Ryanair Records 22% Drop In Profits

• News
• Published: 21 Jul 2010 in Travel and Travel Insurance

Increasing fuel costs and "unnecessary" disruption caused by Iceland's volcano contributed to Ryanair's 22% drop in profits, it has been revealed. 

The Irish carrier recorded exceptional costs of 50 million euros (£42.4 million) after 9,400 of its flights in April and May were cancelled, with the loss of 1.5 million passengers due to the closure of European airspace. 

Ryanair had refused to offer passengers compensation beyond the price of their ticket, but later agreed to pay for the accommodation and refreshments of passengers who were unable to get home. 

The low-cost airline said it was continuing to process claims under the "unfair and disproportionate" EU regulations and said it would not know the exact cost of cancellations for some time. The estimate of 50 million euros meant pre-tax profits for the company's first quarter to June 30 fell to 104.6 million euros (£88.7 million) from 134.6 million euros a year earlier. 

Fuel costs rose by 34% to 287 million euros (£243.3 million) due to higher oil prices and the introduction of new routes. 

It is due to open its 42nd and 43rd new bases in Barcelona and Valencia in September and November respectively and said it continued to see "enormous opportunities" to grow the business across Europe.