Saturday , July 2 2022

Ryanair: 29% annual fall in profits – to 1 billion euros


The airline Ryanair cheap flights publishing annual profits from 1.02 billion euros (excluding Laudamotion), down 29%. Strong traffic growth (+ 7%) to 139 million passengers was offset by a 6% reduction in prices, and the increase in supporting revenue from higher fuel, personnel and EU261 Allowances was offset. she is care about the future, mainly due to uncertainty surrounding Brexit and oil prices.

The Irish aviation expert was presented on the annual results of May 20, 2019 (excluding Austrian subsidiary Laudamotion) which was marked by a 6% increase in turnoveri 7.56 billion euross. The increase in passenger traffic came with the increase in the passenger load factor around it Boeing 737-800, earning 1 percentage point i 96% (Including Laudamotion, the traffic reaches 142 million customers, the low cost in Vienna recorded an exceptional operational loss of € 139,500,000). No surprise, according to CEO Michael 'Leary, who says " Short haul capacity growth and the absence of Easter in Q4 resulted in a 6% reduction in rates, which promoted traffic growth of 7%. Supplementary sales increased by 19% to 2.4 billion euros, resulting in a total revenue growth of 6% to 7.6 billion euros. Highlights of the 2018/2019 financial year include:

– The average rate fell from 6% to just 37 €

– Traffic increased by 9% to 142m (including Lauda) t

– Subsidiary sales increased by 19% to 2.4 billion euros

– At the end of March 2019, the fleet had 455 of Boeing 737s and 19 Airbus A320s

– 406 new routes and 9 new centers were launched

– Ryanair Sun (Buzz) is profitable in his first year

– The purchase of Lauda was purchased in December with an exceptional loss of 139 M € on the first year

– British AOC license received in December

– Agreements with unions in most major markets

– Over 560 million euros returned to shareholders through repayments


Revenue increased by 6% to € 7.6 billion due to a 7% increase in traffic and an annual average of 6% to € 37, while Ryanair Labs continued to stimulate supporting turnover growth, with expenditure increasing by 11% per passenger for more than t € 17 ". Hosting and seating services have increased dramatically. Ryanair Labs continues to improve its digital platform (website, third party application plugins).


Ryanair "has the lowest unit costs of any EU airline", and the cost gap with competitors in the EU continues to expand. Last year has been a year invest in our people, our support systems and activity », Although the low cost will reach 200 million guests a year by 2024. Unit costs other than fuel have increased by 5% (better than the previously predicted 6%) because Additional salary costs of € 200 million (including a 20% increase in pilot salaries) and € 50 million additional costs for them benefits under EU261 Directive because of the numerous disturbances over the past year. " Although the weakest European airlines are sold or go bankrupt, airports are competing to attract Ryanair's high efficient and efficient load factor growth; its airport charges are 35% lower than those of our nearest competitor In the financial year 19, the fuel bill an increase of 440 million euros; Ryanair is “hedgehog” at 90% for the financial year 2020 at $ 709 per tonne, and at 35% for the first quarter of the financial year 2021 at $ 654.

Other companies in Ryanair group: t

In 2018, the low cost of Ireland was launched in Poland Ryanair Sun (now known as the Ryanair Sun Buzzwith five 737-800, offering charter tours to Poland. Buzz has taken over Ryanair's regular lines in Poland and will operate a fleet of 25 aircraft during the financial year 2020 (including seven for charter flights). The Buzz management team managed to generate a modest profit in its first year of operation.

In December 2018, LaudaMotion (under AOC Austria) has become a wholly owned subsidiary of Ryanair Group. 3 million customers were strengthened in its first year of operation through March 2019, but we recorded initial losses exceptional amounts of € 139.5 million, " mainly due to the publication of its very late flight schedules and undetected fuel site "Lauda begins its second year with a larger (cheaper) fleet of 23 A320 and a target of just over 6 million passengers a year. It has signed agreements to bring this fleet to 35 A320 for 2020 and, by the third year (FY21), we expect Lauda to have more than 8 million passengers a year and be commercially profitable. ".

The rise in oil prices and lower prices has led to a series of failures in European airlines, recalls Ryanair, including Primera (United Kingdom and Spain), Small Planet, Azur and Germania (Germany), Sky Works (Switzerland), VLM (Belgium), Cobalt (Cyprus), Cello and Flybmi (UK) and WOW (Iceland). Flybe (UK) was sold, while the airlines Alitalia and Thomas Cook are currently on sale.

Ryanair has closed unprofitable centers in Bremen and Eindhoven and reduced the number of aircraft at Weeze, Hahn and the Canary Islands, "imitating" according to his Norwegian statement (many of them competing with Ryanair, including Rome, Las Palmas, Palma, Tenerife, Edinburgh and Belfast, its center in Dublin is reduced from 6 to 1 in October); Wizz Air (Poznan), Lufthansa (Düsseldorf) and easyJet (Porto) have also announced reductions and / or closures in recent months. Ryanair predicts consolidation failures and further airlines in winter 2019 and again in 2020, "due to over-capacity, lower prices and higher oil prices, particularly among airlines who have not included them or are unable to cover them. T themselves.


Ryanair deferred his first five aircraft 737 MAX 200 during winter 2019 (subject to EASA's regulatory approval), while declaring: t we continue to have the greatest confidence in these aircraft Will have 4% more seats, a fuel economy 16% and 40% less noise emissions. " They will be scaled at an average euro / dollar rate of 1.24 in 2024, and will deliver significant unit cost savings for the next five years, although the delay in introducing 2019 means that we will see no significant cost benefit before t 2021 ".

Balance sheet and fleet

The group's balance sheet, which has a BBB + score, is " one of the strongest in the industry "Nearly 95% of the fleet of 455 aircraft is owned, and more than 63% without debt. At the end of the year, the group had 3.2 billion euros of gross cash. Ryanair generated almost € 2 billion net cash in financial year 19, but spent more than € 1.5 billion on capital expenditure (mainly aircraft, simulators, machinery and hangers), € 560 million was reported to shareholders on share repayments and over € 400 million of debt was repaid. As a result, net debt at the end of the year " slightly higher To arrive 450 million euros. " We recently completed an unsecured bank facility (5 years) for € 750 million. This facility, along with a strong cash flow of operations, will fund the largest investments of € 2 billion from the latest year to maturity secured and maturing. other general objectives of the company. We are also in advanced negotiations to sell 10 of our oldest 737s for more than $ 170 million by the end of March 2020 ".

Shareholder classes

Council approved a share recovery 700 million euros, which will start later this week and will take 9 to 12 months. The amount is split around 500m € for ADR shares and 200 M for ordinary shares, "although the Board has discretion to review this distribution". This latest acquisition will bring nearly 7 billion euros of money back to shareholders since 2008.

Guidance for the financial year 2010

" Although we introduced Lauda's start-up loss for BA 1 in exceptional circumstances in FY19, their results for MY 2010 will not be allocated to Ryanair Group's income statement. Therefore the outlook for the financial year 20 relates to the Ryanair consolidated group "The forecast for the financial year 2020 continues." caution in terms of prices. Traffic will increase by 8% to 153m. Assuming a 3% per capita income growth, Ryanair anticipates general fixed profits This will be € 750 million if the RPP increases by 2% and up to € 950 million if the RPP increases by 4%. Although orders for the first semester are slightly higher than last year, the prices are lower and the low cost forecasts that this trend will continue until summer 2019; it does not have "visibility" for the second half of the year. The costs will increase as our fuel bill for the whole year increases by 460 million euros. Non-fuel unit costs will only increase by 2%, mainly due to the appreciation of the pound sterling, Lauda's failure to compare the previous year's costs for most of the first half, and Delay in delivery. 737 MAX this year. These forecasts largely depend on the busy summer prices, prices in the second half of the year, lack of security and the lack of a negative Brexit trend, Ryanair is ending.

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