Ryanair reported €1,242 million profits
Ryanair has reported a 43% jump in full year profits to €1,242 million.
The increase was driven by a number of factors including an 18% rise in traffic to 106 million passengers, a five percentage point increase in load factor to 93% (up from 83% two years ago) and a 1% drop in average fares to €46 after unit costs fell 6%.
Additionally, the airline has launched a new website and mobile app in October while five-year pay and conditions deals have been agreed with all 84 pilot and cabin crew bases.
Ryanair chief executive Michael O’Leary, said: “The 2016 financial year was one in which we delivered significant traffic and profit growth in all 4 quarters (despite an average oil price of $90bbl as a consequence of hedges put in place in 2014) as our AGB service programme is attracting millions of new customers to our lowest fare/lowest cost model.”
The airline also took delivery of 41 new Boeing 737 aircraft last year which helped it open seven new bases and 100 new routes and so becoming the first airline to carry more than 100 million passengers in a calendar year.
The profit boost for the year ending March 31 also comes despite a number of problems for the airline.
More than 500 flights were cancelled by the airline following the Brussels terrorist attacks while more recent “unjustified” strikes by Italian, Greek, Belgian and French air traffic control unions caused more than 200 cancellations.
However, the airline remains positive about the future and is 2% better booked for this year’s peak summer months but with lower fares.
The pricing is predicted to remain soft for the year, especially in the first and fourth quarters due to a lack of Easter holiday benefits, while capacity additions generally in Europe are higher than normal as rival airlines take advantage of the cheaper fuel prices.
The airline also took the opportunity to reiterate its belief that the UK should remain in Europe. At the end of its report it added: “As the UK’s largest airline, Ryanair strongly believes that the UK economy and its future growth prospects are stronger if it remains a member of the European Union.
“One of Europe’s great success stories was airline deregulation in the late 1980s which allowed Ryanair to break up the high fare cartel of Europe’s flag carrier airlines, and has enabled us to transform air travel, tourism, economic growth and jobs all over Europe.
“Ryanair is actively campaigning for a ’Remain’ vote in the referendum on June 23.
“If the UK leaves the EU then this, we believe, will damage economic growth and consumer confidence in the UK for the next two to three years as they begin to negotiate their exit from the EU and re-entry to the single market in very uncertain market conditions.”
Source: TTG – Ryanair reports 43% profit boost
