AFP, London :
Ireland’s troubled Ryanair said Monday that quarterly net profits rose 12 percent despite a cancellations crisis, but warned Britain was under-estimating the risk of “serious disruption” to flights following Brexit.
Profit after taxation increased to 106 million euros ($132 million) in the group’s third quarter or three months to December from a year earlier, the Dublin-based carrier said in a statement.
Passenger numbers grew six percent to 30.4 million people despite the cancellations fiasco.
In another boost, the group forecast passenger traffic would climb eight percent to 130 million people for the full year which ends in March 2018. That was upgraded from previous guidance of 129 million.
And Ryanair also announced a 750-million-euro share buyback which will begin this month.
“We are pleased to report this 12-percent increase in profits during a very challenging third quarter,” said chief executive Michael O’Leary.
The outspoken boss acknowledged “our pilot rostering failure in September”.
Ryanair suffered a troubled end to 2017, being forced to cancel 20,000 flights through to March this year, mainly because of botched holiday scheduling for pilots.
The results on Monday came one week after Ryanair signed an agreement to recognise the British Airline Pilots Association (BALPA), reversing its historic hostility towards trade unions.
The carrier, which suffered major turbulence in recent months from aggrieved staff, announced in January that its UK-based pilots had accepted pay increases of up to 20 percent.
As a result, staffing costs are set to jump by an extra 45 million euros this year.
IRELAND-AVIATION-EARNINGS-BUSINESS-LEAD 2 LAST LONDON
“It became clear in December that a majority of pilots wanted to be represented by unions,” O’Leary said.
“In keeping with our policy to recognise unions when the majority of our people wanted it, we have met pilot unions in Ireland, UK, Spain, Germany, Italy, Portugal, Belgium and France to discuss how we can work with them on behalf of our people.
“We have successfully concluded our first recognition agreement with BALPA in the UK, a market which accounts for over 25 percent of our pilots.”
He also admitted that union recognition “may add some complexity to our business and may cause short-term disruptions and negative PR”.
Ireland’s troubled Ryanair said Monday that quarterly net profits rose 12 percent despite a cancellations crisis, but warned Britain was under-estimating the risk of “serious disruption” to flights following Brexit.
Profit after taxation increased to 106 million euros ($132 million) in the group’s third quarter or three months to December from a year earlier, the Dublin-based carrier said in a statement.
Passenger numbers grew six percent to 30.4 million people despite the cancellations fiasco.
In another boost, the group forecast passenger traffic would climb eight percent to 130 million people for the full year which ends in March 2018. That was upgraded from previous guidance of 129 million.
And Ryanair also announced a 750-million-euro share buyback which will begin this month.
“We are pleased to report this 12-percent increase in profits during a very challenging third quarter,” said chief executive Michael O’Leary.
The outspoken boss acknowledged “our pilot rostering failure in September”.
Ryanair suffered a troubled end to 2017, being forced to cancel 20,000 flights through to March this year, mainly because of botched holiday scheduling for pilots.
The results on Monday came one week after Ryanair signed an agreement to recognise the British Airline Pilots Association (BALPA), reversing its historic hostility towards trade unions.
The carrier, which suffered major turbulence in recent months from aggrieved staff, announced in January that its UK-based pilots had accepted pay increases of up to 20 percent.
As a result, staffing costs are set to jump by an extra 45 million euros this year.
IRELAND-AVIATION-EARNINGS-BUSINESS-LEAD 2 LAST LONDON
“It became clear in December that a majority of pilots wanted to be represented by unions,” O’Leary said.
“In keeping with our policy to recognise unions when the majority of our people wanted it, we have met pilot unions in Ireland, UK, Spain, Germany, Italy, Portugal, Belgium and France to discuss how we can work with them on behalf of our people.
“We have successfully concluded our first recognition agreement with BALPA in the UK, a market which accounts for over 25 percent of our pilots.”
He also admitted that union recognition “may add some complexity to our business and may cause short-term disruptions and negative PR”.
