Saturday 22 October 2016

Ryanair fares and baggage costs to fall as profits soar 43pc

Published 23/05/2016 | 07:27

Ryanair CEO Michael O'Leary. Photo: AFP/Getty Images
Ryanair CEO Michael O'Leary. Photo: AFP/Getty Images

Baggage fees and fares at Irish airline Ryanair are set to fall in the coming year after profits at the firm soared in 2015.

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Speaking on RTE's Morning Ireland, Ryanair chief commercial officer David O'Brien said the company is looking to pass on more cost benefits to customers in 2016.

"The good news is that into the coming year, fares will fall again by 7pc we expect.

"You can expect reduced bag fees and a more personalised offering over the coming year," Mr O'Brien said.

Profits at Ryanair increased by 43pc last year to €1.24bn despite terrorist attacks hitting the firm's fourth quarter yields.

The number of customers that flew Ryanair last year jumped 18pc to 106.4 million while revenue also grew by 16pc to €6.54bn.

Ryanair said it experienced over 500 flight cancellations following the Brussels attacks and a number of ATC strikes.

The airline also said that ATC strikes in recent weeks has caused over 200 flight cancellations. Ryanair has called on the European Commission to stop the "unjustified" strikes.

Ryanair chief executive Michael O'Leary was pleased by the company's full year performance in 2015.

“FY16 was a year in which we delivered significant traffic and profit growth in all 4 quarters (despite an average oil price of $90bbl as a consequence of hedges put in place in 2014) as our Always Getting Better (AGB) service programme is attracting millions of new customers to our lowest fare/lowest cost model."

Net margin increased by four basis points to 19pc with basic earnings per share increasing 48pc to 93c.

Average fare stood at €46 per unit with unit costs dipping 6pc.

Ryanair also iterated its desire for Britain to stay within the EU.

"One of Europe’s great success stories was airline deregulation in the late 1980s which allowed Ryanair to break up the high fare cartel of Europe’s flag carrier airlines, and has enabled us to transform air travel, tourism, economic growth and jobs all over Europe. Ryanair is actively campaigning for a “Remain” vote in the referendum on June 23 next.

"If the UK leaves the EU then this, we believe, will damage economic growth and consumer confidence in the UK for the next 2 to 3 years as they begin to negotiate their exit from the EU and re-entry to the single market in very uncertain market conditions," the airline said in a statement.

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