Tag Archives: Ryanair

Ryanair reports a flat first half profit of €1.15 billion, gives an update on the MAX

Ryanair Holdings plc today (November 4) reported an unchanged first half (H1) net profit of €1.15 billion and pointed to the following highlights.

  • Traffic grew 11% to 86m guests.
  • Revenue per guest rose 1% (5% lower fares; ancillary rev. up 16%)
  • 90% of flights arrived on-time (excl. ATC delays)
  • 5 new bases opened (Bordeaux, Marseille, Toulouse, Southend & Berlin)
  • Georgia & Armenia become the 39th & 40th countries in Ryanair’s network
  • New Environmental Policy launched
  • €250m returned to shareholders under €700m buyback programme.

 

H1 (IFRS) – Group Sep. 30 2018 Sep. 30 2019 Change
Guests 76.6m 85.7m +11%
Load Factor 96% 96%
Revenue €4.84bn €5.39bn +11%
PAT €1.15bn €1.15bn
Basic EPS €0.9974 €1.0247 +3%

EUROPE’S GREENEST, CLEANEST AIRLINE:

The welfare of our planet is of vital importance to our customers and our people. Ryanair has the lowest carbon emissions of any major EU airline at just 66 grams of CO₂ per passenger km. Passengers switching to Ryanair can halve their CO₂ emissions compared to some other major EU carriers. Ryanair operates the youngest fleet, the highest load factors, and newest most fuel-efficient engines. Ryanair will, over the next decade, cut carbon emissions by 10% and noise emissions by 40%.

Ryanair launched its new Environmental Policy at its Sept. AGM, committing to;

  • Be plastic free in 5 years;
  • Cut noise emissions by up to 40% per seat;
  • Cut CO₂ emissions by a further 10% by 2030 (up to 50% less than other major EU airlines);
  • Encourage guests to use our voluntary carbon offset programme;
  • Work with environmental partners to improve our environment in Europe.

While aviation is responsible for just 2% of Europe’s carbon, our industry must work to further cut this very low level of emissions. EU airlines already pay substantial environmental taxes – Ryanair will pay over €630m in such taxes this year.  

BUSINESS REVIEW:

Revenues

Revenue grew 11% to €5.39bn.  Scheduled Sales rose 5% to €3.74bn as we carried 86m guests at 5% lower air fares due to the weak consumer demand in the UK and overcapacity in Germany and Austria. Ancillary Revenue jumped 28% to €1.65bn as more guests chose Priority Boarding and Preferred Seat services. In Oct., Ryanair Labs launched a new digital platform with improved, personalised, guest offers. 

Costs

Our fuel bill rose 22% (+€289m) to €1.59bn due to higher prices and 11% traffic growth. Ex-fuel unit costs rose 2%, primarily due to higher staff costs, increased pilot pay and higher than expected crew ratios (as pilot resignations slowed to almost zero), higher maintenance (as older aircraft remain in the fleet due to the Boeing MAX delivery delays), and the consolidation of Lauda costs. This was partially offset by improved punctuality and lower EU261 costs. Our fuel is 90% hedged for FY20 at a rate of $71bbl.  Currently 63% of our FY21 fuel is hedged at $61bbl. We continue to negotiate attractive growth deals as airports compete to win Ryanair’s traffic growth. Sadly, due to the MAX delivery delays, we will be forced to cut or close a number of loss making bases this winter leading to pilot and cabin crew job losses. We continue to work with our people and their unions to finalise this process.

Group Airlines

The Group airlines continue to develop strongly. Buzz flew 24 B737s in S.19 from its 6 Polish bases, and is developing growth opportunities in other Central EU countries. 7 aircraft are dedicated to charter operations with the remaining 17 operating scheduled flying for Ryanair.

Lauda’s pricing environment remains difficult in its key Austrian and German markets and Lauda’s revenue per guest remains behind target. They are working hard to grow ancillary services, lower costs and increase efficiencies. This summer Lauda operated 80 routes across its 4 bases.  With A320 aircraft and pilots recently released from the failure of Thomas Cook and Adria Airways, Lauda plans to grow from a fleet of 23 A320s in S.19 to 38 for S.20. While still loss making in FY20, we expect this very strong traffic growth, cost reduction and improved ancillary spend will push it towards breakeven in FY21.

Malta Air became the 4th airline in the Ryanair Group in June. Over the next 3 years Malta Air will grow our Maltese base from 6 to 10 based aircraft. It will also, over the coming year, operate most of the Group’s French, German and Italian bases.

During H1 Ryanair DAC opened 5 new bases (Bordeaux, Marseille, Toulouse, Southend & Berlin) and launched 241 new routes, including new country markets in Ukraine, Turkey and Lebanon. Ryanair will operate to Georgia and Armenia in S.20. Eddie Wilson was appointed CEO of Ryanair DAC in Sept., reporting directly to the Group CEO.

Copyright Photo: Joe G. Walker.

Boeing MAX update

Delivery of the Group’s first Boeing 737-MAX-200 aircraft has been repeatedly delayed from Q2 2019. We now expect our first MAX aircraft to be delivered in March/April 2020 at the earliest (subject to EASA approval).  The risk of further delay is rising. We expect to receive only 20 MAX-200s (previously 58) in time for S.20 which has cut our S.20 growth rate from 7% to 3% (162m to 157m guests in FY21). We remain confident that these “gamechanger” aircraft (which have 4% more seats, but burn 16% less fuel) when delivered will transform our cost base and our business for the next decade. Due to these delivery delays, we will not see any of these expected cost savings delivered until FY21.

Balance Sheet & Shareholder Returns

Ryanair’s BBB+ rated balance sheet remains one of the strongest in the industry and 70% of our aircraft fleet is debt free. This allows us to grow while weaker airlines collapse, sell or retrench in the current, difficult, market conditions. We have, to date, returned over €250m to shareholders under our €700m 2019 share buyback programme. With €450m still unspent, we retain the flexibility to repurchase more shares from UK holders in any hard Brexit scenario. Despite the share buyback and the impact of IFRS16 (€227m), net debt was just €460m at period end.

Outlook

Our outlook for the remainder of the year remains cautious. We try to avoid the unreliable optimism of some competitors. Full year traffic will grow 8% to 153m but we expect a slightly better fare environment than last winter (although we have limited H2 visibility). This however remains sensitive to any market uncertainty such as a ‘no deal’ Brexit. We expect ancillary revenues will grow ahead of traffic growth, supporting full-year revenue per guest growth of 2% to 3%. The full year fuel bill will rise by €450m and ex-fuel unit costs will increase by 2%. While Lauda’s losses will be higher than originally expected, due to overcapacity in Austria and Germany, traffic will be higher as we take advantage of the availability of low cost A320 leases. We are therefore narrowing our full year guidance to a new range of €800m to €900m PAT.  This guidance is heavily dependent on close in H2 fares, Brexit and the absence of any security events.

Ryanair aircraft photo gallery:

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Ryanair to fly to Armenia

Cascade. Yerevan

Ryanair has announced its first ever flights to and from Armenia, the 40th country in the Ryanair network, with two new routes from Yerevan to Milan Bergamo and Rome Ciampino starting in January 2020, and two new routes from Yerevan to Berlin Schönefeld and Gyumri to Memmingen starting in Summer 2020.

Photo: Ryanair.

Ryanair launches its 2020 UK Summer Schedule

Ryanair launched its UK Summer 2020 schedule with 14 new routes including exciting destinations for Summer such as Cluj (Romania), Pisa and Terceira (Portugal), and more than 500 routes in total.

Ryanair’s UK Summer 2020 schedule will deliver:

  • 5 brand new routes –  Edinburgh to Bydgoszcz (twice-weekly); Manchester to Pisa (twice-weekly); Stansted to Cluj (three flights a week), Kosice (three flights a week) and Terceira (weekly);
  • 9 new summer services – Exeter to Alicante (twice-weekly); Edinburgh to Bucharest (three flights a week); London Stansted to Dresden (three flights a week) and Essaouira (twice-weekly);  London Luton to Krakow (4 flights a week) and Seville (three flights a week); Manchester to Katowice (three flights a week), Milan Malpensa (5 flights a week) and Prague (9 flights a week)
  • More flights on 46 other routes including destinations like Budapest, Milan Bergamo and Krakow.

Photo: Ryanair.

Ryanair to open a new Toulouse base for its Summer 2020 Schedule

Ryanair has made this announcement:

Ryanair has announced the opening of its new Toulouse base (its third in France) and the launch of its new summer 2020 schedule, with two based aircraft and 23 routes (13 new), connecting Toulouse to Athens, Brest, Budapest, Dublin, Lille, Luxembourg, Marseille, Oujda, Palermo, Palma, Porto, Tangier and Valencia.

Ryanair’s new Toulouse base will deliver:

  • 2 based aircraft
  • 23 routes in total
  • 13 new routes to/from Athens (2), Brest (3), Budapest (2), Dublin (daily), Lille (daily), Luxembourg (3), Marseille (5), Oujda (2), Palermo (2), Palma (2), Porto (3), Tangier (2) and Valencia (2
  • More frequencies on two other routes to/from Fez (3) and Seville (4)

Ryanair aircraft photo gallery:

Ryanair announces new routes from Bucharest and Vilnius to London Southend, will fly to Georgia

Ryanair has announced two new Southend routes to Bucharest and Vilnius, commencing in November 2019. The new route to Bucharest will operate with a five times weekly service, while the new Vilnius route will operate three times weekly.

In other news, the airline also announced its first ever flights from Georgia, the 39th country in the Ryanair network, with a new route from Tbilisi to Milan Bergamo and two new routes from Kutaisi to Bologna and Marseille, which start in November as part of Ryanair’s Winter 2019 schedule. Ryanair will also connect Tbilisi to Cologne in April as part of Ryanair’s Summer 2020 schedule.

Ryanair Irish pilots withdraw from mediation, will strike for 48 hours on August 22-23

Ryanair made this announcement:

Ryanair pilots and their union Fórsa on August 14 withdrew from Mediation talks chaired by Mr Kieran Mulvey when no progress was made on their unrealistic and unimplementable pay proposals.

At yesterday’s mediation, the Ryanair Pilots Committee and Fórsa confirmed that they are seeking pay increases of 101% on top of current annual pay of over €172,000. Ryanair Pilots are insisting on these pay demands being met, just one day after Norwegian announced the closure of its Dublin operations with the loss of over 120 crew jobs, despite the fact that Ryanair has a surplus of over 500 pilots due to the delayed delivery of over 30 MAX aircraft this winter, and just 10 weeks before a “no-deal” Brexit could cause further disruption to air travel and airline jobs in Ireland and the UK.

Ryanair has called on its pilots and the Fórsa union to return to Independent Mediation with reasonable proposals which reflect the falling airfares and profits Ryanair has recently reported, as well as the fact that Ryanair pilot pay is already 20% ahead of comparable 737 airline pilot pay in Norwegian and Jet2.

Speaking yesterday evening, Ryanair’s Chief People Officer Eddie Wilson said:

“We have done everything in our power to avoid disruption to our flights and our customers’ holidays. However, no company can concede to grossly unreasonable demands from its highest paid workers for a further pay increase of over 100% (when they already agreed and received a 20% pay increase earlier this year) at a time when the airline industry is in crisis.

Ryanair pilots who are already among the best paid workers in Ireland are now threatening to disrupt the holiday travel plans of thousands of customers over the coming weeks as they demand that their pay be increased from €172,000 p.a. to over €347,000 p.a. that would see them earn more than the President of Ireland or our Taoiseach, even as Norwegian makes all of its Dublin pilots redundant. We remain willing to engage in Mediation with our pilots and Fórsa but call on them to avoid disrupting our customers’ travel plans in pursuit of what are clearly unrealistic and unimplementable pay proposals.”

 

Meanwhile Forsa issued this statement:

Directly-employed Ryanair pilots based in Ireland are to take strike action for 48 hours from 00.01am on Thursday 22nd August. Their union served strike notice on the company this evening (Wednesday), and said Ryanair pilots would notify the company of further strike days in due course.

The move comes after 94% of directly-employed Ryanair pilots, who are members of the Irish Airline Pilots’ Association (IALPA), voted to back industrial action in a long-running dispute over pay, working conditions and related issues.

The union said that the Irish Airline Pilots’ Association (IALPA) had submitted a 30-page proposal to Ryanair management in March of this year, which sought pay levels and structures it says are in line with sector norms. The IALPA claim also included proposals on pensions, working conditions and related matters.

Yesterday (Tuesday) the union accepted an invitation from mediator Kieran Mulvey to attend talks this afternoon. It said that only a substantive counter-proposal from Ryanair management, which properly addressed all areas of the IALPA claim, was required to convince pilots’ representatives not to take strike action next week. No such counter-proposal was made at the mediation meeting today.

Denying management claims that the company had not received specific proposals, the union said Ryanair had received detailed proposals almost four months ago. But the airline made no significant response, even in the face of a costly and potentially disruptive stoppage.

Fórsa national secretary Angela Kirk said Ryanair pilots told her they’d been forced into industrial action by the company’s failure to offer any significant response to their proposals over a four-month period. She said she regretted any disruption that might flow from management’s unwillingness or inability to negotiate a fair and transparent pay package, even at this late hour.

IALPA is seeking pay levels it believes are common and competitive in the commercial airline sector, from a company that made a substantial profit of €1 billion last year. They tell me they feel forced into serving notice of potentially-disruptive industrial action by a company that seems either unwilling or unable to negotiate in a professional, transparent and constructive manner,” she said.

Some 180 directly-employed Ryanair pilots based in Ireland, who are members of IALPA, were eligible to vote in the strike ballot, the results of which were announced last Friday (9th August). Ryanair pilots who are employed by agencies, or have so-called ‘self-employed’ status, cannot be balloted under Irish employment law.

ECA: Ryanair on a confrontation course, again

The European Cockpit Association (ECA) has issued this statement:

This will be the second summer of industrial unrest in a row for Ryanair and the underlying root causes seem similar, and familiar to those of last year: Ryanair’s inability to undertake genuine social dialogue with its employees.

“One year was sufficient for Ryanair to acquire and develop two new airlines – Malta Air and Ryanair Sun in Poland – and to buy a 3rd one – Laudamotion in Austria,” says ECA Secretary General Philip von Schöppenthau. “But in all this time Ryanair has failed to negotiate long hoped-for Collective Labour Agreements (CLA) with its crew in several major countries. Improving relations with its employees clearly seems to have shifted to a lower place on the priority list.”

In the current highly sensitive context of social unrest, Ryanair seems to have opted again for its favorite approach: confrontation. The company issued warnings of job cuts, but few in the industry are convinced by the justification provided by the airline. The continually varying threats are reminiscent of last year’s, made after 100 Irish pilots walked out. However, with a future flying program larger than this year’s, even with the delayed arrival of ‘growth’ 737 MAX aircraft, and management continuing to recruit pilots, it is difficult to see these ever-changing warnings of a pilot surplus as genuine.

pilot ryanair strike

Dublin, July 2018

Ryanair announced cuts to 20% of its Dublin-based fleet this winter and possibly the dismissal of 100 pilots and 200 cabin crew in the weeks to come. This decision comes in the immediate aftermath of a series of one-day strikes by Irish based pilots and further industrial action across Europe.

“The Recognition Agreements with unions and the partial deals (e.g. on seniority) that Ryanair reached last summer were enough to buy the airline some time, but it has not been used to secure lasting industrial peace and a sustainable future for the airline. The ill-disguised threats to crew over the past weeks, regretfully, are yet another show of disregard for its employees and social dialogue. Has management really learnt nothing at all – or is it simply resistant to genuine change?”, asks Philip von Schöppenthau, ECA Secretary General.

“With the outlines of future opportunities for union busting and social dumping already visible in Malta Air and Ryanair Sun, it is not surprising pilots are standing up to ensure their agreements, labour rights, and previous pledges from the airline will be respected,” says ECA President Jon Horne.

ECA is the representative body of over 40,000 pilots from across Europe, striving for the highest levels of aviation safety and fostering social rights and quality employment for pilots in Europe.