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Ryanair released the results of the last quarter. Although the financial situation of the Irish carrier is still quite good, its profits have dropped considerably. Costs also increase and the price of the tickets is not supported by the increase in profits. One thing in Ryanair does not change – still carries more and more passengers
Higher wages to lower profits
In the last quarter Ryanair earned net 319 million euros 20 percent less than in the comparable period of 2017, when he earned 397 million euros . A drop in profits occurred with a simultaneous drop in the average ticket price of 4% However, this did not prevent the carrier from increasing its revenues to [2,079 milliards] ] 2.079 billion euros (9 percent).
The number of passengers increased by 7 percent – Ryanair carried the last quarter 37.6 million people And this despite the strikes of the controllers of flight in France, which contributed on the cancellation of 2500 flights. This greatly influenced the costs of providing passenger care – they were about 40 percent. higher compared to the comparable period of 2017
The decline in profits, according to the financial report, corresponds to the increase in fuel prices and the increase in the remuneration of pilots and flight attendants . The carrier admitted to 34 percent. increase in personnel costs compared to the corresponding period of 2017. Indeed, after last year's strikes, the pilots have benefited from significant increases, while boarding wages have slightly increased increases. Yet most of the carrier's employees are employed by outside companies
Ryanair pilots strike
On July 25, another strike began, a two-day strike by Ryanair pilots. The difficulties will affect passengers traveling to Belgium, Portugal and Spain. Several flights from Poland were also canceled. The canceled flights to and from Polish airports are:
- FR9172 Barcelona – Wroc³aw
- FR9173 Wroc³aw – Barcelona
- FR1057 Brussels – Warsaw-Modlin
- FR1058 Warsaw-Modlin – Brussels
- EN 1002 Spain- Alicante – Warsaw – Modlin
- FR 1001 Warsaw-Modlin – Spain-Alicante
- FR1426 Alicante – Gdańsk
- FR1425 Gdañsk – Alicante
- FR2228 Valencia – Cracow
- FR2229 Krakow – Valencia
- FR6728 Brussels – Krakow (applies to flights of 25 and 26 July)
- FR6729 Kraków – Brussels (applies to flights of 25 and 26 July)
In total, not less than 300 flights were canceled. It is worth remembering that every passenger whose flight has been canceled has the right to use the return of money for the ticket. Customers are also entitled to compensation – up to 250 euros for a trip up to 1500 km and up to 400 euros for flights beyond this distance. Ryanair has not complied with the obligation to inform passengers of canceled flights two weeks before the trip – and these are EU regulations.
Another strike on the horizon
The current quarter is not promising for Ryanair ¿that. Pilots and other workers throughout Europe announce strikes that will result in the cancellation of flights.
Employees claim "luxuries", such as employment contracts accurate information on the duration of holidays or employment directly with Ryanair.
The carrier counterattacked, giving the payroll that he pays to his pilots and cabin crew, and believe they are paying them very well. Ryanair crews are well aware of the fact that the carrier has a vast field for treks, as the operating costs (without fuel) for the Ryanair passenger are lower than those of the competition – according to the Irish line, its costs in the last quarter were only 27 euros / passenger, while for example in Wizz Air already 40 euros, and in Norwegian – 84 euros.
On news of the carrier's weaker results, its shares marked Tuesday on the 2% fall price on the London and Dublin stock exchanges. In New York at the opening, the rate decreased by about 1 percent
. Source: investing.com
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