Sunday 19 August 2018

Ryanair outlook on 'pessimistic side of cautious' as profits hit €1.45bn

Ryanair boss Michael O’Leary
Ryanair boss Michael O’Leary
Ellie Donnelly

Ellie Donnelly

Ryanair’s outlook for financial year 2019 is "on the pessimistic side of cautious".

This is  despite reporting a  10pc increase in full year profit after tax to €1.45bn in its financial year 2018.

While the airline, which last year saw its traffic grow 9pc to over 130 million passengers, expects passenger numbers to continue to rise in the coming year, Ryanair said that unit costs this year will rise 9pc due to higher staff and oil prices.

The rise in oil prices is expected to add more than €400m to the airline’s fuel bill.

Non-fuel unit costs will rise by up to 6pc at the airline as result of increased staffing costs and business investment, according to the airline’s full year results for 2018.

Revenue at the airline last year increased 8pc to €7.2bn, while the airline’s net margin remained consistent at 20pc.

"We are pleased to report a 10pc increase in profits, with an unchanged net margin of 20pc, despite a 3pc 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 September 2017 rostering management failure," Michael O’Leary, CEO of Ryanair, said.

Last year the airline took delivery of 50 B737 aircraft, bringing the fleet to 430 units, while it created 1,500 new jobs.

The airline is facing further possible industrial relations disruption this year with Irish pilots’ union IALPA having given the airline until this Thursday to agree to new working practices or it will ballot pilots for possible industrial action, including strikes.

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