Feeds

Ryanair profits keep leaping

Airline sees huge jumps in online revenue and profits

  • alert
  • submit to reddit

Security for virtualized datacentres

Ryanair, the low-cost airline that has seen enormous success on the back of its Internet-oriented strategy, has seen Q1 profits jump 28 per cent year-on-year.

The company flew 2.4 million passengers during its most recent quarter, 42 per cent higher than Q1 last year. Revenue increased by 31 per cent to £93.3 million and profit was up 28 per cent to £14.35 million.

Unusually, chief exec Michael O'Leary didn't herald the company's Web site and Internet effort as the reason behind its continued success. Instead, he concentrated on pointing out that the increase was achieved despite a downturn in the airline market and an increase in costs.

Ryanair had cancelled several options on new 737s from Boeing and threatened to cancel more for 2004/5 unless the aircraft manufacturer lowered its prices, or "unless their pricing begins to reflect the current market realities" as O'Leary put it.

But while O'Leary didn't give his usual Net advocacy speech, the Web site's success is evident. Total operating expenses for the airline jumped 32 per cent as it hit a crucial expansion point (it opened seven new routes from London and six from Brussels), but it makes the point that a 44 per cent saving in marketing and distribution thanks to direct booking over the Internet helped offset this increase.

Plus, the fact that stepping from increase in customers to revenue increase to profit increase saw only a few percentage points drop each time is a remarkable argument in favour of low-cost, high-efficiency Web sites.

An interesting aside in the company's formal results announcement was the lambasting it gave the Irish government and Dublin airport. One paragraph reads: "Increased costs at Dublin Airport have resulted in higher fares and a reduction in traffic volumes from the UK (our biggest market) on a year-on-year basis. It is no coincidence that this failed policy has resulted in one of the worst ever years for Irish tourism. So long as monopoly protectionism, higher costs and Ministerial incompetence continues to adversely impact Irish tourism, Ryanair will continue to expand rapidly in Europe by opening new routes, guaranteeing lowest air fares and creating up to 500 new jobs outside of Ireland." Blimey, O'Reilly. ®

Reducing the cost and complexity of web vulnerability management

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
JINGS! Microsoft Bing called Scots indyref RIGHT!
Redmond sporran metrics get one in the ten ring
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Murdoch to Europe: Inflict MORE PAIN on Google, please
'Platform for piracy' must be punished, or it'll kill us in FIVE YEARS
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
Show us your Five-Eyes SECRETS says Privacy International
Refusal to disclose GCHQ canteen menus and prices triggers Euro Human Rights Court action
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
Protecting users from Firesheep and other Sidejacking attacks with SSL
Discussing the vulnerabilities inherent in Wi-Fi networks, and how using TLS/SSL for your entire site will assure security.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.