RYANAIR WARNS OF DUBLIN WINTER CUTS - There are results this morning from Ryanair. It has reported that adjusted net profit rose by 550% in the first three months of its financial year to €136.5m, beating market expectations.
Michael O'Leary, the airline's chief executive, said the distortion in the figures was partly because of a 42% reduction in fuel costs over the same three-month period a year earlier. Ryanair expects its yields - average fares - to fall by about 20% this year, and traffic to increase by 15%.
Ryanair deputy chief executive Michael Cawley said the airline's Q1 profit margin was 18%, but he did not expect this to be maintained for the full year because of lower fares.
Asked about capacity at Dublin Airport, Mr Cawley said Ryanair would be finalising its plans for the winter schedule in the next two or three weeks. He warned that there would be significant reductions at Dublin and Shannon, blaming to €10 passenger tax and high charges at Dublin Airport.
Mr Cawley said Ireland was 'singularly uncompetitive' in an environment where other governments and airports in Europe had been reducing costs to low levels. He claimed Ryanair could grow in Dublin and elsewhere in Ireland, if it were not for the travel tax and 'higher airport charges in Dublin and Cork'.
Asked about Ryanair's fees and charges for passengers, Mr Cawley claimed all of these were discretionary and avoidable. He said the airline's planned 20% cut in average fares this year included such fees.
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NEWS AND CURRENCIES - A survey has shown that German consumers are becoming more confident about the future and more willing to part with their hard-earned cash. The GfK institute said low inflation had made consumers more eager to rush out and make purchases, as well as a relatively stable labour market, despite the economic crisis.
On the currency markets the euro is trading at $1.4226 and 86.46p sterling.
