jomur
Topic Author
Posts: 195
Joined: Sun Jun 19, 2016 6:36 pm

Ryanair post loss for last 3 months of year..

Mon Feb 04, 2019 8:21 am

https://www.bbc.co.uk/news/47113639

"Ryanair posted a net loss of €19.6m (£17.2m) for the last three months of the year as fierce competition forced it to cut fares."

Whilst Easyjet seemed to be doing alright..
 
factsonly
Posts: 2693
Joined: Mon Aug 06, 2012 3:08 pm

Re: Ryanair post loss for last 3 months of year..

Mon Feb 04, 2019 8:33 am

A change of Euro -126 million versus the previous year, due to over-capacity in Europe and thus lower yields.

Full year results are expected to be Euro +1 billion, but with a warning for possible lower results due to adverse economic climate.
 
tomgle
Posts: 72
Joined: Tue Apr 03, 2018 4:20 pm

Re: Ryanair post loss for last 3 months of year..

Mon Feb 04, 2019 8:48 am

I remember O'Leary predicting a tough winter financially for Ryanair and the European airline industry in general.
 
5NFGS
Posts: 84
Joined: Thu Oct 13, 2016 7:14 am

Re: Ryanair post loss for last 3 months of year..

Mon Feb 04, 2019 9:19 am

Wow.........tough winter indeed in Europe.
Heaven knows what Q1 holds
A 319/320/321,A 330-200/300, A 340-300/500/600, B 737-300/400/500,B 737-700/800,B 747-300/400,B 767-200 ER/300 ER, B 777-200/200 ER,CRJ 200/900/1000,DHC-8-300/Q 300, DC-10, ERJ-195,MD-11
 
a350lover
Posts: 715
Joined: Sun Dec 24, 2017 11:21 am

Re: Ryanair post loss for last 3 months of year..

Mon Feb 04, 2019 9:20 am

Aviation is giving many signs that the current offer on the market isn't sustainable for the mid term. Ryanair loss is a bit of a warning to the whole industry.
 
Blerg
Posts: 2017
Joined: Tue Jan 09, 2018 11:42 am

Re: Ryanair post loss for last 3 months of year..

Mon Feb 04, 2019 9:33 am

Could this be one of the reasons why they have cut Weeze and Eindhoven operations? I know they said it was due to labour issues but could it actually be about cutting losses where they can?
 
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Mortyman
Posts: 5685
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Re: Ryanair post loss for last 3 months of year..

Mon Feb 04, 2019 9:38 am

Ryanair unveiled Monday plans for an overhaul to create four subsidiaries


Mirroring a set-up by British Airways and Iberia owner IAG, a statement said it planned to have four distinct operations, each with its own chief executive.

Michael O'Leary will head up the overall group, Ryanair said. Under him will be Ryanair DAC overseeing the Irish operations and there will be also Ryanair UK, Laudamotion for its Austrian business and Ryanair Sun, or Polish unit.


https://news.yahoo.com/ryanair-restruct ... RzZWMDc3I-
 
a350lover
Posts: 715
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Re: Ryanair post loss for last 3 months of year..

Mon Feb 04, 2019 9:42 am

I also have the impression that the new policies introduced by Ryanair regarding the need to pay for carry-on bags is hurting a lot. Now it's not enough for Ryanair to be as cheap as the competence. They need to show a good gap between its lowest fare and the immediately closer competitor so that the customer can add the fee to bring a carry on bag.

On top of that, the policy is yet "messy" and "unclear" for most of the non-frequent customer base. Ryanair chose a bad timing for introducing this.
 
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ClassicLover
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Re: Ryanair post loss for last 3 months of year..

Mon Feb 04, 2019 10:15 am

a350lover wrote:
I also have the impression that the new policies introduced by Ryanair regarding the need to pay for carry-on bags is hurting a lot. Now it's not enough for Ryanair to be as cheap as the competence. They need to show a good gap between its lowest fare and the immediately closer competitor so that the customer can add the fee to bring a carry on bag.


You may want to read the news articles about it. They state ancillary revenue was up 26% in the period, so the pay for carry-on bags is a great success for them.

Since unions became a thing, pilots did get a nice pay rise, among others. Higher costs in these areas are certainly having an impact. Still, it's Ryanair, they'll work it out. Plus they are still predicting over €1 billion profit for the year, so I think the tiny loss in the quarter is no big deal.
I do enjoy a spot of flying, especially when it's not in economy!
 
a350lover
Posts: 715
Joined: Sun Dec 24, 2017 11:21 am

Re: Ryanair post loss for last 3 months of year..

Mon Feb 04, 2019 10:32 am

ClassicLover wrote:
You may want to read the news articles about it. They state ancillary revenue was up 26% in the period, so the pay for carry-on bags is a great success for them.


Well, if they had introduced this fee to not see any increase in revenue, maths simply wouldn't exist. That increase in ancillary revenue is a pretty obvious thing. However, I am pretty sure a good number of customers are now choosing other options for flying which include carry-on bag in basic fares.

I agree the labor costs are rising, but it was time for Ryanair to make a move on that.
Last edited by a350lover on Mon Feb 04, 2019 10:33 am, edited 1 time in total.
 
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FlyRow
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Re: Ryanair post loss for last 3 months of year..

Mon Feb 04, 2019 10:33 am

Blerg wrote:
Could this be one of the reasons why they have cut Weeze and Eindhoven operations? I know they said it was due to labour issues but could it actually be about cutting losses where they can?


Chicken and egg, who came first.
FR want's to cut cost, so doens't want to use Dutch Labour laws but favourable other nations standards, Dutch Court / Unions say hell with that you base in the Netherlands >> FR cut's part of the opreations at EIN.
F70-F100-RJ85-RJ70-E190-319-320-321-733-734-735-737-738-752-753-763-764-772-744-380
 
SCQ83
Posts: 5213
Joined: Wed Oct 03, 2012 8:32 pm

Re: Ryanair post loss for last 3 months of year..

Mon Feb 04, 2019 10:38 am

There was a lot of excess capacity already in 2018, and with the EU economy heading for a major crash in 2019, this is just the start.
 
Someone83
Posts: 4269
Joined: Sun Sep 17, 2006 5:47 pm

Re: Ryanair post loss for last 3 months of year..

Mon Feb 04, 2019 10:43 am

factsonly wrote:
....., due to over-capacity in Europe and thus lower yields.


This is a [partly] self-inflicted wound....
 
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PatrickZ80
Posts: 3821
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Re: Ryanair post loss for last 3 months of year..

Mon Feb 04, 2019 5:30 pm

FlyRow wrote:
Blerg wrote:
Could this be one of the reasons why they have cut Weeze and Eindhoven operations? I know they said it was due to labour issues but could it actually be about cutting losses where they can?


Chicken and egg, who came first.
FR want's to cut cost, so doens't want to use Dutch Labour laws but favourable other nations standards, Dutch Court / Unions say hell with that you base in the Netherlands >> FR cut's part of the opreations at EIN.


And because they were forced to apply Dutch labour laws instead of Irish the Eindhoven base flipped from being profitable to beind loss-making. If they could have kept using Irish labour laws Eindhoven would probably still be a base. But they couldn't.

Ryanair does make a loss at the moment, but that's allright. They can handle it. Several other European airlines can't handle it and will disappear. That will the remaining airlines, including Ryanair, some room to breathe. They'll be profitable again in the future.
 
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Aisak
Posts: 841
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Re: Ryanair post loss for last 3 months of year..

Mon Feb 04, 2019 6:16 pm

PatrickZ80 wrote:
And because they were forced to apply Dutch labour laws instead of Irish the Eindhoven base flipped from being profitable to beind loss-making. If they could have kept using Irish labour laws Eindhoven would probably still be a base. But they couldn't.

We should really think about the hidden meaning of some sentences we write.
It’s so hard (and simple) to say that the EIN base simply made the company lose money because of the direct employee’s salaries. Profits in a simplistic way are just defined as revenues minus costs. So it’s not the cost side the only variable in the equation.
Complying with the law is not something a corporation can opt out...
So they just opted out of the territory with “so unfair and unbearable laws” against them and chose operate EIN from bases with “better” local laws (or with governments not enforcing them hard enough). After all, no one is forcing Ryanair to operate from EIN...or AT EIN.
That seems to be rule no.1 in current capitalism: take your production where it’s cheaper. And Ryanair has followed that motto for quite so time. The cheaper the better... at all cost :D
 
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FlyRow
Posts: 673
Joined: Mon Mar 21, 2016 10:05 pm

Re: Ryanair post loss for last 3 months of year..

Mon Feb 04, 2019 6:53 pm

Aisak wrote:
PatrickZ80 wrote:
And because they were forced to apply Dutch labour laws instead of Irish the Eindhoven base flipped from being profitable to beind loss-making. If they could have kept using Irish labour laws Eindhoven would probably still be a base. But they couldn't.

We should really think about the hidden meaning of some sentences we write.
It’s so hard (and simple) to say that the EIN base simply made the company lose money because of the direct employee’s salaries. Profits in a simplistic way are just defined as revenues minus costs. So it’s not the cost side the only variable in the equation.
Complying with the law is not something a corporation can opt out...
So they just opted out of the territory with “so unfair and unbearable laws” against them and chose operate EIN from bases with “better” local laws (or with governments not enforcing them hard enough). After all, no one is forcing Ryanair to operate from EIN...or AT EIN.
That seems to be rule no.1 in current capitalism: take your production where it’s cheaper. And Ryanair has followed that motto for quite so time. The cheaper the better... at all cost :D


Which in fact would be strange that EU-countries operate at different standards. It's the same with carbon-tax , it doesn't work if country a does it, but neighbour b doesn't . One policy in the EU would make things a lot fairer and would negate pointless moving of capacity in a race to the bottom.
F70-F100-RJ85-RJ70-E190-319-320-321-733-734-735-737-738-752-753-763-764-772-744-380
 
leghorn
Posts: 869
Joined: Sun Jan 22, 2017 9:13 am

Re: Ryanair post loss for last 3 months of year..

Mon Feb 04, 2019 8:52 pm

Someone83 wrote:
factsonly wrote:
....., due to over-capacity in Europe and thus lower yields.


This is a [partly] self-inflicted wound....

One man's quarterly loss is another man's product dumping in pursuit of a long term goal.
I understand what they are doing but so far they appear to have killed competitors more to the benefit of IAG, LH and AF/KLM than their own benefit.
 
marcelh
Posts: 641
Joined: Wed Jun 19, 2013 12:43 pm

Re: Ryanair post loss for last 3 months of year..

Mon Feb 04, 2019 10:01 pm

SCQ83 wrote:
There was a lot of excess capacity already in 2018, and with the EU economy heading for a major crash in 2019, this is just the start.

Major crash? Drama queen.......

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