Ryanair Q2 Profit Up 35 Percent

LONDON (AP) — Budget carrier Ryanair PLC on Monday reported that second-quarter profit rose 35 percent as cost cuts helped offset a 4 percent drop in revenue.

For the three months ending Sept. 30, Ryanair reported a net profit of euro250.5 million ($370 million), compared to euro185.8 million a year earlier. Revenue fell to euro992 million from euro1.03 billion.

The airline cut operating expenses by 16 percent to euro694 million pounds, including a euro176 million reduction in fuel costs.

Still, Ryanair shares fell Monday after Chief Executive Michael O'Leary said the company might rein in expansion plans if it cannot extract concessions from Boeing for the purchase of 200 aircraft between 2013 and 2016.

"We see no point in continuing to grow rapidly in a declining yield environment, where our main aircraft partner is unwilling to play its part in our cost reduction program by passing on some of the enormous savings which Boeing have enjoyed both from suppliers and more efficient manufacturing in recent years," O'Leary said.

"We would prefer to grow, but if Boeing doesn't share our vision, then I believe that Ryanair should change course before the end of this fiscal year and manage the airline over the next three years to maximize cash for distribution to shareholders."