Ryanair plays it tough over Edinburgh cost cutting By MARTIN FLANAGAN Published on Monday 21 May 2012 09:53 RYANAIR today remained defiant on its costcutting plans at Edinburgh airport if the new owner refuses to cut it a better deal. Michael Cawley, Ryanair's deputy chief executive, said the airline remained available for talks with Global Infrastructure Partners (GIP), which last month made a successful £807 million bid for the airport. "Right now we are waiting for new management or existing management to get their house in order after the sale, and we are available to speak with them at any time," Cawley said. I have an open mind. I would not characterise it as more of less hopeful [that a deal will happen]. But for now we are sticking with our plans for reduced services at Edinburgh. We have plans made without Edinburgh for this winter. Last month Ryanair revealed it was cutting eight routes from the airport - including Bratislava, Frankfurt, Gothenburg and Poznan - after failing to win reduced landing fees. The group's five-year base agreement at Edinburgh runs out in October. Analysts have estimated the slashing of routes could cost the airport at least 300,000 passengers this winter, with further cuts not ruled out. Ryanair today revealed net profits rose 25 per cent to €503m (£406m) in the year to end-March from €401m. In-flight sales jumped 11 per cent to over €886m. However, market attention focused on the warning that net profits this year would fall up to 20 per cent - to between €400m and €440m - due to rising fuel prices and economic headwinds. It would be the first annual fall in Ryanair's profit since 2009. Michael O'Leary, the airline group's chief executive, said: "Recession, austerity, currency concerns and lower fares at new and growing bases will make it difficult to repeat this year's record results. If we were guiding a blue sky scenario with rising fares into next winter, we would be nuts. The airline hoisted fares 16 per cent in the year to end-March to help offset 30 per cent jump in fuel bills, but said fare rises this year would be restricted to about 3 per cent. Chief financial officer Howard Millar said: "There's a poor environment, it's the fourth year of this, and repeating [fare growth of] 16 per cent is not going to happen." Ryanair said it expected to face an extra €320m of fuel costs this year. The company confirmed it would pay out €483m to shareholders in just its second dividend since flotation in 1997, meaning a near-£14m payout for O'Leary from his 3.55 per cent stake.