Ryanair has released new data indicating its profit increased 11% to €1.29 billion in H1 of 2017. Traffic also grew 11%, to €72 million, thanks to a strong Easter and a 5% reduction in airfares, while revenue rose 7% to €4,425, net margin went up 1pt to €29%, basic EPS grew 16% to €1.07 and unit costs (including fuel savings) fell 5%.
Commenting on the above statistics, Ryanair’s Michael O’Leary said, "These strong H1 results reinforce the robust nature of Ryanair’s low fare, pan-European growth model, even during a period which suffered a material failure in our pilot rostering function in early September. Prior to this event, we were on track to deliver strong H1 results during which we opened 3 new bases and 80 new routes. We took delivery of 35 new B737’s in the first 6 months of 2017, we stimulated 11% traffic growth with 5% lower airfares, and achieved an industry record load factor of 97% in the peak summer months.
"Ancillary Revenue grew 14%. Customer spend rose 2% as more customers chose optional services such as reserved seats, priority boarding and car hire. H1 unit costs fell 5%, excluding fuel it was flat (but would have fallen 2% without the EU261 provision). Despite traffic growth of 11%, our fuel bill fell 3%. Most other cost headings were broadly flat on a per passenger basis, other than our 'Sales, Marketing & Other', which jumped 30% due to a one-off €25 million EU261 provision, as we quickly addressed the needs of affected customers in September to recover the rostering failure, and eliminate any risk of further cancellations.
"Our balance sheet remains strong. Operating activity in H1 generated over €935 milliom of net cash. We used this for net capex of €675 million, share buybacks of €639 million, and debt repayments of €200 million. Accordingly, net debt rose from €244 million at 31 March to €600 million at 30 September. We don’t plan any more near term buybacks as we work to finish the fiscal year with a broadly flat net debt/cash position."
