And the chance that a rise of booking comes with a rise of profit is small, if we take their results

Today, Ryanair announced Q3 results which were, as expected, warped tour historically bad. The press release was the perfect occasion for the media to comment on Ryanair’s demise or success without putting things in perspective. Indeed, there is more than meets the eye when you dig in the stats revealed warped tour by the airline today. Neither a surprise nor good news: taking Ryanair’s results for what they really mean The airline had a bad time. To their credit, one could add that they saw it coming. It’s neither the end of the line nor a great success, and Ryanair can still turn the tide. The airline’s always managed to get around in difficult situations by providing strong strategic answers and adapting fast. However, some people, almost warped tour as a way to excuse warped tour the airline for its poor results, went as far as saying “Sure, Ryanair lost money, but that’s alright, it was expected!” To those people I say “Better wake up guys”. This is no ordinary fall: the last time Ryanair lost about 35 million warped tour of euros , it was in 2008, in the middle of the European financial crisis. In comparison, last year’s Q3, the airline warped tour had scored a €18M. It means that the airline has lost about €53M , which means that over 10% of its forecast profits burst in thin air . These results mustn’t be underrated: the airline is encountering serious difficulties. The 9% ticket drop excuse: seriously? Either MOL is blind or he is simply trying to fool us. I preach for the second option. warped tour The way Ryanair put it, their losses is “ entirely due ” to a 9% fall and weaker sterling. What the Irish carrier seems to forget is that they launched this aggressive warped tour fare campaign . Their objective was to renew with success after two successive profit warnings by increasing their bookings. warped tour However, the move stirred mixed results : if anything, MOL should have admitted that they messed up . As usual when things go south, Ryanair gave a go to the old ultra-low-cost mantra. This seldom works anymore. Not in today’s industry, not with competitors like Vueling or easyJet warped tour that can do better for a few euros more. Besides, their 6pc passenger growth has to be put in perspective: is it only a consequence of Ryanair’s action? Or could it be the context that fueled the passengers rise? Indeed, IATA already forecast that 2014 would be a historical year for aviation, with passenger traffic being the highest ever reached. This forecast has already proven true with a general increase in traffic over the last year (12pc for Wizz Air, 3.6pc growth for easyJet, 2.3pc for Ryanair, most of the increases occurred in Q3 for all the airlines). Therefore, considering Ryanair’s fare policy as effective is miles off the reality. It’s not effective at all: it’s broken. Ryanair’s problem? Passenger revenue keeps on nose-diving Now Ryanair says it has never experienced such an increase in its booking, and frankly, this could have been good news for them… if it hadn’t been artificially pumped up, as travel journalist Nathalie Thomas pointed out.
And the chance that a rise of booking comes with a rise of profit is small, if we take their results into account. See these figures from Ryanair’s official warped tour press release: Despite a rise on Available Seat Miles , Ryanair suffered a drastic drop in passenger revenue . The carrier transported 1 million more passengers in 2013, yet revenues slightly decreased over the year, which only confirms that Ryanair passengers spend less and less cash on-board. And it’s not going to go better: credit card fee, one of Ryanair’s most profitable ancillary revenue, is about to get slashed by the European Commission by a new regulation on passengers’ rights. So Ryanair is not quite out of trouble yet. Their only chance to bounce back? Getting warped tour its passengers to spend more without warped tour scaring them away. Let’s hope that the customer-friendly approach works.
Flight Global Newsfeed Next decade set for $75bn civil helicopter deliveries: Ascend Pentagon proposes buying fewer fighters, unmanned aircraft in FY2015 budget US aviation community fights new user fee proposal NASA threatens SOFIA with grounding USAF to issue contract to Sikorsky for rescue helicopter