Ryanair's customer refocus delivers 1Q load factor and 25% profit rises; Germany the next big target

Ryanair has continued its impressive growth with a 25% increase in net profit and a 15% increase in passenger numbers in 1Q of its FY2016. This is more evidence of the success of its 'Always Getting Better' customer service initiatives. Profit growth was helped by lower fuel prices, although the benefit was limited by fuel hedging at last year's higher prices driven in part by another jump in load factor. More significantly, a jump in load factor more than offset lower average fares to drive up revenue per seat.

With 35 aircraft deliveries in FY2016 and 50 in FY2017, Ryanair continues to add to its network. The coming winter will see it open bases in Berlin Schoenefeld and Gothenburg. It is also in talks with many other airports across Europe that are interested in the traffic growth that Ryanair can bring. The strength of its network is such that it can happily continue to serve former bases by serving them from other airports, as demonstrated by its recent decision to close its Copenhagen base.