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On Monday, the International Air Transport Association (IATA) announced that global airline losses will grow by 25 percent this year, to $6 billion. "We think the biggest driver in our numbers, certainly over the last six months if not 12 months, is fuel surcharges being levied by competition," O'Leary said. UK low-cost rival easyJet Plc, like Ryanair has not introduced an oil price surcharge, last week said that fuel bills would erode profits this year. The UK airline's first- half loss grew to £22.3 million after fuel costs rose 51 percent, eroding the benefit of a 25 percent surge in passengers.
"If anything, the low cost airline boom is increasing," O'Leary remarked to reporters after blowing out 20 candles on a Ryanair birthday cake. "There is no competitor out there in Europe that threatens Ryanair at our present cost base," O'Leary said and he confirmed that the airline will carry 70 million passengers in five years time. O'Leary said that later this year, Ryanair monthly traffic would top 3.5 million passengers, overtaking the total worldwide traffic of British Airways. "The very fact that a Mickey Mouse Irish airline can start in a field in Waterford 20 years ago and in 20 years overtake the world's self-styled, self proclaimed favourite airline is testament to the almost unstoppable demand for low airfare travel around Europe," he said. Ryanair, operates 229 routes across 20 countries, and it expects to carry more than 35 million passengers this fiscal year using 96 aircraft, compared with 8.1 million passengers and 36 aircraft in the year ended March 2001. Ryanair carried 27.1 million passengers last year. © Copyright 2007 by Finfacts.com |
