The nice side of Ryanair begins to boost traffic
RYANAIR said its customer services revamp was already impressing passengers, pushing its shares higher yesterday despite a pre-tax loss of €35m (£29m) in the final three months of 2013.
The low-cost carrier cut its average fare by nine per cent in the quarter to try and shore up its sales. Demand has now “stopped falling, it’s stabilised”, said deputy chief executive Michael Cawley.
Ryanair followed its smaller rival EasyJet into allocated seating and a more forgiving stance on lost boarding passes last year in the wake of two profit warnings.
Yesterday, the firm repeated its profit forecast in the year to the end of March at between €500m and €520m.
Passenger numbers in the quarter were up six per cent at 18.3m, though discounted tickets meant revenues were flat at €964m.
Bookings into the summer “are running significantly ahead of last year, albeit at weaker yields”, the firm said in a statement yesterday.
“This business needs to be changed, it needs to be constantly changed,” Cawley told reporters. “Of course we should have done it earlier but we’ve done it and we will be better than anyone in a few months.”
But when asked if Ryanair is becoming part of the airline establishment, Cawley replied: “Perish the thought… Ryanair will always be the lowest cost operator.”
Shares in the Dublin-listed carrier closed up more than six per cent at €6.73.