Ryanair CEO 'comfortable' with net profit outlook
Ryanair CEO Michael O'Leary stated he is “comfortable” with the carrier’s net profit outlook for FY2011, with the carrier forecasting a 10-15% rise in profits for the year, to EUR350-375 million (Dow Jones, 22-Sep-2010). The CEO stated it was too early to revise the guidance before its next quarterly results in Nov-2010. The carrier also still expects passenger numbers to rise 11%, to 73.5 million for FY2011, including 1.5 million cancellations due to the ash cloud in Apr-2010.
- New CEO: Mr O’Leary said plans to find a new CEO for the carrier will become more of an issue in 2012-13 when growth slows;
- Ancillary charges: the CEO commented that he is still interested in charging for onboard toilets;
- Government taxes: he also voiced his concern over the German Government’s plans to introduce a EUR8 passenger tax from 01-Jan-2011, stating it will result in a decline in traffic in the country;
- Trans-Atlantic operations: the carrier does not plan to launch trans-Atlantic operations in the short term, unless it can cheaply acquire long-haul aircraft.