RYANAIR boss Michael O’Leary admitted that the low-cost airline was braced for a difficult winter as austerity measures and the eurozone crisis hit demand.
He said the Dublin-based carrier, which operates more than 1,500 flights a day across 28 countries, was expecting traffic growth of 1% between September and March – down from 7% this summer – following winter capacity cuts.
The update came as the airline, which expects to carry 79m passengers this year, reported an 11% rise in revenues in the quarter to June 30 to £1bn.
The increase reflects a 6% rise in traffic combined with a 4% increase in average fares.
However, Mr O’Leary said a 27% surge in fuel costs was behind a 29% slide in underlying pre-tax profits to £77.5m in the period.
Ryanair reported a 15% rise in ancillary sales, including baggage and administration fees as well as in-flight food and drink, to £223.9m. Ancillary sales now account for 22% of all revenues.
Ryanair, which has 294 planes, said growth in the first quarter was hit by the recession, austerity measures and heavy discounting at new bases.
