RYANAIR last Monday (4 November) once again came out with amazing profits and no hand out for shareholders for the half year to the end of September. Pre-tax profits were EUR150.9m, a rise of 71%, with passenger numbers totalling 7.84m, the increase 37%. Load factor was 88% but includes no shows and cancellations. Since the airline has a no refund policy it can legitimately sell the seat twice and also keeps the tax on the basis that the cost of refund equals that of the administration. One assumes the airline keeps the money. Interestingly it was unable to give away seats on unpopular flights which chief executive Michael O”Leary conceded was perhaps an indication that the unprecedented growth in cheap air fares to out of the way airports might be coming to an end. However the airline ended the six month period with EUR1,030m cash in the bank, much of it from pre-flight sales. In a few short years a whole section of the airline industry has changed from a credit business to cash up front. BA is slowly coming around to this view which should make a considerable difference to its bottom line.
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