Ryanair earns 7% less in the semester due to strikes and rising fuel | Economy

Ryanair earns 7% less in the semester due to strikes and rising fuel | Economy



Ryanair it registered a 7% drop in its profit in its first fiscal semester (from March to September) to 1,200 million euros, due to the rise in the price of fuel, cancellations due to strikes by staff and controllers and the reduction of the average rate. The semi-annual results do not include the impact of the acquisition of the Austrian Laudamotion

The Irish airline assesses that average fares have fallen by 3% due to the fact that there were more cancellations of flights with higher fares, and forecasts that fares will fall another 2% in the second half of the fiscal year.

The low-cost flight company predicts that with fuel reaching $ 85 per barrel, the increase in interest rates and the stronger US dollar, airline margins are falling and "it is inevitable that more of European airlines weaker and uncovered stop operating this winter, "as has happened in recent weeks with Skyworks (Switzerland), VLM (Belgium), Small Planet & Azur Air (Germany), Cobalt (Cyprus) and Primera Air (Sweden).

New cuts

In this process, Ryanair does not rule out further capacity cuts or base closures this winter if oil prices rise or air fares fall further. It also warns of the risks if there is a "hard" Brexit (without agreement) in which UK shareholders will be treated as non-EU. In that case, the shareholders' meeting will restrict the voting rights of all non-EU shareholders (and limit them to selling shares only to EU citizens) to ensure that Ryanair remains majority owned and controlled by shareholders. of the EU ".

Traffic increased by 6% to 76.6 million passengers and revenues increased by 8% to 4,430 million and although rates fell, revenues from complementary services increased by 27% to 1,300 million euros.

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