Olivia Benson

http://www.manchesteronline.co.uk/business/general/s/144/144652_ryanair_profits_slide_after_fuel_price_rises.html

BUDGET airline Ryanair said passengers had failed to tune into a new onboard entertainment service offering videos and music for £5 per flight.

The no-frills carrier said an initial lack of availability of non-English language content programmes contributed to the ``disappointing`` trial, and meant the system may not be rolled out to the entire fleet.

It came as the Dublin-based group unveiled a 26 per cent fall in third-quarter net profits to £24m after it was affected by record fuel prices and intense competition.

Ryanair warned that fuel costs would continue to impact it in the future but added that it was still growing ``strongly and profitably`` in spite of the adverse market conditions.

Pilot

The company launched a pilot entertainment system in November, charging passengers an introductory price of £5, or seven euros, to watch Hollywood films, chart videos, cartoons and comedy classics.

It said it had resolved initial problems with the service but warned that, unless there was a significant improvement in customer take-up, it would not roll out the system across the entire fleet as planned.

It added: ``We remain believers in the potential of in-flight entertainment. However, as initially with CDs and the iPod, it may take some time for the travelling public in Europe to catch on to the technology.``

Ryanair said it would suffer no financial loss if it decided to discontinue the service at the end of the trial period.

During the three months to December 31, passenger numbers rose by 13 per cent to 6.9 million, increasing total revenues by 15 per cent to £203.4m.

Decline

The airline`s yield, or income per passenger, was in line with the same period last year and better than an expected decline of five per cent to 10 per cent.

Chief executive Michael O`Leary said this was partly due to the impact of fuel surcharges introduced by many of its competitors, which made Ryanair`s fares more attractive.

He said he expected further casualties among loss-making rivals as firms suffered from the increasing popularity of low-cost air travel. But the chief executive added: ``Fuel prices remain high and will continue to impact our future guidance.``

Advance bookings for the fourth quarter were in line with expectations with 50 per cent of seats sold, leaving Ryanair expecting yields to rise by up to five per cent. over the period