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Ryanair's profits and flight prices drop

Ryanair has responded to news it is making far less profit than it was a year ago by lowering prices further in a move that is sure to see more people flying into Belfast.

The low-cost airline reported an 85 per cent profit drop in the last quarter, but still made €21 million (£16.5 million) in the past three months.

Predictions for passenger growth remain high, with Michael Cawley, Ryanair's deputy chief executive, suggesting that lower fares could keep people flocking to Belfast and other locations.

"The overriding imperative for us is to increase passenger numbers by 14 per cent this year. We reckon it will take a five per cent reduction to do that," he told the Irish Times.

Marketing costs have been cut by the firm, with its Stansted Airport sales and marketing department closing and many staff relocating to Ireland, "due to the tight control on expenditure and the increased focus on internet based promotions".

Flights to Belfast may be among new flight price reductions set out by Ryanair, with ten per cent decreases expected to come into action for a number of different destinations. ADNFCR-1390-ID-18706146-ADNFCR

29 July 2008

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