Ryanair reports 2008 profit rise despite high fuel costs

London  - Budget airline Ryanair Tuesday reported annual pre- tax profits of 419 million pounds (820 million dollars) but warned that ticket prices would have to rise to meet soaring fuel costs and charges.

The Irish budget carrier said it would not impose a fuel surcharge. But chief executive Michael O'Leary said the airline would ground up to 10 per cent of its fleet this winter to combat rising airport charges.

The pre-tax profits up to the end of March 2008 represent a rise of 17 per cent over the previous year.

O'Leary said the rising oil price had been mitigated through bulk buying at cheaper prices. But if fuel costs remained high, ticket prices would have to rise by about 5 per cent.

Results for 2008-09 would depend entirely on fuel costs, but if they stayed at present levels, Ryanair would probably only break even in 2009, he predicted.

Ryanair carried 50.9 million passengers during the past year, 20 per cent more than the previous year.

"No airline is better placed in Europe than Ryanair to trade through this downturn," O'Leary said. (dpa)

Regions: