Ryanair: traffic rises, but Q3 loss

By Doug Newhouse |


Ryanair, the world’s largest international scheduled airline has reported a third quarter loss of €35m ($47.3m) despite traffic growth of 6% to 18m in its third trading quarter.

 

The airline says that revenue per passenger fell by 6%, as strong ancillary revenue growth offset a 9% fall in fares. Having said that, the airline says its full year profit guidance ‘remains unchanged’ at around €510m ($690m).

 

Ryanair CEO Michael O’Leary commented: “Our Q3 loss of €35m is in line with previous guidance and is entirely due to a 9% fall in average fares and weaker sterling. We responded to this weaker pricing environment last September with seat promotions and lower fares which stimulated traffic across all markets resulting in 6% growth in Q3, and a 1% rise in monthly load factors.

 

“Ancillary revenues grew by 13%, significantly faster than traffic growth due to strong customer uptake of reserved seating, priority boarding, and higher credit card fees. Excluding fuel, Q3 sector length adjusted unit costs fell 9% as Ryanair continues to deliver industry leading cost control”.

 

INCREMENTAL PASSENGERS…

In terms of delivering additional passengers to various airports, the airline said it opened four new Italian bases in Rome (Fiumicino), Catania, Lamezia, and Palermo and is also establishing four new bases this spring at Brussels (Zaventem).

 

The airline says it expects to grow its annual passenger numbers from 80m to over 110m within five years and it adds that most of these are expected to us primary airports.

 

Once again, Ryanair made reference to its customer service changes and the provision of ‘a free small second carry-on bag’ as part of its new customer service charm offensive with the City. However, the airline has declined a request from TRBusiness for an interview with CEO Michael O’Leary.

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