QIguy24 From , joined Dec 1969, posts, RR: Reply 1, posted (9 years 6 months 1 week 6 days 23 hours ago) and read 2123 times:
I read that too. But I'm sure that is going to be peanuts for them. They already have so much money already.
But I wonder how the investors will think about this in the future. The LCC's are really starting to feel then pressure from the majors who offers almost as low prices as the LCC's.
Summary Table of Results (Irish GAAP) - in Euro
Year ended Mar 31, 2003 Mar 31, 2004 % Increase
Passengers 15.74m 23.13m 47%
Revenue €842.50m €1,074.20m 28%
Note 1: Adjusted profit after tax and EPS, excludes the non-recurring costs of €14.9m (net of tax) arising from the earlier than planned retirement of 6 Boeing 737-200 aircraft, the re-organisation of “Buzz” in April’03 of €2.7m (net of tax), and a Goodwill charge of €2.3m.
Pe@rson From United Kingdom, joined Jan 2001, 19022 posts, RR: 53 Reply 2, posted (9 years 6 months 1 week 6 days 21 hours ago) and read 2026 times:
But it's for the winter... U2 posted a loss as well, as it normally does. Both carriers will more than make up the difference during the all-important summer. I don't think they're starting to feel the pressure from the so-called traditional carriers.
"Everyone writing for the Telegraph knows that the way to grab eyeballs is with Ryanair and/or sex."
Luv2fly From United States of America, joined May 2003, 12019 posts, RR: 50 Reply 3, posted (9 years 6 months 1 week 6 days 21 hours ago) and read 2008 times:
I think at some point the LCC's and the so called majors will be each feeling the pressure from each other. More so than now.
#01. You will always have the people who must have the cheapest flights, and then you have the ones who wanted the cheapest and then hated it and will thus go back to the majors.
#02. The LCC's are quicker to change when market conditions require them to, not all the layers of a Hugh corporation.
#03. The majors can switch to bigger or smaller aircraft to there benefit, where as the LCC's usually do not have a bigger or smaller plane available.
#04. The majors usually offer more flights and better FF perks, more desired by high paying business flyers.
#05. For the most part the majors fly from airports that people want to fly from. The LCC"s really develop markets that might not be flying.
QIguy24 From , joined Dec 1969, posts, RR: Reply 4, posted (9 years 6 months 1 week 6 days 21 hours ago) and read 1996 times:
You are right. It is for the winther period. But it's still a bigger loss then that same period last year. and what about next year. The same thing will probalby happen next year as well. I do believe they get a little pressure from the majors
CarbHeatIn From Ireland, joined Jun 2004, 211 posts, RR: 0 Reply 5, posted (9 years 6 months 1 week 6 days 21 hours ago) and read 1991 times:
Ryanair profits better than expected
June 01, 2004 12:47
Ryanair has reported better than expected full year results and has given positive indications on summer bookings, but warned that the winter season would not be as bright.
The budget airline, Europe's largest, reported a 5% drop in full year net profit to €226.6m before goodwill and exceptional items, beating forecasts of €195 to €218m. Adjusted earnings per share were down 6% to 29.9 cent - again higher than the average forecast of 27.9 cent.
Annual passenger traffic grew by a record 47% to over 23 million. Ryanair said this growth was fueled by 'significantly lower fares'. Total revenues rose by 28% to over €1 billion for the first time, due to a 14% fall in yields.
The airline had flagged a 10% net profit drop in January when it warned it was having to slash ticket prices to fill seats on a rapidly expanding network amid intensely competitive conditions
'Contrary to our earlier fears, our adjusted profit in the final quarter marks our 28th consecutive profitable quarter since Ryanair first floated in May 1997,' a statement from the company said.
'Our lookout for the next 12 months remains very conservative,' Chief Executive Michael O'Leary said. He added that he expected passenger traffic growth to drop to around 20% this year from 47% the previous year.
He predicted that there will be more airline casualties next winter, a process that has already started in recent months with the closure of four airlines in Ireland, the UK and Scandinavia.
Ryanair also pledged to lower prices further over the next four years as it expands traffic to over 50 million passengers a year.
Michael O'Leary said the year was characterised by adverse market conditions, including sterling weakness, the war in Iraq, the threat of terrorist attacks, significantly higher oil prices and intense price competition all over Europe.
'Despite these challenges, Ryanair has significantly lowered fares for our customers, carried over 23 million passengers, still maintained a world leading after tax profit margin of over 20% and ended the year with over €1.2 billion in cash,' O'Leary added.
He said the airline's two new bases in Rome Ciampino and Barcelona Girona are performing 'extremely well'. Current bookings indicated that load factors are both bases will exceed 85% throughout the summer period.
O'Leary predicted that regulatory battles, such as those in Charleroi and Strasbourg, will continue this year, but dismissed them as 'temporary obstacles'. He said the airline is confident of winning both its appeals on the Charleroi and Strasbourg cases.
Dismissing the recent 'hysteria' about higher oil prices, O'Leary said he believes the growth of low fare travel will not be damaged or slowed by higher fuel prices.
'Whilst we are almost fully hedged till the end of the second quarter, we are largely unhedged thereafter, as it would be unwise to lock in at the current high forward rates,' the Ryanair CEO said. 'Our view is that prices will fall this winter, or next year, and only then will we hedge, in order to benefit from such reductions,' he added.
Ryanair shares were down eight cent to €4.30 in Dublin by lunchtime.
* Ryanair said today that its passenger numbers for May flew 19% higher to 2.17 million compared to the same month last year. Its load factor - an industry measure of how many seats were sold - rose to 81% in May. This compares to a load factor of 77% in May 2003.
Cx123 From Australia, joined May 2004, 695 posts, RR: 0 Reply 8, posted (9 years 6 months 1 week 6 days 19 hours ago) and read 1907 times:
Didn't Ryanair start to decrease Seat Pitch and also cut back on more things (are there anymore things to cutback)
I will never travel on Ryanair! I mean this is starting to prove that to be a successful LCC, you still have to provide some decent service and also have a good product!! B6 is such as good example of LCC. To be honest, the Soft Drinks and the snacks does not cost that much, the marginal cost in providing these items can add so much better quality to the product and therefore attract more customers.
Also for seat pitch, I think for LCC they migh as well increase it as the extra revenue they get (lets say 3 rows) is only like less than 5000 USD (based on the LCC fares), but by offering that extra space throughout the aircraft it adds to the overall product comfort and overall better image.
Just want to know for Ryanair, what are yields like in major european cities?
Pe@rson From United Kingdom, joined Jan 2001, 19022 posts, RR: 53 Reply 10, posted (9 years 6 months 1 week 6 days 11 hours ago) and read 1753 times:
"Another benefit,is arriving near a city!"
So FR doesn't serve DUB - yes, the main airport - from a host of UK airports, including LGW, LTN, STN, BOH, BRS, CWL, BHX, EMA, MAN, LPL, GLA, EDI, ABZ... ? Must have been a figment of my imagination, then, for I was sure it did.
The argument that FR does not serve convenient airports is becoming somewhat tedious. You must ask yourself this: if it was so terrible, then why would passenger numbers be increasing? The answer is self-explanatory. You also assume that passengers flying into, say, BGO wish to visit Milan, but in fact it's a very convenient place from which to visit Switzerland (by car), for it's about an hour's drive to the border. And then there's the possibility of touring Italy... Don't assume that people flying into these small airports just want to visit the nearest biggest city, as they do not. Accordingly, these unfairly-dubbed 'inconvenient' airports might indeed be the exact opposite.
Ryanair is a business. It exists to make a profit. To help it achieve this, it must find ways to reduce its costs and there’s only so many ways you can do this before embarking on minor or major innovations, hence the unprecedented cost-cutting moves, like removing the reclining function, window slides, and so on. All of these receive public curiosity simply because they’re new.
NO business should ever become complacent – it should always invest in research and development in order to help it to achieve its objective. Ryanair is simply finding new ways of reducing its costs in order to deliver what its target audience require – low prices. For this, we must commend the carrier. Granted, some people will not like the bus-like service, so thankfully there’s normally a choice. Nevertheless, I am personally very pleased to see Ryanair covering new ground and finding innovative and exciting ways to reduce its costs which will thereby help it to become more efficient. For this I commend the airline. I am very, very glad that Ryanair is not just another airline which does exactly the same as every other; instead, it does its own distinct and unique thing.
Ryanair offers unprecedented convenience on a number of routes, like those from STN to Linz, Salzburg and Klagenfurt. If you previously wanted to fly from London to, say, Klagenfurt, you’d have to go via Germany or via Vienna, both of which would be far more inconvenient and undoubtedly considerably more expensive. But nowadays you can fly Ryanair direct to Klagenfurt, which is considerably more convenient and, on the whole, far cheaper. So this situation is bad, eh? I think not. It's the same if you want to fly to a host of airports in Italy, Spain and France. What if you previously wanted to fly from London to, say, Bari, Biarritz or Murcia, you would have had little option but to spend a fortune in time and money flying AZ via Milan, AF via Paris, and IB via MAD (or fly BA at a higher price). So, again, the convenience and choice is superb.
[Edited 2004-06-02 00:22:42]
"Everyone writing for the Telegraph knows that the way to grab eyeballs is with Ryanair and/or sex."