Ryanair boast strong profits and a rise in traffic for Q1 2009.

Budget airline, Ryanair, has announced an increase in Q1 net profit of 550% to €136.5 million (£118m), thanks largely to a 42% drop in fuel prices, and a reduction in staff, airport and handling costs.

In a statement unveiling the company’s latest figures, highlights include a rise in passenger numbers, which have increased to 16.6 million, and an announcement that the airline is set to open its 33rd base at Porto, Northern Portugal, in September, following the success of its latest additions at Pescara and Trapani in Italy.

Ryanair’s CEO, Michael O’Leary, was pleased with these latest results: “Thanks to 13% reduction in average fares we grew traffic by 11%, which was a robust performance in a deep recession, when many of our competitors were cutting flights and reporting increased losses.

“Most of our competitors have recently reported declining traffic, falling yields and substantial losses. This is accelerating the pace of airline closures and consolidations. Our successful roll out of new routes and bases demonstrates the fundamental strength of Ryanair’s lowest fares model, which even during deep recessions continues to deliver growth.”

Earlier this month, ICM reported ^[1] that Ryanair would be withdrawing 40% of its flights from Stansted this winter, due to the increased costs of operating out of the airport. In its quarterly results statement, the budget carrier reiterated this promise and said its Irish bases would also see a drop in flights as it moves a substantial number of its aircraft to European bases, which don’t carry the £10/€10 tourist tax.

Mr O’Leary predicts that the damaging tourist tax will continue to play a role in the collapse of the British and Irish tourism economy in late 2009 and 2010.

However, the CEO said the company has been buoyed by other airlines’ losses: “Many of our competitors are guiding increased losses and declining traffic.

“The winners in a deep recession will always be those companies like Aldi, Lidl, McDonalds and Ryanair who offer the lowest prices and the best service to consumers. We will continue to expand as others fail.”

The airline has also announced that passengers are now able to book same day travel, on all flights, up to six hours before the scheduled departure times through its website.