O'Leary bullish on prospects
Ryanair profits rise despite cancellations fiasco
Ryanair: apologised for cancellations
Ryanair still expects to make record annual profits this year, despite being forced to cancel 20,000 flights following a scheduling fiasco.
The Irish airline reported profits an 11% rise in half year profits to €1.29bn (£1.14bn) and is forecasting a full-year profit of up to €1.45bn.
Passenger traffic rose 11% to 72.1 million but Ryanair said growth would slow to 4% in the second half of the financial year following the grounding of 25 aircraft.
This would mean traffic of 129 million for the full year, two million fewer than had been expected.
It cancelled flights across the UK, affecting 700,000 passengers, following a problem over pilots’ rosters caused by new aviation rules.
Ryanair has confirmed that pilots pay will rise after seeing an exodus to rival airlines including Norwegian and Jet2.
The company has seen share price fall since the cancellations crisis and has apologised to customers who were affected.
Chief executive Michael O’Leary said: “These results reinforce the robust nature of Ryanair’s low fare, pan-European growth model even during a period which suffered a material failure in our pilot rostering function in early September.”
Ryanair said it had cut fares by 5% in the six-month period and that fares in the second half would fall by 4-6% rather than the 5-7% previously guided.