How cheap will it be? The price war in the aviation industry is crashing Ryanair a massive profit decline. The outlook for the current financial year is also rather gloomy.
In the twelve months to the end of March, the profit of the low-cost airline Ryanair fell by about 39 percent to 885 million euros. Without the start-up losses at Laudamotion, the profit would have been just over one billion euros and thus at the lower end of the forecast lowered in early January. Turnover increased by almost eight percent to 7.7 billion euros.
Reason for the massive decline are the price war in the aviation industry, start-up losses at the acquired airline Laudamotion as well as increased oil prices and costs for personnel.
Also with the competition it runs mixed
After a significant decline in profits, the competitors of Easyjet and Lufthansa are now looking cautiously at the current year. Although the Group expects for the twelve months to end of March 2020 with an increase in passenger numbers by eight percent to 153 million euros. The profit is estimated between 750 million and 950 million euros. This depends on how much revenue per passenger could be increased.
Even with the competitor Easyjet, the recent half-year figures were down because of the expensive fuel and the lower ticket prices. For the summer Easyjet boss Lundgren did not predict a heady development. Uncertainty about Britain’s exit from the EU does not help Easyjet sell as many airline tickets as possible at reasonable prices.
Supply from Germany is growing
The offer of cheap flights from Germany has grown according to a study. Consumers can hope for further price reductions despite rising kerosene prices. For test purchases this spring, the range for the companies surveyed was between just under € 50 and € 106 each way, as shown by a regular study by the German Aerospace Center (DLR). A year earlier, between 53 and 117 euros were due.
Further course information on Ryanair
According to the study, the supply from Germany continued to grow despite the Air Berlin bankruptcy. In a week in January, with 5320 flights, about 500 low-cost flights were planned more than a year earlier. More than half of them were flown by the Lufthansa subsidiary Eurowings, followed by the European market leaders Ryanair and Easyjet. In summer, much more is flown: in one week in July 2018, the DLR had counted 6,750 low-cost flights.
