Low-cost airline Ryanair reports declining sales in the first quarter compared to the same period the previous year. Operating profit decreased.
Low-cost airline Ryanair reports declining sales in the first quarter compared to the same period the previous year. Operating profit decreased.
Sales decreased by 0.6 percent to EUR 3,626.1 million (3,649.3).
The number of passengers increased by 10 percent to 55.5 million (50.4).
Operating profit was EUR 365.7 million (711.2). The operating margin was 10.1 percent (19.5).
Profit before tax was EUR 400.8 million (740.7).
Profit after tax was 360 million euros (662.9), which was clearly below the company's collected analyst consensus of 538 million.
”While demand for the second quarter is strong, pricing is still weaker than we expected, and we now expect prices in the second quarter to be significantly lower than last summer (previously they were expected to be unchanged to slightly higher),” says CEO Michael O'Leary.
The second quarter, July-September, is the period when Ryanair usually makes most of its profits.
O'Leary further states that visibility for Q3 and Q4 is low and it is too early to provide any profit guidance for the full financial year. However, Ryanair reiterates its forecast of 198-200 million passengers.
The stock falls by over 11 percent in initial trading on the London Stock Exchange.
Source:Finwire
