Ryanair reports ‘healthy’ profits, ending 2019 as largest European airline
Monday, 03 February 2020
Ryanair, which increased the number of passengers in the last quarter of 2019 to become the largest European airline, is financially healthier.
In a statement released on Monday, the carrier says its sales revenue for the quarter ending on 31 December rose by 21% to 1.9 billion euros in a year, also benefiting from higher revenue per passenger. The number of passengers increased by 6% to 35.9 million.
The net income group share stood at 87.8 million euros, compared to a net loss groupshare of 66.1 million euros a year earlier.
But costs have increased in parallel (+ 10%) for fuel, staff and especially maintenance — the delay in delivery of the Boeing 737 Max has extended the service of its fleet’s oldest aircraft.
Ryanair is thus compelled to postpone its target of 200 million passengers a year.
However, the Irish low-cost airline is still affected by the Boeing 737 MAX deferrals, the fleet of which has been grounded after two accidents. This situation has forced Ryanair to cut back and review its ambitions for 2020.
The low-cost airline does not expect to receive its first 737 MAX before September or October, and warned in late January that the delays could result in new job cuts and office closures.