Julian together with this blog have consistently and robustly maintained the view that the recent problems caused by the Ryanair pilot rostering failure would not have a long term effect on Ryanair results, and that customers would quickly return, as they weigh up the future various deep discounted fares offered by the airline against those offered by competitors.
At times we have been shouted down by certain City Analysts, and challenged by some newspaper editorials, but our view has remained consistent throughout.
We say those commentators and analysts need to get out more and talk to people, rather than just remain deskbound and Google up their 'research'.
Simply Ryanair is known as a no frills, low cost airline, BUT that is where it ends, as the available fleet is one of the youngest flying today and impeccably maintained, the company is sitting on a massive financial warchest, cannily bought its fuel forward, has access to its own superior pilot and crew training school - a school highly respected all over the aviation world - and considered the best route into commercial aviation for new pilots and also has extensive interest in the aircraft leasing business. It has also recruited some 900 new pilots...so no more scare stories over pilot shortage inside Ryanair. Its simply not so, especially as 25 aircraft have been mothballed for a while. Other airlines however might soon be facing problems in this area ...
It is also within the EC, and has been so for many years... Certainly customer service took a back seat and many people were disadvantaged. The CAA also stepped in to lay down the law and corrected various compensation and duty of care offers posted by Ryanair. Rather than second guess, the latest interim results, we have run them in full, in order that as a matter of record, we leave nothing out.
The statement by the company needs to be read in full as it is very much like a jigsaw, with interlocking claims and offers. The interim results are however impressive.
Profits and traffic both up by11%. Q2 Load Factors heading for an astonishing 97% and their Full Year Profit guidance remains unchanged. Not many airline groups can match that.
Ryanair Cuts H1 Fares By 5%, Profits Rise 11%Traffic Grows 11% As Q2 Load Factors Improve To 97%FY Profit Guidance Unchanged
|H1 Results (IFRS)||Sept 30, 2016||Sept 30, 2017||% Change|
|Profit after Tax (m)||€1,168||€1,293||+11%|
“These strong H1 results reinforce the robust nature of Ryanair’s low fare, pan-European growth model even during a period which suffered a material failure in our pilot rostering function in early September. Prior to this event, we were on track to deliver strong H1 results during which we opened 3 new bases and 80 new routes. We took delivery of 35 new B737’s in the first 6 months of 2017, we stimulated 11% traffic growth with 5% lower airfares, and achieved an industry record load factor of 97% in the peak summer months.