Ryanair annual profit up 26pc

DUBLIN, May 23 (AFP): Ryanair said Monday that its annual net profit rose by a quarter but Europe's biggest no-frills airline also warned of a tough outlook as high fuel costs force it to ground planes and hike fares. Ryanair said profit after tax jumped 26 per cent to 401 million euros ($575 million) during the group's financial year ending in March compared with 200910, as passenger traffic grew by eight percent and fares rose 12 per cent. Chief executive Michael O'Leary said the results were pleasing amid "higher oil prices, the global recession, and volcanic ash disruptions". The airline said it would ground 80 aircraft during the European winter, compared with 40 in 200910, in a bid to reduce costs. "Higher oil prices next winter, and the refusal of some airports to offer lower charges, makes it more profitable to tactically ground up to 80 aircraft," Ryanair said in its earnings statement. Although the airline has hedged most of its fuel costs it said the overall economic outlook might dampen the travel market and was forecasting just four percent traffic growth in its current financial year.