In the airline's half yearly results, net profit was up 80 per cent, while fares were down 17 per cent, but Ryanair warned expansion would be hindered by Boeing's reluctance to 'play its part in our cost reduction programme'.
The average fare charged by the airline stood at 39 euros (£35), with traffic growth up 15 per cent. Ryanair also said their net profit margin was 22 per cent, an industry leading figure.
Average fares could be cut by 20 per cent, the airline said, which could mean a loss for the second half of the year. However, profit is still forecast for the full year.
Ryanair's chief executive Michael O'Leary said: 'We expect average fares to decline by up to 20 per cent during quarters three and four, which will result in both these quarters being loss making. Despite this our full year guidance remains unchanged and will be substantially profitable, at a time when many of our competitors are losing money, consolidating or going bust.'
The airline warned traffic was being affected by passenger taxes, saying: 'Traffic at many Irish and UK airports has slumped, with Ireland facing a decline of 15 per cent of its air traffic, and the UK set to lose almost ten per cent of its traffic. We again call on the British and Irish governments to scrap these stupid tourist taxes and reduce airport charges.'
But Ryanair also warned today that they were making little progress in discussions with Boeing for an order of 200 aircraft for delivery between 2013 and 2016. Mr O'Leary added: 'We won’t continue these discussions indefinitely and have signalled to Boeing that if they are not completed before the year end, then Ryanair will end its relationship with Boeing and confirm a series of order deferrals and cancellations.
'We see no point in continuing to grow rapidly in a declining yield environment, where our main aircraft partner is unwilling to play its part in our cost reduction programme by passing on some of the enormous savings which Boeing have enjoyed both from suppliers and more efficient manufacturing in recent years.'
The average fare charged by the airline stood at 39 euros (£35), with traffic growth up 15 per cent. Ryanair also said their net profit margin was 22 per cent, an industry leading figure.
Average fares could be cut by 20 per cent, the airline said, which could mean a loss for the second half of the year. However, profit is still forecast for the full year.
Ryanair's chief executive Michael O'Leary said: 'We expect average fares to decline by up to 20 per cent during quarters three and four, which will result in both these quarters being loss making. Despite this our full year guidance remains unchanged and will be substantially profitable, at a time when many of our competitors are losing money, consolidating or going bust.'
The airline warned traffic was being affected by passenger taxes, saying: 'Traffic at many Irish and UK airports has slumped, with Ireland facing a decline of 15 per cent of its air traffic, and the UK set to lose almost ten per cent of its traffic. We again call on the British and Irish governments to scrap these stupid tourist taxes and reduce airport charges.'
But Ryanair also warned today that they were making little progress in discussions with Boeing for an order of 200 aircraft for delivery between 2013 and 2016. Mr O'Leary added: 'We won’t continue these discussions indefinitely and have signalled to Boeing that if they are not completed before the year end, then Ryanair will end its relationship with Boeing and confirm a series of order deferrals and cancellations.
'We see no point in continuing to grow rapidly in a declining yield environment, where our main aircraft partner is unwilling to play its part in our cost reduction programme by passing on some of the enormous savings which Boeing have enjoyed both from suppliers and more efficient manufacturing in recent years.'
If you look at Shannon case airport, you'll notice one thing very clearly. Ryanair didn't manage to honor its contract with Shannon, Ryanair said that it expected to carry 800 000 instead of the 1,9M targest as agreed with Shannon. I can't believe that 10€ per passenger could lower the number of passenger from 1;9M to 800 000. it's nonsense. So Tourist tax is an excuse to renegociate contract that O'leary knows his company won't able to honor
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