Business Irish

Monday 23 April 2018

Ryanair flies back into profit

Return to profit: Ryanair. Photo: Bloomberg News
Return to profit: Ryanair. Photo: Bloomberg News

Budget airline Ryanair swung back into profit as traffic grew despite the recession and the firm benefited from lower fuel costs.

The firm made pre-tax profits of €341m for the year to March 31, against a €180.5m loss a year earlier.

Ryanair grew traffic 14pc to 67 million passengers while fuel costs fell 29pc to €894m thanks to lower oil prices.

The firm said it was "proud" of its performance and expected further double-digit growth in traffic and profit this year - barring any more disruption from Iceland's volcanic ash cloud.

Ryanair said "repeated, unnecessary closures" of European airspace had left it with a bill of around €50m so far.

The firm - which lost 1.5 million passengers during the disruption in April and May - also hit out at "unfair and disproportionate" regulations leaving airlines with hefty bills to compensate stranded customers.

Ryanair backed down over initial plans to limit payouts to the cost of ticket prices but warned that passengers "cannot and should not expect to receive unlimited compensation or reimbursements".

The airline said it achieved the results despite a collapsing Irish tourism industry and attacked the Government for its introduction of a €10 tourist tax and cost increases of up to 40pc at Dublin airport.

Passengers will however face higher baggage charges in the peak July and August months before prices drop again in September.

The company's ancillary revenues from sales of non-ticket items such as food and drink rose 11pc to €664m last year and now account for 22pc of overall sales.

Ryanair also had good news for shareholders with a €500m special dividend after talks with Boeing over new aircraft orders ended last December.

Press Association

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