Europe’s largest airline, Ryanair, reveals that its ancillary revenue – which includes inflight retail and F&B sales, reserved seating, priority boarding and car hire – now represents 28% (roughly $2,353m) of its total revenue.

 

This morning Ryanair reported a 10% increase in full-year profit after tax to €1.45bn ($1.7bn), as lower fares (down 3%) stimulated 9% traffic growth to over 130m passengers. Revenue jumped 8% to reach €7,151 ($8,406m).

 

The airline also says improved mobile and digital platforms have delivered a 13% increase in ancillary revenues (+4% per guest) to over €2bn. “Ancillaries now deliver 28% of revenue and we are well on track to achieve our 5-year goal of 30%,” it says.

 

Ryanair says it has actually managed to lower its checked bag fees while increasing the bag allowance (to 20kg). Also, it’s hotly debated cabin bag policy, which has been amended– it includes two bags, one of which goes in the hold FOC for non-priority guests – has apparently improved boarding and punctuality.

 

‘PLASTIC-FREE IN 5 YEARS’

Interestingly, Ryanair has pledged to be ‘plastic free’ within 5 years; something which will no doubt affect inflight retail and F&B suppliers.

 

 

 

Although the company has much to be positive about, it does remain concerned at ‘the likely impact of a hard Brexit’. “While there is a general belief that an 18 month transition agreement from March 2019 to December 2020 will be implemented and further extended, it is in the best interest of our shareholders that we continue to plan for a hard Brexit in March 2019,” said the airline in a statement issued this morning.

 

“In these circumstances, it is likely that our UK shareholders will be treated as non-EU and this could potentially affect Ryanair’s licencing and flight rights. Accordingly, in line with our Articles, we intend to restrict the voting rights of all non-EU shareholders in the event of a hard Brexit, so that we can ensure that Ryanair is majority owned and controlled by EU shareholders at all times to comply with our licences.”

 

This would result in non-EU shareholders not being able to vote on shareholder resolutions. In the meantime, Ryanair has applied for a UK AOC which it hopes to receive before the end of 2018.

 

Ryanair’s notoriously outspoken CEO, Michael O’Leary says: “We are pleased to report a 10% increase in profits, with an unchanged net margin of 20%, despite a 3% cut in air fares, during a year of overcapacity in Europe, leading to a weaker fare environment, rising fuel prices, and the recovery from our Sept. 2017 rostering management failure.”