Ryanair posts record annual profit, pessimistic on year ahead

Europe’s largest low-cost carrier booked a record €1.45 billion profit after tax in its financial year to March 31, up 10 percent year-on-year. (Reuters)
Updated 21 May 2018
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Ryanair posts record annual profit, pessimistic on year ahead

DUBLIN: Ryanair posted a record annual profit on Monday as it brushed off a rostering mess-up that forced it to cancel flights and sparked a dispute with pilots, but warned profits would fall back in the coming year due to higher costs and no fare growth.
Ryanair canceled 20,000 flights in September as an emergency measure to free up enough standby pilots to ensure the smooth operation of its fleet of 400 planes for the remainder of the year.
The cancelations sparked a wave of bad publicity and forced Ryanair to cut its growth plans for the first time in years. It has insisted this is a temporary measure and its long-term growth target remains intact.
Europe’s largest low-cost carrier booked a record €1.45 billion profit after tax in its financial year to March 31, up 10 percent year-on-year and slightly ahead of an average forecast of €1.44 billion in a company poll of analysts.
However, it said it expected to make a profit after tax of between €1.25 billion and €1.35 billion for the coming financial year, lower than the €1.37 billion expected on average by the analysts forecast.
While Ryanair expects to grow traffic by 7 percent to 139 million passengers, up on the 138 million last forecast, unit costs are expected to rise by 9 percent due to higher staff and oil prices with revenue from ancillary products unlikely to grow fast enough to fully offset this and broadly flat fares.
“Our outlook for FY19 is on the pessimistic side of cautious,” Chief Executive Michael O’Leary said in a statement.
“Forward bookings are strong but pricing remains soft. While still too early to accurately forecast close-in summer bookings or H2 fares, we are cautiously guiding broadly flat average fares for FY19,” O’Leary said.
The pessimistic tone was in contrast to rival EasyJet, Europe’s second-biggest low-cost airline, which said last week that it expects profits to rise more than 30 percent this year as it benefits from strong travel demand and the collapse of some smaller rivals.
The Irish carrier averted the threat of widespread Christmas strikes by unilaterally recognizing unions in December for the first time in its 32-year history, but it has struggled to formalize relations in some countries.
It has warned it may face some disruption to flights during the summer months.


Singapore has 1MDB-linked jet, but no Malaysian request for its return

Updated 2 min 25 sec ago
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Singapore has 1MDB-linked jet, but no Malaysian request for its return

SINGAPORE: Singapore police said on Tuesday an aircraft linked to an investigation into a multi-billion scandal at Malaysian state fund 1MDB is parked at the city-state’s Seletar Airport.
Singapore authorities had not previously confirmed that the $35-million private jet, which Malaysian Prime Minister Mahathir Mohamad has said he is seeking to repossess, was in the city.
The aircraft is believed to be owned by fugitive financier Low Taek Jho.
Singapore police said they had not received any formal request from Malaysian authorities for the return of the aircraft.