Ryanair, Europe’s biggest low fares airline, today announced full year net profit after tax of €522.8m, down 8% from €569.3m last year. Traffic grew 3% to 81.7m passengers. Revenue per passenger was flat, as strong ancillary revenue growth offset a 4% drop in average fares. Excluding fuel, sector length adjusted unit costs fell by 3%. Separately, Reuters reports that Ryanair will commence services to the United States in 2019.
During the year Ryanair changed course to improve its very poor market reputation by removing irritations to customers on hand luggage, improving the online experience and introducing some flexibility on booking rules.
Michael O'Leary, CEO, called the drop in profit "disappointing," but said in a statement that actions taken since September drove traffic growth in the second half and helped to fill planes.
Ryanair said profit should recover this year to €580m to €620m, though visibility for the winter months is poor when it usually incurs losses. Fares are expected to rise 4% in the current year.
Reuters reports that Ryanair plans to offer flights
to the United States by 2019 and will lure long-distance passengers with very
cheap prices, Frankfurter Allgemeine Sonntagszeitung
reported, citing chief executive Michael O'Leary.
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