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Ryanair’s Extras Boost Profits

After recent news showing the excessive charges made by Ryanair, much to their customers frustration, today they have revealed that their profits have soared by 17%.

The low-cost carrier reported a 17% increase in underlying net profits to £393.4 million for the six months to September 30 and increased its guidance for the full-year performance.

The airline’s half-year figures were boosted by a 10% lift in passenger numbers and higher fares, but it said it also saw a 22% rise in ancillary revenues, such as priority boarding, onboard drinks and baggage fees.

After initially indicating a figure of between £305 million and £326 million, Ryanair said forward bookings for winter were looking better than expected, forecasting net profits for the full year of between £331 million and £348 million.

Mr O’Leary said the group’s half-year figures were ‘testimony to the robustness’ of its low-cost model.

However, airlines across the board are showing a marked recovery in air travel as the recovery takes hold.

Last week, British Airways returned to half-year profit for the first time in two years thanks to a recuperation in business and premium traffic.

In August, Air New Zealand reported a fourfold increase in profits for the year to the end of June totalling £37 million.

Air China claimed excellent profits as well, with profit figures up 60% on last year, when the global economic downturn hit passenger numbers hard.

However, some UK airlines have claimed quite the opposite, saying that the disruption caused by the volcanic ash cloud was extremely costly, meaning that their full-year profits will be lower than expected.

Thomas Cook released a statement in August 2010, warning its full-year profits will be at the lower end of market expectations, following their £81.9 million bill resulting from the ash cloud, as well as the weaker value of the Euro against the Pound.