Ryanair says fares will drop 7% this year because of more competition
Ryanair fares are expected to fall by 7% this year amid record profits and passenger numbers for the European budget carrier.
Monday's results for the year ending March 31 showed the Dublin-based airline strengthening on every front. Net profit before exceptional gains rose 43% to €1.24 billion (US$1.4 billion) and the percentage of seats sold rose 5 points to 93%.
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Total sales rose 16% to €6.54 billion (US$7.3 billion) and the overall number of passengers for the year rose 18% to 106.4 million.
Chief Executive Michael O'Leary says Ryanair expects average fares to fall around 6% this summer and even more in winter amid increased competition and well-hedged fuel costs.
"If there is a fare war in Europe, then Ryanair will be the winner," O'Leary said. "If other airlines want to compete with us on price, then we will lower our prices again."
He says Ryanair should carry 116 million passengers and record a minimum net profit in 2017 of €1.38 billion, 11% higher than Monday's record figure. Analysts expect Ryanair to beat that forecast by at least €100 million.
Ryanair shares rose 2.4% in afternoon Dublin trading to €13.53.
Gianluca Mezzofiore contributed reporting.
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