Ryanair announces record level of profits and forecasts cheaper than expected summer fares

This article was originally published in English

Ryanair has obtained a benefit after taxes 1,920 million euros until March, which represents a 34% annual increase.

The total surpasses previous annual record of 1,450 million euros, achieved in the year until March 2018, and is ahead of the 1,905 million euros expected by the company’s analysts.

Ryanair’s bottom line was boosted by a 9% increase in passenger traffic, combined with a 21% rise in average ticket price. Despite this jump in consumption costs, the airline stated that it continues to reap a “competitive advantage” by keeping rates lower than its EU competitors.

Two weeks ago, the company’s CEO, Michael O’Leary, announced that the summer rates would probably lower than the risebetween 5% and 10% expected at the end of April. Although prices could change, she said, top rates were going to be “flat or modestly higher” than last summer.

“It’s a bit surprising that prices haven’t been higher, and we’re not sure if it’s due to consumer confidence or the recession in Europe, but we’re still seeing a strong travel demand during July and August,” O’Leary said in a presentation to investors.

“And if we have to apply discounts either cut rates to reach a load factor of 94% in April, May and June, so be it,” he added.

A year full of difficulties

Although Ryanair obtained good results, the year was not without difficulties. The airline registered higher personnel costs and a 32% increase in fuel costs, up to 5,140 million euros. The delays in deliveries They also reduced profits, especially due to the manufacturing crisis **Boeing.**Ryanair said it would be short of 23 Boeing 737s due for delivery by the end of July.

“We continue working closely with the CEO of BoeingDave Calhoun, Chief Financial Officer Brian West and the new Seattle management team to improve quality and accelerate deliveries of B737 aircraft,” Ryanair announced in an earnings release.

“There is still the risk that the Boeing deliveries continue to be delayed“added the airline. Based on these deliveries, Ryanair expects to increase its traffic by 8% next year, with a target of between 198 and 200 million passengers.

The firm said it is too early to offer a profit expectation for the period, warning that conflicts in Ukraine and the Middle East could negatively affect the total.