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Ryanair profit from hike in charges

Tue 2th Nov 2010

Ryaniar reported a 12% average rise in airfares together with extra revenues for 'additional charges' as they revealed a 17% increase in half-year profits yesterday.

The actual profit was posted at £393.4million for the six month period to September 30.

The 6 monthly figures were helped by a 10% jump in passenger numbers and higher fares, but Ryanair also saw a 22% increase in revenue brought from secondary charges such as baggage fees, priority boarding and onboard drinks.

Ryanair reported how advanced bookings for the coming winter months were busier than expected, which they expect would bring net profits for the full year of between £331million and £348million. They had initially forecast a figure of between £305million and £326million.

The 6 month hike in fares and passenger numbers helped Ryanair offset a 44% increase in fuel costs - although this was also partly due to them introducing more and longer flights.

Ryanair's average fares increased to £38.

With regards to the problems that the Volcanic ash issue caused many airlines earlier in the year, Cheif Executive Michael O'Leary said that the cost was likely to be less than first feared, at £28million.

O'Leary said the figures demonstrated the robustness of the low-cost model. However, airlines across the board are seeing a boost in air travel as the recovery takes hold.

British Airways last week returned to half-year profit for the first time in two years.

However, Leary also stated how Ryanair's fares - and air fares within the industry as a whole - are expected to increase "over the next couple of years".

He also mentioned that charges for those wishing to check luggage into the hold on Ryanair flights would also see an increase.

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