The low-cost airline Ryanair has announced that, in this fiscal year, it intends to reduce ticket prices by 7% to increase its market share, amid intensifying competition and the reduction in crude oil prices.
The operator recorded a 43% increase in net profit, up to EUR 1.24 billion, in the fiscal year that ended on March 31, 2016, compared to EUR 867 million in the previous fiscal year. Analysts were expecting a profit of EUR 1.25 billion.
For the fiscal year ending in March 2017, Ryanair estimates a 13% increase in net profit, up to EUR 1.38 – 1.43 billion, below analysts’ estimates of EUR 1.47 billion.
The company estimates a slowdown in earnings growth this year due to terrorist attacks and the reduction in crude oil prices.
Also, the operator estimates that the number of passengers carried in the fiscal year ending in March 2017 will increase by 9%, to 116 million, compared to 101.4 million in the previous fiscal year.
The load factor will remain at 93%.
Source: Economica
Frequently Asked Questions
Why is Ryanair cutting ticket prices?
Ryanair intends to reduce fares by 7% to increase its market share in response to intensifying competition and lower crude oil prices.
What was Ryanair’s financial performance in the 2016 fiscal year?
The airline reported a 43% increase in net profit, reaching EUR 1.24 billion for the year ending March 31, 2016.
How many passengers does Ryanair expect to transport in 2017?
The company estimates it will carry 116 million passengers in the fiscal year ending March 2017, a 9% increase from the previous year.