Ryanair posts its weakest annual profit in four years

 

Ryanair posted its weakest annual profit in four years on Monday and said earnings could fall further next year as Europe’s largest low-cost carrier grapples with overcapacity, Brexit and delays in delivery of the Boeing 737 Max.

The airline posted a profit after tax for its financial year to March 31 – excluding startup losses at its Laudamotion unit – of 1.02 billion euros, down from 1.45 billion euros in the previous year.

But with full-year profits of over € billion, Europe’s biggest budget airline remains in far better shape than many of its rivals.

Ryanair said its fares for six months to the end of September were lower than last year and expected the trend to continue, although it said it had no visibility for the second half of its financial year.

Several rivals in recent weeks have warned of a worse trading environment – partly due to overcapacity and partly because European travelers are holding off booking their summer holidays for fear of how the Brexit process will pan out.

The airline says it has delayed the delivery of its first five Boeing 737 Max aircraft to the winter season, which begins at the end of October.

Ryanair said it continues to have utmost confidence in these aircraft which have four per cent more seats, are 16 per cent more fuel efficient and generate 40 per cent lower noise emissions.

 

Via BBC/ The Independent