Published on : Monday, February 6, 2017
Announcing an 8 per cent drop in profits for the last three months of 2016, Ryanair predicted “downward pressure on pricing for the remainder of this year and FY18 [the fiscal year ending in March 2018]”.
Ryanair carried an average of 313,000 passengers in October, November and December per day which means an average fare of €33 (£28.40). This sums up to a profit of almost 10 per cent: €3.29 (£2.84) per passenger.
Michael O’Leary, chief executive of Ryanair said that the fares this winter have fallen sharply and Ryanair continues to grow traffic and load factors strongly in many European markets. He continued saying that the falling yields were exacerbated by the sharp decline in Sterling following the Brexit vote.
Fares are expected to continue to fall, partly attributed to “the switch of charter capacity from Turkey, Egypt and North Africa into Spain and Portugal”. “Particularly adverse weather, repeated ATC strikes, and ATC staffing-related slot delays” caused the punctuality to slip from 90 to 88 per cent.
However, the passengers may lose the right to take two cabin bags on board. Ryanair said the policy was “the cause of increasing boarding gate delays”.
“While there may be opportunities to expand at certain UK airports (such as the recent extension of our growth deal at Stansted), we expect to grow at a slower pace than previously planned in the UK and will continue to switch capacity into other key markets around Europe.”
easyJet, Ryanair’s closest rival also reported 11 per cent more passengers in January this year compared with 2016. Norwegian, the third-largest budget carrier, said it carried 20 per cent more passengers during January than in 2016, which is mainly due to expanding long-haul routes.