide pay freeze remains in place across all areas without prior agreement on pay rises.
Ryanair also confirmed plans to ground up to 20 aircraft this winter, with Mr O'Leary attributing the move to "high charges at Stansted and Dublin" and Mr Coyle chalking them up to "airport charges and oil".
Despite those plans, Mr O'Leary said he was "very comfortable" with the airline's delivery schedule from Boeing, which will see about 30 new planes added next year.
On the revenue side, Ryanair hopes to boost passenger numbers by 16pc next year, to 59 million, while it foresees a 5pc rise in yields. The airline hopes ancillary revenues, up 35pc in 2008, will grow "ahead of passenger numbers", Mr O'Leary said.
Ryanair has already fitted 14 aircraft with mobile-phone-enabling devices and hopes to begin selling the services from July.
- Laura Noonan
