Ryanair says profits down more than a quarter

Marco Green
May 21, 2019

Profit after tax for the period was €1.02bn, down from €1.45bn in the prior year, according to annual results from the airline.

The news sent the airline's shares tumbling close to a four-year low yesterday, closing 51 cents, or 4.8 per cent, down at €10.29, and sparking a wider sell-off in the sector.

"Assuming revenue per passenger (RPP) growth of 3%, we are guiding broadly flat group profits".

"This will range from 750 million euros (£660m) if RPP rises 2%, up to 950 million euros (£830m) if RPP rises 4%".

The U.S. Transportation Department said that July 2018 was the all-time busiest air travel month, with 75.8 million passengers.

Ryanair had cut its profit forecast for the year to March 2019 by around a fifth in two profit warnings between October and January, blaming strikes, higher oil prices and overcapacity in Europe.

Ryanair posted its weakest annual profit in four years on Monday and said earnings could fall further next year as Europe's largest low-priced carrier grapples with overcapacity, Brexit and delays in delivery of the Boeing 737 Max.

The company has become the first Chinese carrier to "lodge claims" over the long-term grounding of its 14 Boeing 737 Max airplanes on March 11 and delayed delivery the previously ordered aircraft.

"We continue to have utmost confidence in these aircraft which have 4pc more seats, are 16pc more fuel efficient and generate 40pc lower noise emissions", the airline said.

"Short-haul capacity growth and the absence of Easter in Q4 led to a 6% fare decline, which stimulated 7% traffic growth to over 139 million (142 million guests including Lauda)", he said.

"Ancillary sales performed strongly up 19% to €2.4 billion, which drove total revenue growth of 6% to €7.6 billion", the CEO added.

Other reports by Click Lancashire

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