Ryanair's Q1 profits tumble 85 per cent to $33 million

Europe's biggest low cost carrier, Ryanair Holdings Plc, has said its fiscal Q1 profit declined 85 per cent mainly on account of higher fuel costs.  Net income, excluding write-downs, tumbled to $33 million in the three months ended 30 June from $217 million a year earlier, the Dublin-based carrier said in a statement.

This despite sales gaining 12 per cent, to $1.2 billion.

Like airlines around the world Ryanair too is battling record oil prices and declining passenger numbers.

The carrier also said that average ticket prices could dip as much as 5 per cent over the year as fares are lowered to attract passengers.

Just as crude prices have begun to show a downward trend, hovering around the $123 mark today,  Ryanair has now said it has hedged 90 per cent of its fuel needs for September at $129 a barrel and 80 per cent for the third-quarter at $124 a barrel.

Earlier in the year the company had said it wouldn't hedge until oil prices went below the $100 a barrel mark. Consequently, it remained largely un-hedged for the first-quarter.