=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/2005/11/07/financial/= f061046S48.DTL --------------------------------------------------------------------- Monday, November 7, 2005 (AP) Ryanair Posts Profit on Passenger Numbers By JANE WARDELL, AP Business Writer (11-07) 06:10 PST LONDON, United Kingdom (AP) -- Irish no-frills airline Ryanair Holdings PLC said Monday its second-quarter profit rose 17 percent on the back of increased passenger numbers that helped offset rising fuel costs. However, the carrier added that it remained cautious about its prospects in the coming winter season, a warning that caused shares to drop 2.3 percent to 6.82 euros ($8.06) on the Irish Stock Exchange. Net profit for the three months ending Sept. 30 grew to 172.5 million euros ($203.8 million) from 148.1 million euros a year earlier, as sales increased 32 percent to 541.5 million euros ($639.8 million). The net profit figure was just ahead of the 171 million euros ($202 million) analysts had expected. "These record traffic and profits reflect the continued successful rollo= ut of Ryanair's lowest fare model despite difficult trading conditions characterized by record-high fuel prices and intense competition," Ryanair Chief Executive Michael O'Leary said. The airline also said that its decision not to impose a fuel surcharge on passengers had helped boost the number of passengers traveling to 9.5 million in the quarter, up 28 percent from a year earlier. However, it also led to a 3 percent increase in average fares. Other airlines, including British Airways, have avoided direct increases in fares by charging a separate fuel charge to counter soaring oil prices in recent months. During the quarter, Ryanair's fuel and oil bill rose sharply to 127 million euros ($150 million), from 62 million euros a year earlier. It added that its fuel costs had more than doubled during the six months to Sept. 30 and that it expected costs to remain high "for some time." O'Leary said the airline will hedge its fuel requirements for next summer if the oil price drops below $50 a barrel. Oil is currently trading around $60 a barrel. The company, Europe's largest budget carrier by passenger numbers, said = it expected full-year profit to rise about 10 percent to just over 300 million euros ($354.4 million). It said it expects to transport more than 35 million passengers this fiscal year and expects average fares to be flat in the current financial year compared with a year earlier. The quarterly profit figures were also boosted by increased volumes of passengers on existing routes and the launch of new bases at Luton, north of London, at Liverpool and at Shannon, on Ireland's west coast. Ancillary, or non-ticket, revenues rose 36 percent to 71 million pounds ($83.8 million) in the quarter. Ryanair last week announced plans for in-flight gambling as part of its strategy to increase ancillary revenues, which also include commissions on hotel and car hire bookings. ___ On the Net: www.ryanair.com --------------------------------------------------------= -------------- Copyright 2005 AP