Feb 6, 2017
Pound’s drop hits Ryanair profits
A falling pound and a flood of rivals moving into its profitable markets dented Ryanair's financial performance in the last three months of 2016, with the airline reporting on Monday that fares and profits fell slightly more than expected during the quarter. The decline pushed post-tax profits for the quarter down 8 per cent to €95m, on revenues that increased 1 per cent to €1.34bn. The profit figure fell just short of the consensus expectation of €99m post-tax profits. Like many European airlines, Ryanair faces a market where excess capacity has helped to drive down fares, terrorist violence in several countries has hit passenger confidence and air traffic control disruption has grown worse. Michael O'Leary, chief executive, said the airline's fares over the winter had fallen sharply as Ryanair continued to increase both its traffic and the proportion of its aircraft operating at full capacity. The falling yields - the average fare paid per mile - had been exacerbated by the sharp decline in sterling following Britain's vote to leave the EU in June.
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