Low-cost carriers around the world have reported healthy earnings for the three months to June, and are talking optimistically about the second half.
Ryanair reports soaring passenger numbers - up 45% from the same period last year to 5.1 million - and revenues - up 26% to €245 million ($283 million) - on the back of its acquisition of Buzz this year. But it saw profit margins and yields fall 14%, which it blames on the cost of launching 50 new routes, and warns yields for the full year could be 15% lower than in 2002.
US carriers have seen slower passenger growth but better yields. Southwest Airlines posted second-quarter net income of more than $100 million, excluding $271 million in government aid. Chief executive James Parker credits high demand for holiday travel, and says earnings in the next quarter should beat last year. AirTran Airways posted net income of $21.9 million before one-off items, and chief operating officer Bob Fornaro says: "Our revenues are going up, costs are going down, and margins are widening." JetBlue Airways posted $14.6 million in net income for the quarter, but saw yield fall 5%.
Source: Flight International
