Ryanair reports first profit fall in 5 years and triples marketing spend to €35m
Ryanair has revealed it is to triple its marketing investment to €35m, this despite reporting its first fall in profits in five years.
Net profit fell to €523m euros (£426m) for the year to March, down from €569m euros in the previous year. Ryanair CEO Michael O’Leary said the profit drop, which he called “disappointing”, was mainly due to a decline in fares and higher fuel costs.
Earlier in the year O’Leary announced an overhauled approach to its marketing and customer service, including a new website and initiatives including a free small 2nd carry-on bag, and today revealed that its recent campaigns will continue throughout the year, seeing marketing and advertising spend rising to €35m from €10m last year.
The airline also released its first ever TV ad in 25 years last month.
O'Leary commented: "We will continue to invest in web and digital improvements over the coming year, as we deliver an industry-leading mobile app, tailored for smart phones and tablets, by mid-summer, and improve our digital marketing and CRM services for the benefit of all our customers."
Despite the losses Ryanair said it expected to boost its passenger numbers by 4 per cent in the coming year to over 84.6 million people, and expects profits to rise by 20 per cent, helped by the summer period.
The carrier is also gearing up to launch a new family product in June which will allow children travelling with family to receive discounts on allocated seats and bags with a business service launching in Autumn.