Ryanair's profit margins will shrink by one-third next year if oil prices stay at their current record level
Published:
2 October 2004 y., Saturday
Ryanair's profit margins will shrink by one-third next year if oil prices stay at their current record level but it will remain one of the few airlines in Europe to be making money, Michael O'Leary, the chief executive of the no-frills carrier, forecast yesterday.
Agreeing with a recent research report from Davy stockbrokers, Mr O'Leary said that at $50-a-barrel, Ryanair's margins would fall from 20 per cent this year to 14 per cent in 2005-06 but it would still be profitable even if the price of oil hit $60.
The Ryanair chief repeated his prediction that there would be a "bloodbath" this winter among Europe's airlines and he attacked the decision by its low-cost rival, easyJet, to take on Ryanair in its backyard by launching three new routes from Gatwick to Ireland.
Mr O'Leary labelled his opposite number at easyJet, Ray Webster, the "John Kerry of the European airline industry" for the way he had "flip-flopped" by first backing away from head-to-head competition with Ryanair and then deciding to compete directly with it on routes to Knock, Shannon and Cork.
Šaltinis:
news.independent.co.uk
Copying, publishing, announcing any information from the News.lt portal without written permission of News.lt editorial office is prohibited.
The most popular articles
The European Parliament's proposal for its own operational budget for 2011 includes the financing of measures in preparation for enlargement with Croatia.
more »
Links between business and the academic world need to be strengthened but higher education institutions must retain their autonomy and public support, says a resolution adopted on Thursday by the European Parliament.
more »
The Spanish Minister of Economy and Finance, Elena Salgado, will present the additional fiscal tightening measures set out by the Spanish Government to her eurozone (Eurogroup) counterparts on Monday; the measures were required by Spain’s European partners as a condition of approving the plan to bolster the euro on 9 May.
more »
The European Commission has opened an in-depth investigation under EU State aid rules into capital injections destined to two subsidiaries of state owned company Elan Skupina in Slovenia.
more »
GDP growth in the EU expected to gradually pick up, though recovery less robust than past upturns.
more »
The EESC tabled its opinion on the regulation of alternative investment funds, such as hedge funds and private funds. Although endorsing the much debated proposal of the European Commission, the EESC calls for uniform risk data provision for all such funds and emphasizes their responsibility in triggering the crisis.
more »
Concluding the process and deciding on the schedule for releasing the funds agreed on for Greece, as well as examining and learning lessons from the crisis for the governance of the eurozone, will be the focus of the discussions of the heads of state and government at the meeting in Brussels this Friday.
more »
The EU pavilion at the world expo in Shanghai marks the first time the EU has presented itself to a large Chinese audience.
more »
Shanghai's World Expo offers visitors plenty of fun offering bizarre things to do at over 200 pavillions competing for attention.
more »
The European Investment Bank (EIB) is providing a loan of EUR 150 million to MVM Zrt. for the capacity increase and the extension of a high-voltage transmission network, partly constituting priority axes of the Trans-European Energy Network (TEN-E) in Hungary.
more »