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Ryanair Profits on Track Despite Falling Fare
Ryanair Profits on Track Despite Falling Fare
  1. People
  2. Travel

Ryanair Profits on Track Despite Falling Fare

  1. People
  2. Travel

Ryanair Profits on Track Despite Falling Fare

Ryanair's average fares fell more than expected in the last three months of 2016 amid a capacity glut in Europe's short-haul aviation market, but the low-cost giant said it remains on track to post a modest increase in annual profits.
"While competition may ease in the coming year, the market will continue to be challenging, with average fares likely to post single-digit percentage falls," Chief Executive Michael O'Leary said.
Europe's short-haul carriers have struggled in recent months with overcapacity and Britain's vote to leave the European Union, with low-cost rivals Wizz and easyJet both trimming their annual profit forecasts in recent weeks, Reuters reported.
Ryanair, Europe's largest airline by passenger numbers, said average fares fell 17% in the three months to Dec. 31 and could fall up to 15% in three months to March 31. 
That is worse than its earlier forecast of a fall of between 13 and 15% over the six-month period.
Weak fares knocked its profit in the final three months of 2016, the third quarter of its financial year, by 8% year-on-year to €95 million ($102.2 million), compared to a forecast of €99 million in a company poll of analysts.
But it said it remained confident of meeting its profit guidance for its financial year to March 31 of €1.3 billion to €1.35 billion, which would imply an increase of around 7% year-on-year.

 

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