Ryanair profits plunge 85%

Ryanair has announced a dramatic fall in profits for the first quarter of 2008, down 85 per cent to €21 million (£16.5 million) compared to the same time last year.

The low-cost airline blamed the high cost of fuel and the absence of the Easter holiday in this quarter.

"Oil prices almost doubled in Q1 from $61 to $117 (per barrel) as our fuel bill rose 93 per cent to €367million," commented chief executive Michael O'Leary.

"Fuel now represents almost 50 per cent of our total operating costs compared to 36 per cent last year."

Traffic was up 19 per cent to 15 million passengers compared to 2007, as was total revenues - up by 12 per cent to €777 million (£613 million).

A statement from the Irish airline describes oil prices as "subject to irrational exuberance" and insists Ryanair will not introduce fuel surcharges.

Ryanair claims to have one of the strongest balance sheets in the industry that will enable it to ride out the current high fuel prices.

It also claims to have hedged 90 per cent of its fuel at $129 for September and 80 per cent at $124 for the third quarter.