Ryanair profits down, despite passenger increase

Profits at budget airline Ryanair has seen its profits fall by nearly half (47 per cent) in the first half of 2008 despite a rise in passenger numbers.

The group profits dropped to €215 million (£170.4 million).

During the rest of the year, the firm will cut average fares by between 15 and 20 per cent in an attempt to boost demand, according to chief executive Michael O'Leary.

"The economic recession has caused consumer confidence to collapse," he said, adding: "Ryanair is strongly positioned to take advantage of the opportunities that will inevitably arise from the financial crisis and economic recession over the coming year."

Mr O'Leary also repeated his plans for cheap transatlantic flights, which led to share prices rising by to 1.64 per cent to €2.82.

In a separate interview with the BBC, he said an economic recession would make Ryanair stronger.

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