Ryanair makes £1.1bn profit despite cutting fares

Ryanair defies terror threat and weak sterling to report profit spike

Ryanair flew 120 million passengers during the financial year, an increase of 13 per cent on 2016. Unit costs fell by 11 per cent.

For the year, profit before tax was 1.47 billion euros, down from 1.72 billion euros a year ago.

The company also announced the launch of its Ryanair Sun charter airline, which will have a Polish AOC and management team.

Its 1.32bn euro profit for 2017 was at the lower end of its forecast range of 1.3bn euros to 1.35bn euros, but in line with analyst forecasts.

Revenues were up two per cent to €6.6bn.

Ryanair said it expects an 8 per cent increase in 2018 net profit as it warned of continued negative impacts of Brexit.

"We reacted to these challenges by improving our customer experience, and stimulating growth with lower fares", Ryanair CEO Michael O'Leary said.

The company further said it has raised medium term guidance for ancillary sales to 30 percent of total revenues by March 2020, so it is well on track to achieve this target. The new aircraft will be additions to the carrier order of 100 Boeing 737 Max 200s, which is a more fuel efficient version of the carriers workhorse 737, with deliveries expected to start in Fall 2019.

Sterling was expected to continue exert a drag and together with continuing excess capacity in Europe was expected to drive a decline in its average fares of between 5% to 7% during fiscal year 2018.

"In the absence of such certainty, or direction, we will continue to pivot our growth away from the U.K.", Ryanair said.

On Tuesday, the European budget airline said in its fiscal year 2017 annual report that it's extending 10 of its planned lease returns in 2018 and 2019 to help boost fleet growth.

Its punctuality fell from 90% the previous year to 88%.

With legacy competitors in Italy, Germany, Romania, and Poland undergoing deep restructuring, the scale of the Irish carrier's airport growth negotiations is accelerating.

But although the airline's share price dipped in response to that caution - down 0.3%, or €0.05 to €17.96 in late morning trading - commentators seemed pretty sanguine.

On the issue of Brexit, the carrier states it its concerned with the "significant uncertainty" surrounding flights between the United Kingdom and European Union from March 2019, as it awaits clarity on Britain's future trading relationship with the EU.

Related News:

  • Intel Has A Credit Card Sized Computer

    Intel Has A Credit Card Sized Computer

    Intel unveiled the Compute Card at CES earlier this year and is now gearing up to ship the devices in August. Sharp, for example, is showing off digital signage while Seneca and Foxconn are making mini PCs .
    LeBron James' home vandalized with racial slur

    LeBron James' home vandalized with racial slur

    The graffiti was gone by the time officers arrived because property management had painted over it. We know this is going to happen for, racism is going to be a part of time forever, I believe.
    Trump again urges Senate to loosen rules, push healthcare and tax reforms

    Trump again urges Senate to loosen rules, push healthcare and tax reforms

    The filibuster in the Senate allows lawmakers to hold up legislation if a bill does not pass with 60 votes . "Sen. But McConnell and Senate Republicans reworked the rules so that the 60-vote rule no longer applied.
  • Economy grows at 3.7% in Q1, fuelled by household spending, business investment

    Economy grows at 3.7% in Q1, fuelled by household spending, business investment

    Economists had estimated the growth rate for the quarter would be 3.9 per cent, according to Thomson Reuters. The economic growth outpaced that of the United States, which grew at 1.2 percent in the same quarter.

    Cleveland fires 1 officer, suspends 2nd in Tamir Rice shooting

    Loehmann was sacked for inaccurate details on his job application, not for the Rice shooting , The Associated Press reported. The emergency dispatcher was suspended from work for eight days for violating protocol in her handling of the call.
    David Wagner to ring best man Klopp when playoff win sinks in

    David Wagner to ring best man Klopp when playoff win sinks in

    In remarks to the crowd, club chairman and local businessman Dean Hoyle paid tribute to Wagner and all those working at Huddersfield .
  • Incredible Arsenal video compares FA Cup winning goal in 1979 & 2017

    Incredible Arsenal video compares FA Cup winning goal in 1979 & 2017

    Regardless of his decision, I think it was important for him to win this FA Cup . "Hopefully, he'll be there next season". The 32-year-old had played only 37 minutes all season after coming off the bench in last weekend's win against Everton .
    Uber Fires Driverless-Car Executive at the Center of Google Legal Battle

    Uber Fires Driverless-Car Executive at the Center of Google Legal Battle

    Uber reportedly tried to convince Levandowski to cooperate for a period stretching across a few months, albeit unsuccessfully. The judge theorized that Levandowski could have used Waymo's documents himself even if he did not turn them over to Uber.
    Pope says Egyptian Copts killed by IS were 'martyrs'

    Pope says Egyptian Copts killed by IS were 'martyrs'

    In April, twin suicide bombings struck two churches on Palm Sunday, and in December, a suicide bombing targeted a Cairo church. The pontiff took the occasion to condemn the attacks, repeating his statement that killing in the name of God is blasphemy.
  • Trump repeats criticism of Germany, Merkel stands by stance

    The tweet comes following remarks by Merkel on Sunday that appeared to stress a need to pivot away from the U.S. and the UK. Trump said the country was "very bad" on trade , and he took issue with German cars being imported into the US.

    President Trump comes out in support of his son-in-law Jared Kushner

    And no communications strategy, however brilliant, has a chance of succeeding so long as Trump has access to his Twitter account. In a statement issued to the New York Times , Mr Trump said that his son-in-law was "doing a great job for the country".

    JA Happ to start against Reds tonight after coming off DL

    As infielders moved to catch Jose Peraza's popup with nobody on, a fan sprinted toward the infield from along the third-base line. Travis has now hit safely in 14 consecutive contests and is batting a whopping.473 over that stretch, with 15 RBI.


Most liked

Scott Pelley out as 'CBS Evening News' anchor
More significant to Pelley's continued tenure, his newscast had the largest audience decline among the three network newscasts. And Pelley continued to do as many as 20 pieces each season for 60 Minutes , a schedule that left him stretched rather thin.

Angela Merkel says can develop India ties and keep up US relationship
For his part, Modi declared that "the world needs a strong leadership, which is demonstrated by Chancellor Merkel". Modi said that Germany will always find India as powerful, prepared and a capable partner.

United Kingdom says threat remains critical as police hunt Manchester attacker's network
When the threat level was raised, the military was deployed to key locations, including the Houses of Parliament. Witnesses reported seeing armed police storm a bus on its way to the town centre at around 7pm.

Police make fresh arrest over Manchester bombing
Rudd declined to comment on exactly what was known about the 22-year-old bomber, during an interview with Sky News. The CCTV still picture was taken in Manchester city centre on the day of the attack last Monday.