Monday 25 September 2017

Aviation... Ryanair's passenger growth of 30pc

Ryanair aircraft.
Ryanair aircraft.

Ryanair carried just under 6 million passengers last month - a 30pc jump on January 2014.

The airline's load factor, or percentage of seats filled, soared. It stood at 83pc in January compared to 71pc in January 2014.

Ryanair's chief marketing officer, Kenny Jacobs, put the passenger increase down to the airline's 'Always Getting Better' campaign. he said that has helped deliver stronger forward bookings and better than expected load factors.

Ryanair this week said it generated revenue of €1.13bn in the third quarter of its financial year, with net profit soaring to €49m compared to a €35m loss in the third quarter of the previous financial year.

Analysts had expected the airline, headed by chief executive Michael O'Leary, to post a net profit of €30m for the period.

But its shares slid on the back of that earnings announcement, as Mr O'Leary predicted profit growth would be tempered by increased fare competition in coming months, driven by lower oil prices.

"Periods of lower oil prices are generally followed by periods of downward pressure on fares," said Mr O'Leary.

In a note to investors yesterday, analyst Mark Simpson at Goodbody Stockbrokers said he thinks Ryanair could further revise its profit guidance upwards during the summer if capacity discipline among European carriers prevails in coming months.

Ryanair revised its full-year profit outlook upwards five times so far this financial year, which ends next month.

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