Ryanair turns a corner as cheap fuel boosts profits and outlook
Low-cost carrier Ryanair has reversed its losses to post a third quarter profit of €49m whilst simultaneously raising its full-year net profit guidance to €840m-€850m.
Ryanair has been buoyed by falling oil prices as it celebrated its 30th anniversary with traffic increasing by 14 per cent to 21 million passengers despite a two per cent rise in average fares.
The airline has been battling to improve its customer experience of late with its ‘Always Getting Better’ programme which aims to reverse negative sentiments toward the brand. This has seen it overhaul its mobile and digital interface and the launch of new services.
Ryanair chief executive Michael O’Leary said: “As 2015 will be Ryanair’s 30th year of bringing low fares to Europe, we are pleased to report a Q3 profit of €49m. These strong results confirm that our “Always Getting Better” customer programme and our expanded business schedules, coupled with our substantial fare and cost advantage over competitor airlines is drawing millions of new customers to Ryanair.”
Looking further ahead Ryanair has a more ‘cautionary outlook’ for 2016, anticipating only modest growth in profits as its fuel costs are hedged at $92 – above the current market rate, with any profits passed on to travellers in the form of lower fares.