Ryanair today reported strong first-quarter growth, with after-tax profits up 28 per cent to euro 23.2 million from a year ago and passenger traffic 42 per cent higher to 2.4 million.
But the company also took note of tougher conditions in the European airline market as it announced it was cancelling options to buy five new Boeing 737-800 airliners, in pursuit of better prices, and warned it could cancel more.
The company said the decision would not affect the delivery of 13 more 737-800s between late 2001 and the end of 2002 already agreed. It also said it was continuing to talk with Boeing about options on 12 other 737s.
"Unless their pricing begins to reflect the current market realities we will be forced in due course to cancel our remaining 12 options for 2004 and 2005 deliveries as well," the company said.
Ryanair said it was continuing talks to buy up to 50 second-hand 737s and said a weakening in lease rates and sale prices would enable it to meet its 25 per cent passenger growth aims for 2004 and beyond at very competitive prices.
Ryanair's main competitor in the budget sector, British low-cost airline easyJet, reported a 17.7 per cent rise in passenger numbers in July, to 666,973 from a year earlier, despite a downturn in the wider airline industry.
The growth rate for easyJet was slower than the 21 per cent leap in traffic in June, when the company carried 632,908 passengers.