Slashed fares hit Ryanair profits

 
Harriet Green
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Ryanair’s reported net income of €523m (£426m) for the year ending in March. That’s a eight per cent drop from the €569m it made a year earlier.

Fares fell four per cent, as the budget airline reacted to a tougher environment of a weaker pound and higher fuel costs. As a result, it saw its first decline in profit growth in five years.

Passenger numbers increased just three per cent over the year to 81.7m. Revenue rose the same, to €5m.

Ryanair says it’s expecting full-year profit in the range of €580m to €620m for the current year, though it’s “very cautious” about the second half of the year. Last winter’s weak prices and the firm’s commitment to six per cent capacity growth could mean fares fall by as much as eight per cent.

It expects traffic to grow by four per cent to over 84.6m over the coming year, it added.