Ryanair 2008 Annual Report Download - page 6

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6
Chief Executive’s Report
Dear Shareholders
These annual financial statements reflect another year of strong growth by Ryanair despite higher
oil prices, intense competition and further unjustified price increases at regulated monopoly airports in
Stansted and Dublin. Despite these challenges, we in Ryanair have continued to grow our traffic, fleet,
and route network, while our adjusted net profit has risen by 20% to a new record of 1481m after tax.
Passengers flock to Ryanair because only we guarantee the lowest fares, and we alone guarantee no
fuel surcharges as well, not today, not tomorrow, not ever! As we enter an era of higher oil prices and
economic recession, passengers can safely make bookings on Ryanair.com secure in the knowledge that
they’re getting the lowest fares, and they are avoiding the unjustified fuel surcharges being levied by our
flag carrier competitors.
Ryanair’s Pricing
Ryanair is unique among European airlines in offering all passengers on all routes our lowest fare
guarantee. On those very rare occasions when passengers find a lower promotional fare on a competitor
airline for a similar itinerary then we will happily refund them double the difference. Ryanair’s growth
is driven by the widening gap between our guaranteed lowest fares, and the rising fares of most of our
competitors, who have repeatedly increased fuel surcharges over the last year. These fuel surcharges
will continue to drive price sensitive traffic towards Ryanair particularly in an economic downturn,
which is inevitable if oil remains at approximately $130 a barrel.
We are proud of the fact that Ryanair’s average fare (which includes baggage charges) has fallen
by 1% in the past 12 months to just 144, however, this trend is unlikely to continue given the present
high cost of oil. Our nearest price competitor in Europe (Easyjet) has an average fare which is 50%
higher than Ryanair’s, whereas most of our other competitors (including Aer Lingus, Lufthansa, BA and
Air France) are now charging short haul fares which are more than double those of Ryanair.
Europe’s lowest fares* Europe’s fuel surcharges*
*Source: Latest published annual reports *Source: Airline websites and Press
Releases as at 16.07.08
Average fares
Ryanair 144
Easyjet 166
Air Berlin 182
Aer Lingus 194
Lufthansa 1235
Air France 1267
British Airways 1324
Shorthaul
Ryanair £0
British Airways £20
Lufthansa 124
Air Berlin 125
Air France 131
KLM 135