Ryanair keeps marketing costs in check

Ryanair spent €65.8 million on “marketing, distribution and other expenses” in the six months to end-September, 7% less than in the same six months last year.


However, the no frills airline stepped up spending during the peak summer season. The July-September period saw it spend €31.6m, 3% higher than Q2 08.


The breakdown between the three elements of this reporting line are not revealed. It only says that “increased focus on internet promotions” is one of the ways it keeps this cost in check.


During the six months the airline carried 36.4m passengers, a 15% increase on the first half of 08. Load factors remained constant at 85%.


Ancillary revenues accounted for 20% of the six month’s total of €1.8bn. Almost all of the €1.8bn of revenue will have been transacted online, which makes Ryanair.com one of the biggest travel websites in Europe.


Overall, the carrier reported a profit after tax of €387m (£350m), giving a net margin of 22%.


Meanwhile, Ryanair’s fares are expected to drop by 20% over the next six months, even though it means the airline will make a loss during that period. Chief executive Michael O’Leary said fares had already fallen 17% this financial year.


 

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