Ryanair reports fall in half year profits due to fuel costs and compensation payouts
PUBLISHED: 09:10 22 October 2018 | UPDATED: 09:10 22 October 2018
Ryanair has reported a dip in half year profits after the airline was stung by higher fuel costs and compensation payouts linked to flight delays and cancellations.
The budget carrier booked a 9% decline in pre-tax profits to 1.3bn euros (£1.1bn) in the six months to September 30.
Ryanair, which was forced to issue a profit warning earlier this month, said higher fuel and staff and compensation costs offset strong revenue growth, which rose 8% to 4.79bn euros (£4.2bn).
The airline added that average fares declined 3% due to excess capacity in Europe, an earlier Easter in the first quarter, and repeated strikes and staff shortages which caused a spike in cancellations of higher fare, weekend flights.
Ryanair has also been stung by pilot and cabin crew strikes, knocking passenger numbers and resulting in hefty compensation costs.
It has also hit customer confidence in the company, with passengers making fewer forward bookings into the third quarter including for the October school half-term and Christmas.
That was on top of rising oil prices, which have bumped up Ryanair’s fuel bill by 22% to 1.3bn euros (£1.1bn).