Ryanair FY17 Profit Down; Says Cautiously Guides Profit Growth In FY18

Shares of Ryanair Holdings Plc (RYA.L,RYAAY) were losing around 2 percent in the early morning trading in London after the Irish no-frills airline Tuesday said it is cautiously guiding a profit increase in fiscal 2018 after reporting weak profit in fiscal 2017. The latest year profit was hurt by the absence of prior year’s gain, while revenues increased with strong traffic growth.

Ryanair added that its Board has approved a further 600 million euros share buyback.

For the year, profit before tax was 1.47 billion euros, down from 1.72 billion euros a year ago. Profit – all attributable to equity holders of parent- was 1.32 billion euros or 104.64 euro cents per share for the year. This was compared to the last year’s 1.56 billion euros or 115.63 euro cents per share that included an exceptional accounting gain of 317.5 million euros on the sale of Aer Lingus shareholding.

Excluding the gain, the previous year’s pre-tax profit was 1.40 billion euros and net profit was 1.24 billion euros.

Ryanair’s CEO Michael O’Leary stated that the results were achieved despite difficult trading conditions caused by a series of security events at European cities, a switch of charter capacity from North Africa, Turkey and Egypt to mainland Europe, and a sharp decline in Sterling following the June 2016 Brexit vote.

Fiscal year total operating revenues from continuing operations were 6.65 billion euros, 2 percent higher than 6.54 billion euros a year ago.

Scheduled revenues declined 2 percent to 4.87 billion euros, while ancillary revenue grew 13 percent to 1.8 billion euros, and accounted for 27 percent of total revenues.

The company said the combination of a 13 percent cut in average fares to 41 euros, coupled with Year 3 of the “Always Getting Better” program delivered 13 percent traffic growth to 120 million customers, and a load factor of 94 percent.

Unit costs fell by 11 percent, while ex-fuel costs were down 5 percent.

Further, the company noted that it created over 1,000 new…

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