Record profits as airline cuts flight numbers

Aug 1 2007 by Tony McDonough, Liverpool Daily Post

LIVERPOOL’S biggest airline, Ryanair, yesterday posted record second quarter profits and said it would cut back on flights from Stansted Airport because of what it claimed was “appalling service”.

The carrier said Stansted’s doubling of airport charges in April meant it was more profitable to ground seven of its 40 aircraft this winter than fly them.

Stansted is one of seven UK airports run by operator BAA. Ryanair chief executive Michael O’Leary has called for the break-up of the group.

He added: “The current service provided by BAA at Stansted is nothing short of appalling.

“We continue to press for the break-up of the BAA airport monopoly which provides abject facilities, a third-rate service and charges extortionate prices.”

In contrast, low landing charges at Liverpool John Lennon Airport (JLA) mean the airline is continually looking to expand its routes out of Merseyside.

Last week it announced six new routes out of JLA to George Best Belfast City airport, the Hungarian capital of Budapest, Tenerife and Fuerteventura in the Canaries, and Bydgoszcz and Lodz in Poland.

It also announced the return of services to Grenoble in France and Salzburg in Austria in December to serve this winter’s skiing season.

Despite the withdrawal of three under-performing routes to Inverness, Aberdeen and Kaunas, Lithuania, Ryanair is still by far the biggest airline at JLA with 33 routes.

Yesterday, Mr O’Leary said passenger numbers would grow at a slower rate this winter due to the decision to cut Stansted services by nearly 20%.

The carrier predicts volumes will grow by around 18% to 50m instead of the 24% growth previously expected.

But Ryanair said the reduced services would also bring more stability to prices, although the company maintained its cautious outlook for the year.

Despite weaker demand, the company posted record profits of £93.8m for the three months to June 30, 20% higher than last year.

The firm grew ancillary revenues, including excess baggage charges and travel insurance, by 53% to £79.1m.

Group revenues for the quarter were 22% ahead at £370m, with extra charges accounting for 17% of turnover.

tonymcdonough@dailypost.co.uk