Ryanair Cuts Flights From Stansted

Ryanair said it intends to cut its services from London Stansted this winter by 20%, reducing flights to some destinations and temporarily cancelling others. The Irish-based carrier said the services affected would otherwise be making a loss.

Ryanair defended its decision by attacking the doubling of airport charges at Stansted since April. Its announcement came as it unveiled a 20% rise in profit for the three months to the end of June. It made a pre-tax profit of 139m euros (£94m; $191m) in the quarter, up from 116m euros a year earlier.

Ryanair chief executive Michael O'Leary also attacked the level of service he said the airline got from Stansted and the airport's owner, BAA.

"The current service provided by BAA at Stansted is nothing short of appalling," he said.

"We continue to press for the break-up of the BAA airport monopoly which provides abject facilities, a third-rate service and charges extortionate prices."

BAA is the UK's main airport operator, owning seven airports in total, also including Heathrow and Gatwick.

Ryanair said its quarterly profits, which beat market expectations, were boosted by an 18% rise in passenger volumes.

It said that average ticket prices had been flat during the three months and were expected to fall in the second quarter from July to September.

However, for its full year to March 2008, it said profit growth would be upheld by the decision to reduce capacity on its non-profitable winter routes from Stansted, which would help to keep costs down.

It now expects its annual profits to rise 10%, compared with its earlier forecast of 5%.

Shares in Ryanair ended the day some 11% higher.
 

31 July 2007