Ryanair profit soars

June 25, 2001 Posted: 0704 GMT

LONDON (CNN) -- Ryanair Holdings said on Monday profit soared 44 percent as more passengers booked tickets online, reducing costs.

Europe's biggest low-cost airline said net income for the year ending March 31 rose to 104.5 million ($90 million), or 29.26 pence a share. That compares to 72.5 million, or 21.48p a share, a year ago.

The Irish carrier, which models itself on U.S. low-cost carrier Southwest Airlines (LUV: Research, Estimates), has been a constant thorn in the side of European airlines, undercutting prices by flying to secondary airports

Ryanair said about 92 percent of its tickets are now sold via its Internet site, Ryanair.com. That and a reduction in travel agent fees has enabled the airline to cut marketing and distribution costs by 33 percent to 21.5 million.  

Passenger numbers rose 35 percent to 7.4 million. The company is aiming to fly 9 million passengers this year as it opens up more routes, to become Europe's fourth- or fifth-largest airline.

Chief Executive Michael O'Leary told CNN that passengers were looking for value and are "trading down from high fare airlines" such as British Airways and Belgian airline Sabena.

O'leary said BA has cut the cost of European fares on 80 routes and Sabena has been forced to lower some fares on routes they compete on. 

Ryanair's fuel costs, an airline's biggest expense, rose 52 percent to 63.5 million.

More than 47 percent of its shareholders are based in the U.S..

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