30 October 2000

Europe's largest low cost airline Ryanair attributed better-than-expected results to the high proportion of flight bookings received via its reservations website, Ryanair.com.

In a report to analysts circulated on Friday, Ryanair advised them to add around ten points to profits growth forecasts for the quarter to September 30.

Said the report: “The success of Ryanair.com ... has resulted in higher than expected savings in travel agents' commissions and computerised reservation system charges.” Thanks to the site, the ratio of direct bookings taken by the airline soared from 40% to 90% in six months.

Other factors were also credited in the bullish statement, among them the strength of sterling and the success of new routes. Passenger traffic had grown by 34% during the quarter, compared with a predicted 27%. Post-tax profits for Q3 should accordingly increase by 45% year-on-year.

News source: BBC Online Business News (UK)