Ryanair may increase 2010 forecast

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Ryanair, the largest budget carrier in Europe, has indicated that it may increase passenger number forecasts for next year and intends to move ahead with its plan to add 200 planes to its fleet, as the region shifts to low-cost air travel in the economic downturn.

Earlier, the airline predicted that it would handle 67 million passengers in the 12-month period that ends in March 2010, which would be a 16 per cent increase over its current financial year. Michael O’Leary, the carrier’s CEO, said, in a Bloomberg News interview: “If anything, we’ll be revising our numbers up.”

“We’re probably the only airline in the world that’s interested in buying another 200 airplanes,” O’Leary said during the interview.

Ryanair raised profit forecast for the full year on 2 February, when it reported that falling oil prices have more than offset the lower fares it has offered to deal with declining passenger demand. The carrier’s net income so far this year, with the exclusion of one-time costs or gains, is in the 50-80 million euro range, according to the Dublin-based budget airline.

O’Leary noted that projections would not be impacted by the recent increase in crude oil prices, as Ryanair is hedged at around 75 per cent against price rises.

“I think our growth will be even stronger this year,” O’Leary commented, adding: “People are increasingly making their travel decisions on price. We’re seeing a dramatic switch in passengers across from high-fare, fuel-surcharging airlines.”

Thanks to www.bloomberg.com for the above quotes, for more information on this article please visit their website.

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