DUBLIN (Reuters) – Ryanair ( RYA.I ) on Monday hopes to finish their remaining workout outreach at Christmas, indicating a…
DUBLIN (Reuters) – Ryanair ( RYA.I ) on Monday hopes to finish their remaining workout outreach at Christmas, indicating a possible end to damage flight disruptions that have drawn on their shares.
PHOTO PHOTO: A Ryanair Boeing 737-800 Flight Taxis at Lisbon Airport, Portugal, September 27, 201
8. REUTERS / Rafael Marchante / Filfoto
The Irish low cost carrier, Europe’s largest, also said it may need to further reduce its capacity in winter due to high oil costs and intensive competition, although these factors helped to solve their difficult industrial relations.
“Given the negative environment out there for the airlines and the number of job losses reported in recent weeks, both by pilots and cabin crew, there is a much more sensible way to use common sense that the unions take” Michael O & # 39; Leary said in a video presentation.
Ryanair’s shares rose by 3.7 percent at 0755 GMT, despite reporting a 7 percent profit during the most important April-September period due to high fuel costs, excess capacity and damage to bookings caused by a wave of strikes.
It was better than 9 percent fall forecast of an analyst analyst in the wake of a October 1 profit warning.
Overcapacity is likely to continue to weigh average ticket prices in winter unless there is a major failure of a rival, but the failure of several small airlines over the last few weeks is to concentrate the staff, “Leary said.
Ryanair only needs to secure an agreement with two major unions, in Belgium and Germany, and is “hoping to enter into an agreement with them this Christmas,” he added.
The airline, which previously threatened cuts to growth during negotiations with trade unions, has fought with labor relations, as it bowed to pressure to recognize unions for the first time in December last year.
Ryanair lowered its forecast for full-year earnings by 12 percent three weeks ago and warned that worse could follow if a new wave of pilot and cabin crew across Europe continues to hit traffic and bookings.
Oil price increases or further fall in prices may force Ryanair to add the 1 percent capacity announced together with a profit warning on October 1st.
“If oil remains at or above $ 85 a barrel and ticket prices are under pressure, it would probably be the reasonable thing to do to take a look at the capacity,” said Neil Sorohan, CFO.
Ryanair, who does most of the profits in the summer, reported a profit of 1.2 billion euros (1.38 billion) for six months to 30 September. It repeated its full-year forecast of 1.1 billion euros and 1.2 billion euros.
The would be a 17-24 percent drop from the record 1.45 billion euros after tax in its last fiscal year.
An investigation of more than 10 analysts of Ryanair before the results found an average forecast of 1.127 billion euros for the full year and 1.175 billion for the six months to sept 30.
Reporting of Conor Humphries; Editing of Amrutha Gayathri and Alexander Smith
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