Ryanair profits slump on volcanic ash crisis

European budget airline Ryanair said on Tuesday that net profits slumped in the first quarter of the financial year. Chief Executive Michael O’Leary said the loss could be blamed on the closure of European airspace in April and May due to the volcanic ash disruptions.

Ryanair cabin Ruthann

“The unnecessary airspace closures in April and May, following the Icelandic volcano, led to the cancellation of 9,400 Ryanair flights, and the loss of almost 1.5 million passengers in the first quarter", said O’Leary.

He added however that passenger numbers rose eight percent in the reporting period to 18 million people.

Total revenues advanced 16 percent to 896.8 million euros on the back of rising passenger numbers and a 5 per cent increase in fares.

The airline gave a cautious outlook and said it expected net profit for the full year to rise by 10-15 per cent, in line with previous guidance.