Record profits for airline
Bitter-sweet annual figures from Ryanair
Ryanair: expects profits to soften
Ryanair has reported record annual profit but said higher costs and static fares will see lower earnings this year.
Europe’s biggest low-cost carrier booked a 10% rise in profit after tax to €1.45bn (£1.3bn) in the year to 31 March.
However, it said it expects a figure of between €1.25bn and €1.35bn for this year, although traffic should grow by 7% to 139 million passengers.
Unit costs are expected to rise by 9% “due to higher staff and oil prices”, but revenue from other sources is “unlikely to grow fast enough to fully offset this and broadly flat fares”.
Chief executive Michael O’Leary said: “Our outlook for FY19 is on the pessimistic side of cautious.
“Forward bookings are strong but pricing remains soft. While still too early to accurately forecast close-in summer bookings or H2 fares, we are cautiously guiding broadly flat average fares for FY19.”