Ryanair says profits down more than a quarter

Ryanair’s full year profits have fallen 29% to 1.02 billion euros (£890m), the company said.

The company saw traffic growth of 7% and a decline in fares of 6% in the year to March 31 2019.

Revenues at the low-cost airline grew 6% to 7.56 billion euros (£6.6bn) over the same period.

Michael O’Leary, chief executive of Ryanair, said he is expecting “broadly flat group profits” into the financial year ending in 2020 – when their reporting will include Lauda in the consolidated Ryanair Group – but this is dependent on “no negative Brexit developments”.

The company said: “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%.

“This guidance is heavily dependent on close-in peak summer fares, H2 prices, the absence of security events, and no negative Brexit developments.”

The company also said it had delayed the delivery of five Boeing 737-Max aircraft until winter – with no meaningful cost benefit from the delivery expected until the financial year ending in 2021.

It said: “We continue to have utmost confidence in these aircraft which have 4% more seats, are 16% more fuel efficient and generate 40% lower noise emissions.”

Michael O'Leary
Ryanair Chief Executive Officer Michael O’Leary (Jonathan Brady/PA)

Two Boeing 737-Max aircraft crashes – one in Ethiopia in March and another in Indonesia in October – killed 346 people, leading to the aircraft being temporarily grounded.

Michael O’Leary, chief executive of Ryanair, said: “As previously guided, Ryanair (excluding Austrian low-cost airline Lauda) reports a full year after tax profit of 1.02 billion euros (£890m).

“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).

“Ancillary sales performed strongly up 19% to 2.4 billion euros (£2.1bn), which drove total revenue growth of 6% to 7.6 billion euros (£6.6bn).”

The board of the company has also approved a 700 million euro (£610m) share buyback which will commence later this week and run over the next year.

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