Economy

Boeing and Brexit troubles to hit Ryanair's passenger and profit growth

Boeing and Brexit troubles to hit Ryanair's passenger and profit growth”

A Ryanair Boeing 737-800 plane lands at Lisbon's airport, Portugal September 27, 2018.

That represents only 2.6% growth from the current financial year, its slowest in seven years.

During the first six months of the year, the airline's traffic grew 11% to 86 million travellers, while its revenue per guest rose 1% and €250 million was returned to shareholders under a €700 million buyback programme.

The chairman of the U.S. House Transportation and Infrastructure Committee and the head of its aviation subcommittee said on Monday that Boeing's testimony on two fatal 737 MAX crashes prompted new questions.

"The risk of further delay is rising", he said in a post-results video presentation, adding that he does not expect Boeing to achieve its target of getting the plane back in service in the United States by Christmas.

Several smaller airlines have gone bust while others have been taken over, such as the British regional carrier Flybe, which was acquired by a consortium led by Virgin Atlantic earlier this year.

After 2 crashes which killed 346 individuals on Capitol Hill in Washington, October 29, 2019, the manufacturing unit of Boeing's 737 Max has been grounded quickly after the incident.

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O'Leary said: "We have already reduced our passenger growth forecast ... we may have to cut that again but, frankly, there is no point in keeping on changing the number until we get more certainty".

Falls in average fares were less than feared and revenue for optional extras surged 28% after the introduction of a charge to bring a 10kg piece of hand luggage on flights.

Ryanair narrowed its full year profit guidance to a range of €800m to €900m.

That would represent a continued decline from last financial year's 1.02 billion euro profit, which was down from 1.45 billion euros the year before that.

Ryanair reiterated that this will more than halve its passenger growth rate next summer to 3% from 7%, with the airline carrying 157 million people over the year as a whole rather than 162 million as previously planned.

It also warned that losses at its Austrian subsidiary Laudamotion would be higher than expected due to overcapacity in Austria and Germany.

It said it expects the aircraft to drive improvements at the business once they arrive, but that it might not see resultant cost savings until the 2021 full year.



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