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Ryanair Profits Plummet 29%

Jon Wallis
July 30, 2012

LONDON -- Ryanair (LSE: RYA.L  ) opened 4% down this morning on news of a 29% slide in profits to 99 million euros, down 40 million euros from 139 million euros in 2011, despite 11% growth in revenue, up to 1,284 million euros, and a 6% growth in traffic, with passenger numbers up to 22.5 million. The fall in profits is attributed to a 27% increase in fuel costs, which account for almost 50% of total operating costs.

Ryanair CEO Michael O'Leary commented:

Q1 yield increases were dampened by the EU wide recession, austerity measures, and heavily discounted fares at our new base launches in Cyprus, Denmark, Hungary, Poland, Provincial UK and Spain. Excluding fuel, Q1 unit costs rose by 3%, as we rigorously controlled costs, despite a 2% rise in flight crew pay, higher charges at certain airports, and the impact on costs of stronger Sterling against the Euro.

Despite this challenging environment Ryanair