Ryanair still bullish on targets despite bad news for airlines

Ryanair remains bullish about meeting its financial targets despite the almost daily drip of bad news for the airline sector, chief executive Mr Michael O'Leary said yesterday.

He said the low-cost airline was confident of hitting its forecast for profits after tax of €235 million for the year to the end of March last. "We are still very confident that we will achieve that number," he said. "We won't beat it but we won't fall short."

The group also reiterated its commitment to achieving profits this year within current analyst projections, which would indicate growth of almost 20 per cent.

Speaking in London at his first briefing following the acquisition of rival Buzz, Mr O'Leary dismissed any impact to the airline from the current SARS scare.

He said that while long-haul routes might suffer there could, if anything, be a benefit to short-haul operators like Ryanair as travellers opt to avoid areas which have been affected by the outbreak.

He also said Ryanair had suffered no impact from the global fall-off in air travel as a result of the Iraq crisis.

Passenger numbers this month would see a rise similar to the 39 per cent recorded in March, Mr O'Leary said. From May, that figure should rise to 60 per cent year-on-year following the completion of the acquisition of Buzz.

The airline expects the Buzz deal to be cleared by the British Office of Fair Trading within the next week.

Ryanair is in talks with around eight airports around Europe with a view to establishing new operational hubs. It is also in discussions with more than 50 airports about the establishment of new routes.

Mr O'Leary said Ryanair remained committed to lowering ticket prices by 5 per cent each year over the next five years.