Ryanair reports falling profits due to increased expenditure on fuel

Ryanair reports falling profits due to increased expenditure on fuel

Europe based budget Airline Company Ryanair has reported that their profits have fallen comprehensively due to increased spending on aviation fuel. The company spent 59% more than usual on their fuel expenditure and this has cut into their profit figures for the last quarter.

However, the good news was that they managed to increase the passenger numbers and revenues for the period. They are also now planning to introduce a £2.50 “check-in” charge for passengers wanting to take luggage on board its flights. However, no immediate hike in the ticket prices has been announced to counter the rising fuel expenditure.

Ryanair also has plans to introduce a web-based check in facility for passengers with hand luggage only. This would help them reduce check-in desk costs and lower baggage-handling fees. They are also working hard to cut other costs to improve upon their profit figures in the future.

The company announced that their after-tax profits for the third quarter increased by 6 per cent to €36.8 million. However, the profit margins have fallen down due to increased spending on fuel.