Ryanair: Brexit falls profits
Ryanair’s profits fall 8 per cent for the third quarter of 2016 to 95million euros as average fares fell by 17 percent to just 33euro per passenger while trafficking was rising and grew to 16% 29 million passenger during quarter.
However Irish air-carrier believes that the uncertainty post Brexit, weaker Sterling and the switch of charter capacity from Turkey Egypt and North Africa into Spain and Portugal will continue to put downward pressure on pricing for the remainder of this year and next 2018 hence having a combination of lower prices and increased availability and AGB service improvements has stimulated industry load factors millions of new customer switch to Ryanair.
“Brexit was exacerbate the falling yield by the sharpen decline in Sterling following the vote in June 2016” quoted Michael O’Leary Ryanair’s CEO and added that:” It appears we heading for a hard Brexit there is still significant uncertainty in a relation to what this will entail and expects Sterling to remain volatile for some time and we may see a slowdown in economic growth in both UK and Europe as we move closer to Brexit.”
Planning new routes from UK Stansted:
Whether “hard” or “soft “ Brexit the Irish company has already planned to commence nine brand new routes including Copenhagen Naples Nice while increasing capacity on eleven existing routes.
Furthermore during the falling profits of the third quarter Ryanair manage to open new two bases in Frankfurt Main and break the duopoly of Lufthhansa and Air Berlin wet lease agreement at Tegel airport. O’leary commented that: ” we this agreement is nothing more than an old fashioned at duopoly to share the market block competition and increase air fares.”
