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Europe's largest low-cost airline: Brexit and Boeing debacle dampen euphoria at Ryanair

2019-11-04T09:30:42.289Z

TIME ONLINE | News, backgrounds and debates



Dublin (dpa) - The ban on Boeing's medium-haul jet 737 Max and the turmoil around the Brexit continue to keep Europe's largest low-cost airline Ryanair on their toes.

CEO Michael O'Leary fears further uncertainty for consumers in the coming months, because a Brexit remains without agreement in the room. He does not expect Boeing's first max jets before March or April. In addition, the Ryanair subsidiary Lauda is likely due to a ticket price battle in Germany and Austria fly higher losses than initially thought.

In the financial market, however, investors initially concentrated on the current quarterly figures. Shortly after trading in London, the Ryanair share increased by 2.7 percent. The low-cost airline had earned more in the airline-important summer quarter than expected by analysts.

In the months of July to September, sales rose by twelve percent year-on-year to 3.1 billion euros, the company announced in Dublin. Above all, the additional proceeds, which come for example from the reservations of certain seats or from the extra costs that arise when customers prefer to go on board and take a small suitcase into the cabin. However, the profit increased due to significantly increased fuel costs, however, only by eight percent to 910 million euros.

For the current fiscal year to the end of March 2020, O'Leary is aiming for a surplus of 800 to 900 million euros. With a view to the first half of the financial year, however, Ryanair was only able to maintain the profit of 1.15 billion euros at the level of the same period of the previous year. This is indeed more computational than the targeted annual profit. However, in the winter months, airlines are usually in the red.

And winter could have it all this time. "We try to avoid the unrealistic optimism of some of our competitors," said the airline.

Although the management expects an increase in passenger numbers by eight percent to 153 million for the entire financial year. In addition, ticket prices in winter are likely to be slightly higher than a year earlier. However, this depends heavily on developments such as a possible no-deal Brexit. Fuel costs are also expected to rise by € 450 million over the year as a whole and other unit costs per seat are likely to rise by two percent.

Due to the delayed delivery of the Boeing 737 Max jetliner, the airline will probably only have 20 Max aircraft available at the start of the next summer half-year. Originally it should have been 58, last he had counted on 30.

Source: zeit

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