Ryanair Lost 20 Million Euros
Europe’s biggest low-cost airline recently announced that ticket prices had dropped more than expected in recent months, as the offer was too big. Lower ticket prices resulted in Ryanair losing 20 million euros in the third quarter.
Last year, the six largest low-cost airlines in Europe, Ryanair, Easyjet, Eurowings, Norwegian, Wizz and Transavia Airlines, carried 352.6 million passengers, according to the Handelsblatt. That’s 10.4 percent more than the year before.
This growth has now taken its toll, the trend of falling ticket prices is likely to continue, Ryanair boss Michael O’Leary had predicted. Ryanair management also expressed skepticism about how the business continued to progress: “We do not share the recent optimistic outlook of some of our competitors that summer airfares will rise in 2019.”
It was not until mid-January that Ryanair lowered its targets for the 2018/19 fiscal year for the second time. In contrast to its competitors, the airline will still earn a lot of money: between 1.0 and 1.1 billion euros, it should now be 2018/2019 in the current financial year, it is said in Dublin. Ryanair had lowered its earnings forecast to 1.1-1.2 billion euros only in October because of the strikes and the expensive kerosene.
Although the Irish airline came under heavy pressure last year, the company’s austerity had forced management to abandon its opposition to trade unions. For a year, management has been talking with employee representatives about working conditions. Salary increases and better employee conditions, however, increase costs.
The constant strikes damage the image of the airline at the same time. Ryanair assumes, however, that there will be no further failures of European airlines and therefore in 2019 to continue to expect excess capacity on the short-haul.