Latest news with #budgetcarrier
Sky News
19-05-2025
- Business
- Sky News
Ryanair raises fares after profits hit by lower ticket prices
Why you can trust Sky News Europe's largest airline has seen annual earnings drop by 16% after cutting air fares - but revealed a price hike as it seeks to return to growth. Ryanair reported profits after tax fell to €1.61bn (£1.35bn) for the year to 31 March, down from €1.92bn (£1.61bn) in 2024, still the second highest on record. On average, plane tickets were 7% cheaper during this period than the 12 months before, it said. There had been a 21% rise in fares in the year up to March 2024, which bosses had signalled was due to end. Higher-for-longer interest rates and inflation in the first half of the year meant ticket prices had to come down, the budget carrier said. But fares are already back on the rise, Ryanair's chief executive Michael O'Leary said. The airline "cautiously" expects to recover "most, but not all" of the fare decline, which he said will boost profits. Demand for summer flights is "strong", Mr O'Leary said, with peak fares "modestly" ahead of last year. In recent months, that rebound has already been under way. Fares since April are on track to be "a mid-high teen per cent ahead" by the end of next month, compared with the same period last year. That trend is expected to continue to July, August and September, Mr O'Leary said. "While we cautiously expect to recover most, but not all of last year's 7% fare decline, which should lead to reasonable net profit growth in 2025-26, it is far too early to provide any meaningful guidance," he said. "The final 2025-26 outcome remains heavily exposed to adverse external developments, including the risk of tariff wars, macro-economic shocks, conflict escalation in Ukraine and the Middle East and European air traffic control mismanagement/short staffing." Passenger numbers grew to a record 200 million on the back of cheaper fares, hitting a target that had been reduced due to delays in delivering new Boeing planes. The US manufacturer has struggled with increased regulatory oversight after a door panel blew off an Alaska Airlines plane mid-flight in January last year. Strike action by staff had added to the delays. The forecast for passenger numbers has been reduced again. Ryanair now aims to transport 206 million passengers in this financial year. It hopes to reach 300 million passengers by 2034 and on Monday said it still expects to receive 300 new Boeing planes by 2033.
BreakingNews.ie
19-05-2025
- Business
- BreakingNews.ie
Ryanair to raise prices as it seeks return to profit growth
Ryanair has seen annual earnings tumble 16 per cent after slashing air fares to help boost demand, but revealed prices are to rise as it seeks to return to growth. The budget carrier reported pre-tax profits of €1.78 billion for the year to March 31st, down from €2.13 billion after average fares fell seven per cent. Advertisement Profits after tax were also 16 per cent lower at €1.61 billion. Ryanair FY25 Results = €1.61BN profit after tax ✈️ Traffic up 9% to record 200M despite Boeing delays ✈️ Average fare down 7% ✈️ 160+ new routes for S25 Full details 👉 — Ryanair Press Team (@RyanairPress) May 19, 2025 Lower air fares helped passenger numbers grow nine per cent to 200.2 million in the year, but the group said it expects growth of just three per cent in 2025-26 due to delayed deliveries of Boeing aircraft. In a blow to passengers, the group said fares will rise sharply as it looks for a turnaround over the year ahead, with prices on track to increase by a 'mid-high teen per cent' year on year in its first quarter. The group added that over the key summer quarter, it is also hoping to claw back some of the seven per cent drop in fares seen a year earlier. Advertisement Chief executive Michael O'Leary said: 'While we cautiously expect to recover most but not all of last year's 7% fare decline, which should lead to reasonable net profit growth in 2025-26, it is far too early to provide any meaningful guidance. 'The final 2025-26 outcome remains heavily exposed to adverse external developments, including the risk of tariff wars, macroeconomic shocks, conflict escalation in Ukraine and the Middle East, and European air traffic control mismanagement/short-staffing.' The group said it resorted to fare cuts last year to boost passenger numbers in the face of pressure on consumer spending, as well as the timing of Easter last year and and a steep drop-off in bookings through online travel agencies. Ireland Average monthly rent exceeds €2,000 for the first... Read More Meanwhile, it has slashed its passenger forecasts a number of times due to Boeing aircraft issues. Advertisement Airlines have been knocked by problems at Boeing, which was hit hard by a lengthy strike at the end of last year, while the aerospace giant has had to slow down production of its 737 Max aircraft after a door panel blowout on a commercial flight in January last year. Tariff woes are adding to the headache, with Ryanair warning recently that aircraft deliveries may be deferred if tariffs imposed by US President Donald Trump make them more expensive.
Yahoo
19-05-2025
- Business
- Yahoo
Ryanair to raise prices as it seeks return to profit growth
Ryanair has seen annual earnings tumble 16% after slashing air fares to help boost demand, but revealed prices are to rise as it seeks to return to growth. The budget carrier reported pre-tax profits of 1.78 billion euros (£1.5 billion) for the year to March 31, down from 2.13 billion euros (£1.79 billion) after average fares fell 7%. Profits after tax were also 16% lower at 1.61 billion euros (£1.35 billion). Lower air fares helped passenger numbers grow 9% to 200.2 million in the year, but the group said it expects growth of just 3% in 2025-26 due to delayed deliveries of Boeing aircraft. In a blow to passengers, the group said fares will rise sharply as it looks for a turnaround over the year ahead, with prices on track to increase by a 'mid-high teen percent' year on year in its first quarter. The group added that over the key summer quarter it is also hoping to claw back some of the 7% drop in fares seen a year earlier. Chief executive Michael O'Leary said: 'While we cautiously expect to recover most but not all of last year's 7% fare decline, which should lead to reasonable net profit growth in 2025-26, it is far too early to provide any meaningful guidance. 'The final 2025-26 outcome remains heavily exposed to adverse external developments, including the risk of tariff wars, macroeconomic shocks, conflict escalation in Ukraine and the Middle East, and European air traffic control mismanagement/short-staffing.' The group said it resorted to fare cuts last year to boost passenger numbers in the face of pressure on consumer spending, as well as the timing of Easter last year and and a steep drop-off in bookings through online travel agencies. Meanwhile, it has slashed its passenger forecasts a number of times due to Boeing aircraft issues. Airlines have been knocked by problems at Boeing, which was hit hard by a lengthy strike at the end of last year, while the aerospace giant has had to slow down production of its 737 Max aircraft after a door panel blowout on a commercial flight in January last year. Tariff woes are adding to the headache, with Ryanair warning recently that aircraft deliveries may be deferred if tariffs imposed by US President Donald Trump make them more expensive.
The Independent
19-05-2025
- Business
- The Independent
Ryanair to raise prices as it seeks return to profit growth
Ryanair has seen annual earnings tumble 16% after slashing air fares to help boost demand, but revealed prices are to rise as it seeks to return to growth. The budget carrier reported pre-tax profits of 1.78 billion euros (£1.5 billion) for the year to March 31, down from 2.13 billion euros (£1.79 billion) after average fares fell 7%. Profits after tax were also 16% lower at 1.61 billion euros (£1.35 billion). Lower air fares helped passenger numbers grow 9% to 200.2 million in the year, but the group said it expects growth of just 3% in 2025-26 due to delayed deliveries of Boeing aircraft. In a blow to passengers, the group said fares will rise sharply as it looks for a turnaround over the year ahead, with prices on track to increase by a 'mid-high teen percent' year on year in its first quarter. The group added that over the key summer quarter it is also hoping to claw back some of the 7% drop in fares seen a year earlier. Chief executive Michael O'Leary said: 'While we cautiously expect to recover most but not all of last year's 7% fare decline, which should lead to reasonable net profit growth in 2025-26, it is far too early to provide any meaningful guidance. 'The final 2025-26 outcome remains heavily exposed to adverse external developments, including the risk of tariff wars, macroeconomic shocks, conflict escalation in Ukraine and the Middle East, and European air traffic control mismanagement/short-staffing.' The group said it resorted to fare cuts last year to boost passenger numbers in the face of pressure on consumer spending, as well as the timing of Easter last year and and a steep drop-off in bookings through online travel agencies. Meanwhile, it has slashed its passenger forecasts a number of times due to Boeing aircraft issues. Airlines have been knocked by problems at Boeing, which was hit hard by a lengthy strike at the end of last year, while the aerospace giant has had to slow down production of its 737 Max aircraft after a door panel blowout on a commercial flight in January last year. Tariff woes are adding to the headache, with Ryanair warning recently that aircraft deliveries may be deferred if tariffs imposed by US President Donald Trump make them more expensive.
Skift
06-05-2025
- Business
- Skift
Can Small Cities be Spirit's Savior? Carrier Eyes Underserved Markets in New Deal
This new partnership looks like a smart workaround within the limits of Spirit's operating model. If routes are chosen well, it could be the most creative chapter yet in the carrier's post-bankruptcy playbook. Spirit Airlines, still navigating its post-bankruptcy recovery, is betting on 'historically underserved regions' to help fuel its comeback. The ultra low-cost carrier has announced a strategic partnership with regional operator Contour Airlines. It aims to link Essential Air Service (EAS) markets in the United States with major leisure destinations. The deal gives Spirit access to small cities without the overhead of traditional regional operations. Depending on its scale, it could mark a smart step towards profitable network growth after a challenging few months. According to the companies, the agreement 'will increase connectivity to the national air transportation system and bring affordable travel options to underserved communities across the country.' Contour is best known as one of the largest operators within the U.S. Department of Transportation's EAS program. It currently serves 22 EAS airports across the continental United States, focusing on the Southeast and Midwest. To help balance the books, Contour will provide ground-handling services to Spirit at its existing EAS airports. For Spirit, this avoids the cost of contracting its own independent ground handling agents at off-beat locations which may only be served several times a week. Contour also said it will 'leverage its deep community relationships' to cross-market the new Spirit flights. Low-Cost Model; Low-Cost Entry 'Our new partnership with Contour gives us an exciting opportunity to grow our network and explore low-cost entry into new markets that currently have limited service," said John Kirby, VP of Network Planning at Spirit. The Florida-based budget carrier has not disclosed which new airports it plans to serve. In a joint statement with Contour on Monday it said it will 'introduce service to major leisure destinations from a number of Contour's EAS markets.' The companies added that the partnership will 'significantly expand the utilization and reach of the airports served.' Initial routes are expected to be announced this summer ahead of the all-important winter leisure travel season. While it remains to be seen which airports are served, the deal could mirror the successful strategy of Allegiant Air. The Las Vegas-based operator's business model connects smaller cities – usually with little or no direct competition – with major leisure destinations. "EAS communities no longer need to choose between national connectivity and low fares,' added Contour president, Ben Munson. 'The combination of service from our two airlines is the best formula to grow passenger traffic in these underserved airports.' Contour confirmed that its EAS contract work will continue. This typically sees the carrier fly from underserved markets to major connecting hubs of its partners. These include Alaska Airlines, American Airlines, and United. Spirit Eyes Sustainable Growth The development follows a turbulent year for Spirit Airlines. The carrier filed for Chapter 11 bankruptcy in November, just months after its proposed merger with JetBlue was struck down in court. Ultra-low-cost rival Frontier previously made an offer to acquire Spirit. However, this was rejected by Spirit's shareholders after JetBlue made an all-cash offer valued at $3.8 billion, which included a higher break-up fee. In January, Frontier management made a renewed bid for Spirit. Writing at the time, Frontier chairman Bill Franke described the proposal as 'a compelling opportunity that will result in more value than Spirit's standalone plan.' This additional approach was promptly knocked back by Spirit, which said it wanted to stick to its plan as a standalone carrier. In March, Spirit Aviation Holdings Inc., the parent company of Spirit Airlines LLC, emerged from its financial restructuring. Last month, former Sun Country Airlines president and CFO Dave Davis was appointed as Spirit's new CEO. Spirit has struggled to turn a profit in recent years for a variety of reasons, including Pratt & Whitney engine issues and sustained demand for premium and international travel. The Allegiant Travel Company, the parent firm of Allegiant Air, is due to report its first-quarter earnings later on Tuesday. How Allegiant's Florida Resort Became a Drain on Its Profits Allegiant wanted to go into the hotel business with a sprawling resort in southwest Florida. Now, just over a year later, it's looking to offload the costly hotel. Read More What am I looking at? The performance of airline sector stocks within the ST200. The index includes companies publicly traded across global markets including network carriers, low-cost carriers, and other related companies. The Skift Travel 200 (ST200) combines the financial performance of nearly 200 travel companies worth more than a trillion dollars into a single number. See more airlines sector financial performance. Read the full methodology behind the Skift Travel 200.
