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Ryanair profits fall on lower fuel costs and higher fares

by LLB Reporter
23rd Jul 18 7:06 am

Ryanair today (23 July) reported a 20% fall in Q1 profits to €319m (excl. exceptionals).  Strong traffic growth (up 7%), overcapacity in Europe, and the earlier timing of Easter led to a 4% decline in ave. fares. Higher fuel and staff costs offset strong ancillary revenue growth in the quarter.

Q1 Results (IFRS) June 30, 2017 June 30, 2018 % Change
Guests (m) 35.0 37.6 +7%
Revenue (m) €1,910 €2,079 +9%
Profit after Tax (m)* €397 €319 -20%
Net Margin 21% 15% -6%
Basic EPS (euro cent) 32.66 26.62 -18%

      * Excl. exceptional: 24.9% (€9m) share of Associate LaudaMotion Q1 loss.

Ryanair’s Michael O’Leary said: “As previously guided, Q1 PAT fell by 20% to €319m due to lower fares, the absence of half of Easter in the quarter, higher oil prices and pilot costs.  Traffic grew 7% to 37.6m, despite over 2,500 flight cancellations caused by ATC staff shortages and ATC strikes. Ryanair’s lower fares delivered an industry leading 96% load factor.”

Q1 highlights include:

  • Traffic grew 7% to 37.6m (LF 96%)
  • Ave. fare fell 4% to €38.68
  • Ancillary revenue rose 25%
  • Ryanair Sun launched its summer charter programme in Poland
  • €265m returned to shareholders via buybacks

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