Ryanair plans to end union disputes by Christmas

DUBLIN (Reuters) – Ryanair (RYA.IMonday said he hoped to solve its labor problems by Christmas, signaling the possibility of ending the disruption of flights that led to losses on its shares.

The Irish low-cost carrier, the largest in Europe, also said it may be forced to further reduce capacity this winter due to high oil prices and stiff competition, although these factors helped to solve his difficult professional relationships.

"Given the unfavorable airline environment and the number of job losses reported in recent weeks by pilots and cabin crew, unions are taking a much more sensible and common-sense approach. ", said the general manager, Michael O & # 39; Leary said in a video presentation.

Ryanair's shares rose 3.7% at 07:55 GMT, despite a 7% drop in profits during its key season from April to September due to high fuel costs, excess capacity and damage to bookings caused by a wave of strikes.

That was better than the 9% decline announced by an analyst survey following a warning on October 1st earnings.

Overcapacities are likely to continue to weigh on average fares in winter, except in the event of a major competitor failure, but the failure of several smaller airlines in recent weeks is of concern to staff, O'Leary said.

Ryanair has only to reach an agreement with two big unions, in Belgium and Germany, and "hopes to reach agreements with them on this Christmas side," he added.

The airline, which in the past had threatened to reduce its growth during negotiations with unions, has been struggling with labor relations since it folded under the pressure of recognizing the unions for the first time last December.

Three weeks ago, Ryanair lowered its forecast for the annual profit by 12% and warned that the situation could worsen if a recent wave of strikes by pilots and cabin crew members in Europe continued to affect the traffic. and reservations.

IMPACT ON OIL

Rising oil prices or further tariff cuts could force Ryanair to add to the 1% capacity reduction announced alongside a profit warning on 1 October.

"If oil stays at $ 85 a barrel or more and prices are under pressure, it would probably be wise to look closely at production capacity," said Neil Sorohan, chief financial officer.

Ryanair, which is making the bulk of its profit this summer, has announced a profit of 1.2 billion euros (1.38 billion USD) for the six-month period ended September 30th. She reiterated her profit forecast for the entire fiscal year ranging from 1.1 billion to 1.2 billion euros.

This would be a 17-24% drop from the previous year's record of 1.45 billion euros after tax.

A survey of more than 10 analysts conducted by Ryanair before the results revealed an average forecast of 1.127 billion euros for the year and 1.175 billion for the six months ended September 30.