- Guidance stil on target despite second half uncertainty
- Range of €1.375m to €1.425m
- Full year traffic forecast of 117m
Ryanair raised its full year traffic forecast to 117m customers, with a full year net profit guidance range of €1,375m to €1,425m.’s at this morning’s AGM at the Radisson Blu Hotel, Dublin Airport.
Michael O’Leary had hinted in recent days that the guidance would be lowered. “The jury is still out on the second half of the year. It is still €1,4 but if fares fall by more than 11pc in the second half of the year we will have to revisit guidance.”
He said that while forward bookings for the remainder of the calendar year are about 2pc ahead for September and October, and 1pc higher for November and December, bookings are being made on the back of lower fares.
The airline launched the third year of its so-called “Always Getting Better” programme and detailed:
- Traffic grew by 18pc to 106.4m customers as load factors rose from 88pc to 93pc
- 7 new bases & more than 100 new routes launched
- More primary airports & bases (Hamburg, Luxembourg, Milan Malpensa, Nuremberg)
- First airline to carry over 100m international customers in a calendar year
- First airline to carry over 11m international customers in a calendar month (July)
- Five year pay & conditions deals agreed with all 84 pilot and cabin crew bases
- Over 2,000 new jobs created (bringing total headcount to 11,500)
- Aer Lingus proceeds (€400m) returned to shareholders
- €800m share buy-back programme completed
- Increased profit after tax by 43pc to €1,242m (before an exceptional gain of €317.5m from the sale of 29.8pc shareholding in Aer Lingus)
Michael O’Leary warned that in a worst-case Brexit scenario, English shareholders which currently own about 20pc of the airline could be considered non-EU residents and could be forced to sell their shares. Under EU rules no more than 49.9pc of an EU airline can be owned by investors from outside the Union. Non-EU nationals are currently effectively barred from purchasing ordinary shares in the airline. Previous steps to ensure that the airline doesn’t breach EU ownership rules occured in 2001, when it indefinitely suspended the issuance of new ADR shares in the US and 2002, when it implemented additional measures to restrict the ability of non-EU nationals to purchase its ordinary shares.
After Britain’s exit, Ryanair will likely have to seek a English air operator’s certificate if it wanted to continue operating domestic routes there.
Ryanair Chair, David Bonderman said: “record traffic and load factor growth demonstrates the continued success of Ryanair’s low fares and our “Always Getting Better” customer experience programme. As our recent full year guidance confirmed, Ryanair expects average fares to fall by between 10pc to 12pc in the 6 months to March 2017 (this winter), so there’s never been a better time to book a low fare flight on Ryanair, with even more value for our rapidly growing customer base.”
Ryanair said in a written statement: customers can look forward to further improvements in the coming year including even lower fares, the early launch of the summer 2017 schedule, digital enhancements such as travel extras in the app, ‘one-flick’ payments and automatic check-in, a “My Ryanair Club” with member benefits, and the launch of the Ryanair Rooms accommodation platform, as Always Getting Better continues to deliver for Ryanair’s customers, people and shareholders.
Shareholders approved all resolutions on the agenda which was quite normal for Ryanair, including the re-appointment of the present members of the board of directors.
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