Ryanair, Q1 net income grows up

The Irish airline Ryanair closes its first quarter of fiscal year 2016-2017 with a net profit up 4% to 256 million euro, while the average rate has fallen by 10% to EUR 39.92 and passenger traffic grew by 11% to 31 million.

"The modest profit growth in the first quarter is in line with estimates," the company announced. The result, Ryanair points out, was affected by the absence of Easter in April-June period, the volatility of the market due to terrorist acts and a series of strikes, especially in France, which led to the cancellation of nearly 1,000 flights.
"We feel that the post Brexit generates significant downside risks in the remainder of the year."  Today the chief executive of Ryanair, Michael O'Leary, has pointed out how "the current market volatility" has weakened the last-minute holiday prices.

It will be the winter season to be particularly difficult for European airlines in the wake of the decision to cut prices to stimulate demand for travel. Ryanair, which has confirmed its projection of a decline in winter rates between 10% and 12%, then stressed that "in the event of movements in such numbers is likely to be to the downside." The Irish carrier, to stem the effect of Brexit, has decided to cut the hub capacity to London Stansted without reducing the number of routes. Moreover Ryanair expects that the uncertainty generated by Brexit keep the pound at low levels and the economy depressed in the UK and Europe until at least the end of next year.