Ryanair’s ancillary revenues grew by 23 percent to €598 million as the airline reported its first annual loss.

Published: 03 Jun 2009

Ryanair’s ancillary revenues grew by 23 percent to €598 million as the airline reported its first annual loss.

The airline stated that it has now achieved its target of 20 percent of revenues (18 percent last year) one year ahead of schedule. Its onboard mobile telephony service trial commenced at the end of February and is now available on over 40 aircraft based in Ireland and Italy.

“Early indications prove that consumers love this service and penetration rates continue to rise. While initial revenues will be small, we believe that in-flight communications will make a meaningful contribution to ancillary profit growth in future years if this trial proves successful,” stated the airline.

Ryanair posted a €169 million ($240 million) loss in the last year after being hit with higher fuel costs and a writedown in its investment in rival carrier Aer Lingus.

The company said that with the writedown on the Aer Lingus stake stripped out, its figures showed a more “robust” net profit of €105 million.

Revenues rose by eight percent to €2,942m as airfares fell eight percent and traffic grew 15 percent to 58.5m.

“To deliver a net pProfit of €105m (although a disappointing €376m decline over last year’s figure) was a robust performance during a year of record high oil prices when our fuel bill jumped by €466m (up 59 percent). In a year when most airline competitors announced large losses, Ryanair’s profit exceeded our previous guidance. Average fares (due to the global recession and weaker Sterling) fell by eight percent to €40, but this was largely funded by a three percent reduction in non fuel operating costs. The recession and declining consumer confidence is proving to be good for Ryanair’s growth,” stated the airline.

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