Europe's largest low-cost airline Ryanair on Tuesday posted a twenty per cent growth in adjusted full-year profit but said that if oil prices maintain a level of around $130 per barrel it would be only break even in the coming year.
The net profit without one-off items increased to 480.9 million euros in the year ending 31st March against 401.4 million in the previous year.
However, the Irish-based carrier said that its unadjusted net profit declined to 390.7 million euros from 435.6 million euros a year ago after it had included special items, including a write down of 91.6 million euros in the value of its stake in Aer Lingus.
The carrier said that it was placed better than all other carriers in Europe to take up higher oil costs, though it means profits come down in the short term.
In a statement, Ryanair chief executive Michael O'Leary said, "Based on forward bookings, we now believe it likely that average fares for the coming year will rise by approximately 5 percent and if oil prices remain at USD$130 per barrel, then we expect to accordingly breakeven for fiscal '09".
Mr. O'Leary further said, "Higher oil prices will increase the attraction of Ryanair's guaranteed lowest fares, as consumers become more price sensitive, as competitors increase fares and fuel surcharges, and as many European airlines consolidate or go bust, a development which we believe is inevitable if oil prices remain above USD$100 this winter".
