Ryanair has reported a 35% rise in after-tax profits for its third quarter to the end of December, defying the downturn in global air traffic after the September 11 attacks on the US.
'These are a very strong set of results which underline the resilience of Ryanair's unique low fares model,' chief executive Michael O'Leary said in a statement.
The company, Europe's biggest low-cost carrier, said Q3 after-tax profits were €28.8m, compared with €21.3m in the same quarter of 2000.
It said load factors rose to 79% from Q3 of 2000, an increase of three points, while passenger volume was up 30% to 2.7 million.
'It was important to respond to terrorism by stimulating air travel and promoting consumer confidence,' O'Leary said, referring to the slump after September 11.
Ryanair said average yields declined by 10%, which it said was 'due in large measure to the low fare promotions, which Ryanair launched immediately following September 11'. It said operating costs rose by 15%, a slower rate than revenue growth.
The company recently announced an ambitious expansion programme, placing an order for 100 new Boeing-737 airliners, the only type of plane Ryanair flies, and a major expansion of its route network.
Ryanair also announced today that it would place up to 26 million new ordinary shares, representing around 3.6% of the existing share capital of the company, to finance the purchase of the new Boeing aircraft. Details of the number and price of shares will be announced on Friday.
Ryanair shares closed 63 cent lower (9%) at €6.20 this evening in Dublin.
