BA and Ryanair Airlines Announce Increased Profits
Ryanair see profits up on 09/10
During a year of uncertainty and 2 more travel businesses in Europe being taken by the recession, it was strange to find that two of the airlines in the UK which work the opposite ends of the spectrum when it comes to passenger satisfaction statistics, were this week announcing profits were up.
BA this week announced a first time profit for the airline for nearly 3 years, and going by what we have been told this week, it will probably take them around nine years to catch up on what they have lost over the last two, for sure.
And the opposite side of the coin, Ryanair, have announced that they have seen a record rise for the same period last year, with nearly 13% rise in takings, 10% more people traveling and a euro3.03 billion increase into their reserve funds.
But how long will this last, going from what the previous government announced last year with respect to increasing the duty on flight charges, taking into account the distance you fly.
This may not hit Ryanair too much, as the majority of their flights are within Europe – but people like BA and Virgin Atlantic have been bombarding the government with objections since the tax was announced.
During the next few months, stealth increases will pave the way to a potential country wide dip. With tax being the big increase over the next few months – basic rate VAT rises from 17.5% to 20% – which will no doubt put the price of fuel up around £0.05p per litre, and the price of beer up by around the same amount per pint.
At least this may put an extra shackle on drink driving, as looking at the rises – no one is going to be able to afford to do both!
