Ryanair has reported a fall in profits for the first half of this financial year following a drop in ticket prices.
The carrier recorded a net profit of €1.79 billion (£1.5bn), 18% lower than its previous half-year profit of €2.18bn. Traffic was up 9% to 115m customers, but air fares declined 7% in the second quarter, with average ticket prices falling 10% over the summer.
Ryanair Group CEO Michael O’Leary said higher interest rates and ‘consumer spending pressure’ were key factors.
Michael remained upbeat, saying: “Many customers are switching to Ryanair for our lower air fares. As a result, we are capturing record share gains across most markets.”
The financial update comes as Ryanair threatened to cut capacity to and from UK airports by up to 10% next year in response to the £2 per passenger increase in APD announced in the Budget last week.
Ryanair said it could mean reduced air travel to and from the UK by up to 5m passengers, adding: “If the new Labour Govt are serious about their claims to deliver ‘growth’ then they should start by scrapping APD and lowering air access costs to the UK which will stimulate tourism, giving rise to rapid growth in visitor numbers, regional tourism and jobs.”
See also: Labour’s first Budget will ‘make life more difficult for travel’
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The carrier recorded a net profit of €1.79 billion (£1.5bn), 18% lower than its previous half-year profit of €2.18bn. Traffic was up 9% to 115m customers, but air fares declined 7% in the second quarter, with average ticket prices falling 10% over the summer.
Ryanair Group CEO Michael O’Leary said higher interest rates and ‘consumer spending pressure’ were key factors.
Michael remained upbeat, saying: “Many customers are switching to Ryanair for our lower air fares. As a result, we are capturing record share gains across most markets.”
The financial update comes as Ryanair threatened to cut capacity to and from UK airports by up to 10% next year in response to the £2 per passenger increase in APD announced in the Budget last week.
Ryanair said it could mean reduced air travel to and from the UK by up to 5m passengers, adding: “If the new Labour Govt are serious about their claims to deliver ‘growth’ then they should start by scrapping APD and lowering air access costs to the UK which will stimulate tourism, giving rise to rapid growth in visitor numbers, regional tourism and jobs.”
See also: Labour’s first Budget will ‘make life more difficult for travel’
The post Ryanair reports fall in profits appeared first on Travel Gossip.
Continue reading...
