Dublin-based carrier, which operates more than 30 routes out of Liverpool , said delays to the delivery of the Boeing 737 Max could lead to redundancies. Tony McDonough reports
Low-cost airline Ryanair has revealed a 21% plunge in first quarter profits amid Brexit fears, European price wars and higher fuel and staff costs.
And the Dublin-based carrier, which operates more than 30 routes out of Liverpool John Lennon Airport, said delays to the delivery of the Boeing 737 Max could lead to redundancies at the company.
The aircraft is grounded as investigations into two fatal crashes continue. Ryanair has ordered 135 of 737 Max models and said delays on their delivery has meant it had already had to scrap 30,000 planned flights in 2020.
Ryanair chief executive Michael O’Leary said if unless Boeing “gets its shit together” in getting the aircraft approved for service again then he may have to close some Ryanair bases and make staff redundant.
In the three months to June 30 profits fell 21% to €243m with lower fares, higher fuel and staff costs the main culprits. Traffic was up 11% to 42m passengers while revenues were 11% to €2.3bn.
Ancillary sales, driven by strong priority boarding and preferred seats sales, grew 27% to €800m. As a result, revenue per passenger was broadly flat at €55.
In its update to the market, Ryanair added: “The two weakest markets were Germany, where Lufthansa was allowed to buy Air Berlin and is selling this excess capacity at below cost prices, and the UK where Brexit concerns weigh negatively on consumer confidence and spending.”
In June Ryanair became the first EU airline to report monthly CO2 emissions. With the highest load factor, and one of the youngest fleets, Ryanair delivers the lowest CO per passenger/km of any major EU airline.
It added: “Our CO2 emissions have been cut by 20% over the last decade and we are committed to reducing this by a further 10% to under 60 grams per passenger/km by 2030.”