Ryanair pilot strike threat over working practices raises fears of holiday disruption

  • Ryanair pilot strike threat over working practices raises fears of holiday disruption

Ryanair pilot strike threat over working practices raises fears of holiday disruption

Despite the disruption caused by its pilot crisis last autumn, City analysts believe that the budget airline will post statutory pre-tax profits of 1.6 billion euro (£1.4billion) for the 12 months to March 31, a 9.4 per cent increase on the corresponding period previous year.

The Irish carrier announced that had it achieved a 9 percent increase in passengers, to 130 million, which led net profit to soar to a record €1.45 billion ($1.7 billion) in the year to March 31.

"Air fares tend to follow oil prices (as they have downwards over the last three years), but with a lag of up to 12 months before higher oil prices feed through to higher air fares", O'Leary said.

Ryanair Chief Marketing Officer Kenny Jacobs, who also spoke in Dublin, cautioned that fleet decisions ultimately come down to price, which might mean the airline "ends up always being Boeing".

Ryanair said it sees non-fuel unit costs up 6%, following pay increases to pilots and other staff. Raymond James analyst Savanthi Syth, in a research note, called that "the biggest surprise".

Speaking to CNBC on Monday, O'Leary said: "Clearly $80 a barrel oil is going to bring casualties in Europe this winter".

However, the expectations for the current Fiscal Year (April 2018- March 2019) are "on the pessimistic side of cautious" according to Michael O'Leary's last statement.

The Dulin & London-listed firm, which has been negotiating a deal with unions over working practices, warned that it expects higher staff and fuel costs to impact its bottom line in fiscal year 2019. LaudaMotion has a valuable portfolio of slots at many congested airports in Germany, Vienna, and Palma de Mallorca.

The group forecast profit after tax of between 1.25 billion and 1.35 billion euros over the next 12 months, lower than analyst forecasts.

Michael O'Leary said the airline is preparing for a hard Brexit.

He predicted that some may be forced out of business within the next year, and that would affect how much money Ryanair makes in the future.

Its aircraft were also more full than rivals', with its so-called load factor of 95 percent the highest among European low cost airlines.

"This will lead to a modest increase in ex-fuel unit costs next year but will underpin our growth to nearly 600 aircraft and 200m guests per annum by FY24, " O'Leary said.

Ryanair, Europe's biggest low-priced airline, is grappling with increased costs after a rostering foul up a year ago left it short of pilots and compelled it to give in to demands for union recognition and sweetened contracts.