=20 ---------------------------------------------------------------------- This article was sent to you by someone who found it on SFGate. The original article can be found on SFGate.com here: http://www.sfgate.com/cgi-bin/article.cgi?file=3D/n/a/2005/05/31/financial/= f064527D12.DTL --------------------------------------------------------------------- Tuesday, May 31, 2005 (AP) Irish Airline Ryanair's Profit Up By SHAWN POGATCHNIK, Associated Press Writer (05-31) 06:57 PDT DUBLIN, Ireland (AP) -- Irish budget airline Ryanair reported better-than-expected profits Tuesday, citing its stringent cost controls and continued growth in passenger numbers and routes across western Europe. For the full year ending March 31, the Dublin-based airline said its net profit rose 29 percent to 266.7 million euros ($330.7 million) from 206.6 million euros in fiscal 2004 — about 10 percent better than most analysts expected. Revenues rose 24 percent to 1.34 billion euros ($1.66 billion) from 1.07 billion euros last year. Chief Executive Michael O'Leary said European flag-carrier airlines were reducing their services "in markets where they compete with Ryanair." He said Ryanair also was expanding into eastern Europe and raising pressure on its main no-frills rival: the Luton, England-based easyJet. "We have been most encouraged by the strong advance bookings at our new Luton and Liverpool bases, where passengers are looking for an alternative to easyJet's high prices," he said. "Recently we announced five new routes from London to Poland and Slovakia and expect that these will be the first in a series of new route announcements over the coming weeks for next winter," he said. O'Leary predicted an even better 2006 for the airline, which was launched 20 years ago operating a single route between London and the southeast Irish city of Waterford. Today it operates 220 routes in 19 countries. "If our competitors continue to maintain (fuel) surcharges or continue to remove capacity from our markets, then yields should be more stable, even as we continue to expand," he said. "Advance bookings for the summer months are strong, and we are raising o= ur traffic growth forecast for the coming year from 34 million to 35 million," he said. Ryanair's shares rose 5.6 percent in afternoon trade on the Irish Stock Exchange to 6.60 euros ($8.20). Analysts agreed that Ryanair appeared poised for continued growth and would benefit from unusually shrewd forward planning. They cited Ryanair's February deal with Boeing for at least 70 new 737-8= 00 aircraft — locking in the dollar's near-record weakness versus the euro — and the airline's advance purchase of 75 percent of its winter fuel requirements at rates equivalent to $47 a barrel. Oil was trading Tuesday near $52 a barrel. "They're pretty good numbers all round. The trading statement is pretty bullish as well," said analyst Shane Matthews at NCB Stockbrokers in Dublin. Joe Gill, an analyst for Goodbody Stockbrokers in Dublin, said Ryanair's "bookings are exceptionally strong. With their orders for Boeing already in, it's hard to see how they're going to show profits weakness over the next year." ___ On the Net: www.ryanair.com ---------------------------------------------------------------------- Copyright 2005 AP