Dublin-based airline Ryanair has posted a record annual profit, reporting a 25% increase in full year profits to €503m. Revenue increased 19% to €4,325m as traffic grew 5% and average fares rose 16%. Unit costs rose by 13% due to a 30% increase in fuel costs and a 6% increase in sector length. Excluding fuel, sector length adjusted unit costs were flat.
However, the airline warned in a statement that worsening economic conditions in Europe and stubbornly high fuel costs would cut its profit to between €400 million and €440 million in 2013, which would make it the first year since 2009 that profit has fallen.
Michael O’Leary, CEO of Ryanair, stated, “We remain concerned about next winter as we have zero yield visibility but expect recession, austerity, currency concerns and lower fares at new and growing bases in Hungary, Poland, Provincial UK, and Spain will make it difficult to repeat this year’s record results,” also saying that, “Any increase in fares will only partially offset higher fuel costs.”