Ryanair reports rise in full-year profit and passenger numbers despite pilots’ leave debacle
- Credit: Press Association
Ryanair has followed the announcement of a solid increase in full-year profits with a warning that rising oil prices could hit its performance over the next 12 months.
The budget carrier saw post-tax profit rise 10% to 1.45 billion euros (£1.26bn) in the year to March 31, while turnover rose 8% to 7.15 billion euros (£6.25bn).
Passenger numbers were also up, jumping 9% to 130.3 million on the back of falling average air fares, which were down 3% to 39.40 euros.
The figures come despite Ryanair being forced to cancel flights after mismanaging pilots' annual leave, in what it called a 'rostering management failure'.
The September debacle, which affected 700,000 passengers, came alongside pilot strike action.
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Ryanair boss Michael O'Leary said: 'We are pleased to report a 10% increase in profits, with an unchanged net margin of 20%, despite a 3% cut in air fares, during a year of overcapacity in Europe, leading to a weaker fare environment, rising fuel prices, and the recovery from our September 2017 rostering management failure.'
However, the chief executive also struck a cautious tone over the airline's prospects for the coming financial year, pointing to higher oil prices and Brexit.
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Ryanair expects unit costs over the next year to rise by 9% following the surge in oil prices, which have risen to 80 dollars per barrel. It will add more than 400 million euros (£349m) to the group's costs.
Staff costs will rise by almost 200 million euros (£174m).
The net result will be a fall in profits to between 1.25 billion euros and 1.35 billion euros, Ryanair said.
On Brexit, the Irish carrier again said it continues to plan for a hard Brexit in March 2019.
In that scenario, UK shareholders will be treated as non-EU and this could 'potentially affect Ryanair's licensing and flight rights'.
As a result, Ryanair intends to 'restrict the voting rights of all non-EU shareholders in the event of a hard Brexit', in order to ensure it is majority-owned and controlled by EU shareholders at all times.
'This would result in non-EU shareholders not being able to vote on shareholder resolutions. In the meantime, we have applied for a UK AOC which we hope to receive before the end of 2018,' the firm added.