RYANAIR has credited its non-fuel surcharge stance with helping it post up after-tax profits of 64.4 million euros for the first quarter of this year. Passenger numbers were also up 30% to 8.5 million between April 1 to June 30, and revenue grew by 35% to 404.6 million euros. The no-frills Irish airline’s operating profit was up 34% year on year to 85.8 million euros. Chief executive Michael O’Leary said yields were 3% higher than 2004, “slightly better than anticipated’’, despite a 30% increase in seat capacity. “These higher yields were primarily due to the multiple fuel surcharges imposed by the European flag carriers on their short-haul passengers,’’ O’Leary said. “These surcharges continue to widen the gap between their high fares and Ryanair’s low fares.’’ O’Leary expects to increase passenger numbers to 35 million for the year, a 27% increase on 2004. However, he agreed rising fuel costs – up 112% to 109.9 million euros for the quarter – and the threat of terror attacks in London “could have a downward impact on passenger volumes and yields’’. O’Leary added: “Our outlook for the remainder of the year is cautious. If there are no further attacks in London, then we expect that our forward bookings will not be materially impacted. However, if there are further incidents in London, both bookings and yields could be adversely impacted.’’
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