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|
|Profit after Tax (m)*||€397||€319||-20%|
|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