Passengers on the rise for Ryanair, but profits slide to €105m.

Irish airline Ryanair has reported a fall in profits of €375 million to €105m (£90.8m) for the year to 31 March 2009, compared to the previous year.

The trading announcement did say that the budget carrier has seen passenger numbers grow to 58.5m from 50.9m, and this has had a positive impact on revenue with an 8% increase to €2,942m.

In the last year, Ryanair has sought to grow its business and has introduced 223 new routes, six new bases – at Alghero, Birmingham, Bologna, Bournemouth, Cagliari and Edinburgh – and it has added 18 new aircraft to its fleet.

However, as with many recent trading statements from across the airline industry, the fall in profits has primarily been attributed to high fuel costs, which have risen by 59%. The other major factor in the fall is that Ryanair had to write down its investment in rival Aer Lingus by €222m following a major drop in its share price.

Ryanair’s CEO, Michael O’Leary, said: “Despite the global recession and record high oil prices Ryanair’s lowest fare/lowest cost airline services again delivered traffic growth and profitability, which demonstrates the fundamental strength of the Ryanair model.”

Ryanair has stalked controversy in the last couple of months by announcing it is planning to axe check-in desks by 1 October 2009, and had previously considered implementing a ‘fat-tax’ for large passengers. The airline said it had decided against the latter, but it has not dismissed other ideas in order to raise revenue to make up for its low fares.

The airline has recently been ranked in last place for its website usability in consultancy firm Webcredible’s research, but on a positive note, it has been looking to improve its passenger service, and can boast its ranking as the number one on-time major airline.

In looking to the future, Mr O’Leary said the company would: “[...] continue to lower fares to stimulate traffic growth, maintain high load factors and win more shorthaul traffic from our high fare competitors.”