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The strikes, the heat wave and even the World Cup all put pressure on air fares, leaving Ryanair in the coming months.
Ryanair charged pbadengers an average fare of € 38.68 for the three months ended June 30th. quarter of the exercise. This figure was 4% lower than the same period in 2017, but was stronger than predicted by the airline.
However, a generally weaker environment and threats of collective action in the Republic of Ireland, Belgium, Portugal and Spain, among other factors, means that Ryanair believes that tariffs in all three month to the end of September will increase by 1 percent, instead of 4 percent, as previously predicted.
The airline is still waiting for profits for the fiscal year, which ends October 31, 2019, from 1.25 billion euros to 1.35 billion euros. However, he says it depends on air fares in the second half of this period, which remains unchanged and warns that he has a "near-zero visibility" on this.
Neil Sorohan, his chief financial officer, said it was difficult to measure the impact of any factor on rates. The heat wave of Northern Europe makes people less inclined to head south and the World Cup also encourages consumers to stay home.
Third Irish strike
Members of the Irish Airline Pilots' strike of the day at the airline on Tuesday. In response, Ryanair will cancel 16 of the Republic's 290 flights, but has announced that it has re-accommodated or reimbursed the 2,500 pbadengers affected.
Cabin crews in three European countries will hit tomorrow and Thursday, resulting in 300 flight cancellations each day. Michael O 'Leary, managing director of Ryanair, said the airline had downplayed the impact of the claims, but said it was waiting for further stops during the week. ;summer.
Ryanair cited a 20 percent pay increase for pilots. overall personnel costs increased by 34% during the quarter, with an increase of 3% for non-flying workers and 9% more flying hours
Oil prices
this year , an invoice that would not be offset by strong ancillary income, according to O. Leary. However, Ryanair sees a potential upside as it could force rivals to close, creating opportunities for the Irish carrier. "At $ 80 a barrel, weaker airlines will go to the wall," said Sorohan.
Despite lower rates and cost pressures, Sorohan said Ryanair continued to generate a lot of money. During the first quarter, it invested 460 million euros, mainly in new aircraft, out of its own resources. The airline has also returned 265 million euros to shareholders and reduced net debt by 24 million euros to 259 million euros.
Sorohan promised that Ryanair would remain focused on debt reduction, but was cautious The current € 750 million equity repurchase program was completed
"We have an extensive program of capital expenditures, but we're going to look at everything after the current redistribution, "he said.
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