Ryanair sees more growth opportunities than fleet plan can accommodate as profit hits new high
Based on negotiations with 180 airports across Europe, Ryanair sees more growth opportunities for 2018 and 2019 than its existing fleet plan can accommodate. Consequently, it is talking to Boeing about taking additional aircraft over the next two years and is looking to extend 10 of its leased aircraft. It will also establish a new charter airline in Poland. After growing passenger numbers by 13% to 120 million in FY2017, it has a current FY2018 plan for growth to slow to 8%, taking the total to 130 million. This target may now have some upside potential.
In FY2017 Ryanair increased its underlying net profit by 6%, to its highest ever EUR1.3 billion, in spite of a 13% drop in average fares. Its operating margin was again the highest among European airlines. Double digit passenger growth was stimulated by low fares and customer service enhancements resulting from Ryanair's 'Always Getting Better' programme.
Over the three years of the programme Ryanair has added 38 million passengers, 12 ppts of load factor and EUR793 million of net profit (a 152% increase), while cutting its ex fuel cost per passenger by 8%. Ryanair is once again a very profitable, cash generating machine.
Become a CAPA Member to access Analysis Reports
Our Analysis Reports are only available to CAPA Members. CAPA Membership provides exclusive access to in-depth insights on the latest developments in the aviation and travel industry, developed by our team of dedicated analysts located in Europe, North America, Asia and Australia.
Each report offers a fresh perspective on the latest industry trends and is available online or via the CAPA mobile app, with customisable alerts to help you stay informed and identify new business opportunities.
CAPA Membership also provides access to our full suite of tools, including a tailored selection of more than 400 News Briefs every weekday and comprehensive data and analysis on thousands of companies around the world.