(RTTNews) - European fares airline, Ryanair Holdings Plc (RYAAY: News ), reported significantly higher profit for its half year, driven primarily by a 42% decrease in fuel costs, partially offset by a 17% decline in average fares. The company foresees loss for the forthcoming quarters of the ongoing fiscal, yet confirmed its profit view. Further, the group said there is little progress in its discussions with Boeing for an order of 200 aircraft for delivery between 2013 and 2016.

The Ireland-based group reported higher half-year Profit before tax of EUR 419.4 million versus EUR 105.2 million last year.

Ryanair's profit attributable to equity holders of parent grew to EUR 373.5 million or 25.21 cents per share from EUR 95.3 million or 6.41 cents per share. Excluding an impairment of EUR 13.5 million on Aer Lingus shareholding, profit rose to EUR 387 million or 26.13 cents per share from EUR 314.6 million or 14.43 cents per share a year ago.

Total operating revenues from continuing operations declined 2% to EUR 1.77 billion from EUR 1.81 billion in the comparable period, as average fares fell by 17% due to the recession, price promotions and adverse euro/sterling exchange translations. Operating margin climbed 13 points to 26%.

Decline in scheduled revenues outweighed the growth in ancillary revenues. Scheduled revenues declined to EUR 1.42 billion from EUR 1.48 billion, driven by dip in average fares, price promotions, lower baggage penetration rates and adverse exchange rate translations. Ancillary revenues grew by 8% to EUR 346.3 million from EUR 322.1 million. Ancillary revenues were lower than the increase in passenger volumes, as average spend per passenger fell on reduced excess baggage revenues and negative impact of the movement in euro/sterling exchange rates.

Traffic grew by 15% to 36.4 million from 31.6 million, however total revenue per passenger declined 15%, as ancillary revenues and average fares fell, whilst Load Factor remained flat at 85% during the period.
Fuel contributed to 35% of the total operating costs. Unit costs excluding fuel fell by 5% and including fuel they fell by 27%. During the period under review, total operating expenses decreased by 17% primarily due to lower fuel prices, offset by the higher level of activity and increased operating costs associated with the growth of the airline.

Maintenance costs, aircraft rental costs, route charges and airport and handling charges rose 32%, 18%, 15% and 5%, respectively, year-over-year. This reflects on expansion in leased air-fleet, increased passenger volumes, higher number of sectors flown and an increase in average unit rates.

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