Ryanair in 2015

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airazurxtror
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Re: Ryanair in 2015

Post by airazurxtror »

Ryanair reported half-year after tax profits of €1.1bn (£800m, $1.2bn), up 37%.
Ryanair's revenues rose by 14% to €4.04bn, an increase of €503m on the first half of last year.
The customer levels rose by 13%, up to 58.1 million, compared with the same period last year.

Chief executive Michael O'Leary said: "We are pleased to report this strong set of H1 results. We have enjoyed a bumper summer due to a very rare confluence of favourable events including stronger sterling, adverse weather in northern Europe, reasonably flat industry capacity and further savings on our unhedged fuel."

Ryanair said it expects current growth levels to continue in Ireland, UK, Spain, Italy, Portugal, Poland, Germany, and Denmark.

O'Leary said the plan was to pass on savings to customers "in the form of lower airfares particularly as we grow capacity quickly in major markets such as Belgium, Denmark, Germany, Ireland, Italy, Poland, Portugal, Spain and the UK in 2016".

http://www.ibtimes.co.uk/ryanair-profit ... ts-1526743
IF IT AIN'T BOEING, I'M NOT GOING.

airazurxtror
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Re: Ryanair in 2015

Post by airazurxtror »

RYANAIR BOSS MICHAEL O’Leary is hoping for a ‘price war’ with rival airlines over the traditionally quiet winter months.
O’Leary told Bloomberg Ryanair was ditching its previous strategy of grounding aircraft in winter and instead increase its routes and cutting prices.
“What’s going to drive our growth in the winter is we plan to lower fares,” he said.
We will keep them flat in the third quarter, which is our Christmas quarter, and then down 4% in the first quarter next year, at a time when most of the competition are either raising prices or withdrawing capacity from our markets.”
The airline forecast capacity would be up 22% in the three months after Christmas.
Ryanair had already locked in the current cheap fuel prices until 2017, which gave it the ability to lower fares another 10%, O’Leary said.
If anyone want to have a fare war in our markets just let us know and we’d be happy to meet you.”

Ryanair lifted its yearly passenger target to 105 million and predicted its net profits could reach €1.225 billion for the 12 months. Its long-term goal was to carry as many as 180 million travellers each year by 2024.

http://businessetc.thejournal.ie/ryanai ... 4-Nov2015/
IF IT AIN'T BOEING, I'M NOT GOING.

Inquirer
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Re: Ryanair in 2015

Post by Inquirer »

Clearly the lower commodity prices have a positive effect on the balance sheet of pretty much all airlines, as each in turn are posting ever improved results and outlooks in the wake of an enduring slump in oil prices.I think there are a few good years ahead of all airlines if they manage to lock in these current prices.


An interesting element which you haven't posted yet: average return fares for a short haul flight with ryanair now stand at well over 100 euro for a seat alone, up vs the previous reporting period once again. They certainly do talk a lot about a price war, but meanwhile the phenomenon of a narrowing fare gap between them and many of their direct competitors does thus continue.

airazurxtror
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Re: Ryanair in 2015

Post by airazurxtror »

Inquirer wrote: An interesting element which you haven't posted yet: average return fares for a short haul flight with ryanair now stand at well over 100 euro for a seat alone, up vs the previous reporting period once again. They certainly do talk a lot about a price war, but meanwhile the phenomenon of a narrowing fare gap between them and many of their direct competitors does thus continue.
I don't know about the general average return fare for Ryanair, but I can give my average Ryanair return fare in 2015 out of 19 trips, and it's 39,75 euros - the hightest being Athens at 73,64 euros and the lowest being Berlin at 15,28 euros (and all were day returns, which command a higher price on most traditional carriers).
IF IT AIN'T BOEING, I'M NOT GOING.

danieln
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Re: Ryanair in 2015

Post by danieln »

Inquirer wrote:

An interesting element which you haven't posted yet: average return fares for a short haul flight with ryanair now stand at well over 100 euro for a seat alone, up vs the previous reporting period once again. They certainly do talk a lot about a price war, but meanwhile the phenomenon of a narrowing fare gap between them and many of their direct competitors does thus continue.
And still carrying 105 million passengers per year. Maybe they are not so bad after all ;-)

sean1982
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Re: Ryanair in 2015

Post by sean1982 »

The "driver seat" that some awarded to easyJet all the time has been long passed back to Ryanair. Customer appreciation is growing and business analysts are calling Ryanair's performance "exceptional" and "a goal for every airline in europe"

http://www.bbc.com/news/business-34696773

Stij
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Re: Ryanair in 2015

Post by Stij »

A post has been edited!

Please play the ball and not the player!!!

Cheers,

Stij

teddybAIR
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Re: Ryanair in 2015

Post by teddybAIR »

airazurxtror wrote:Ryanair reported half-year after tax profits of €1.1bn (£800m, $1.2bn), up 37%.
Ryanair's revenues rose by 14% to €4.04bn, an increase of €503m on the first half of last year.
The customer levels rose by 13%, up to 58.1 million, compared with the same period last year.
4.04bn revenues for 58,1mln pax carried gives you an average revenue of 69,5€ per passenger flown regardless of the source of revenue. Period.
But good performance to extract a 1.1bn€ profit from that revenue!

Inquirer
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Re: Ryanair in 2015

Post by Inquirer »

danieln wrote:
Inquirer wrote:

An interesting element which you haven't posted yet: average return fares for a short haul flight with ryanair now stand at well over 100 euro for a seat alone, up vs the previous reporting period once again. They certainly do talk a lot about a price war, but meanwhile the phenomenon of a narrowing fare gap between them and many of their direct competitors does thus continue.
And still carrying 105 million passengers per year. Maybe they are not so bad after all ;-)
You know, the customer is always right, so I will be the last one to call them bad.
Any airline which manages to convince people to fly with them and to have them come back again, all while making a healthy profit from doing that is a very good airline, period.
Here too, the product connects well to the market and so ryanair rightfully does not refrain from increasing the price of their tickets in response season after season: that's a normal business practice and ryanair is no charitable organisation, so they are no exception to that rule either.

Of course, this goes against the public image as Ultra Low Cost (a lable that was even created pretty much by them a couple of years ago in order to set them apart from the 'normal' Low Costs), an image they absolutely want to uphold as it is their sole product differentiator: one doesn't fly ryanair for style, one doesn't fly them for convenience, one doesn't fly them for comfort; one flies them for price.

Yet at 105 euro for a return ticket on average, it certainly is inconvenient but not less true to say the 'ultra' has somehow disappreared from their DNA and even the 'Low' is being written in pretty small print these days. Several people here have made the same remark in the past already and it's only logical: a better product comes with a better price, in part to offset the extra costs, in part to offset the extra efforts.

But the old ryanair needs to live on too because of the odd choice to offer completely different products under one singl ebrand, or it risks leaving a gap for new and uncompromising ultra's like for instance Wizzair, hence the constant beating of the drum by its CEO over price wars etc.

Over winter I'd expect prices to drop somewhat indeed, but according to ryanair, this will be limited to low single digit figures only (thus reverting to the price levels of roughly a year ago or so): calling that a price war in an environment where oil has halved in price is lacking substance, but it does get picked up by the press, and so it gets in the mind of people, which is what it's all about of course. No business wants to sell its product for cheaper than they really have to, yet they all want people to believe to be constantly selling at prices which can not possibly be any lower than they are: be it an airline, a tour operator (think early discounts vs last minutes) outlet stores (rock bottom prices, yet able to give discounts during sales periods?) or whatever other exemple you can think of. ;)

Inquirer
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Re: Ryanair in 2015

Post by Inquirer »

teddybAIR wrote:
airazurxtror wrote:Ryanair reported half-year after tax profits of €1.1bn (£800m, $1.2bn), up 37%.
Ryanair's revenues rose by 14% to €4.04bn, an increase of €503m on the first half of last year.
The customer levels rose by 13%, up to 58.1 million, compared with the same period last year.
4.04bn revenues for 58,1mln pax carried gives you an average revenue of 69,5€ per passenger flown regardless of the source of revenue. Period.
But good performance to extract a 1.1bn€ profit from that revenue!
As per their own regulatory information, the average ticket price alone is slightly more than 52 euro, so 105 euro for a return ticket. But indeed the average total revenue per passenger on a return trip is 140 euro even.

As said before: a return ticket sale price of 105 euro and a trip cost to the customer of no less than 140 euro on average even, is hardly ultra low cost any longer, if you think about it for a second.

The problem is that as they keep working their product up in order to outgrow the niche they were locked in to, their sole product differentiator (i.e. the price of a flight) will come under even more increased pressure, exactly as predicted by many people btw, which is why they should have created a seperate brand to target the midrange of the market, rather than do everything under one brand: the problem was of course they were caught off guard by competitors (dixit their own CEO at the 2014 general shareholders meeting), wasted too much time on getting Aer LIngus onboard as their premium A brand thereafter and in the end lacked the time to do it the proper way: it had to be done quickly instead to avoid immediate disaster. Tactically they did it well, but a strategic brand overhaul is still due, as it's clear the future of aviation is going to be one of multi-branded groups anyway: ryanair must morph into a holding with multiple brands, or they will be absorbed into a much bigger holding themselves, Whether they have 50, 100, 150 or 200M passengers is irrelevant really: their annual total turnover is so small compared to say IAG or Lufthansa, they will be seated at the short end of the negotiating table if and when the consolidation happens, so they MUST diversify asap.

Stij
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Re: Ryanair in 2015

Post by Stij »

teddybAIR wrote:
4.04bn revenues for 58,1mln pax carried gives you an average revenue of 69,5€ per passenger flown regardless of the source of revenue. Period.
But good performance to extract a 1.1bn€ profit from that revenue!

If I'm right, FR's fiscal year starts April 1st, so June - September are included.so the average fare in the second half of their fiscal year should be lower.

Personally, I looked it up in the deleted items, have an average fare of 40€, based on 29 flights for myself, my family and my collaborators. So, an average of 80€ per round trip. However, I didn't fly in July / August... Tickets either booked way in advance or last minute.

So, it all sounds plausible.

Cheers,

Stij

Stij
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Re: Ryanair in 2015

Post by Stij »

Inquirer wrote:As said before: a return ticket sale price of 105 euro and a trip cost to the customer of no less than 140 euro on average even, is hardly ultra low cost any longer, if you think about it for a second.
But who is ULCC then?

Wizzair has an average revenue of 71,36€ per passenger per flight...
http://cdn.wizzair.com/static/downloads ... esults.pdf

But we should pay attention as well not to compare apples with oranges

I believe FR's average flight has become longer as well over the years, so the average ticket price can rise as well without people thinking their ticket price went up...

Cheers,

Stij

Inquirer
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Re: Ryanair in 2015

Post by Inquirer »

Has an ultra low cost actually ever existed?
Its a valid question to which I do not have an answer, but I do know the term ultra low cost was minted by ryanair to set themselves apart from other low cost airlines. Its increasingly difficult to maintain they are still very different however, which I know on one hand is the aim as it provides them with all the growth, but on the other hand is a strategic problem too, because they need to keep the traditional customer base.
A vocal CEO can go a long way to paint over this difficiency and he's doing his job very good, but he can't do miracles either: a multi brand approach is what is strategically needed in the long run and he knows very well too, hence the failed push for Aer Lingus. I expect a separate brand to come back on the table (and a split up of the operations) in a couple of years.

airazurxtror
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Re: Ryanair in 2015

Post by airazurxtror »

Inquirer wrote: Yet at 105 euro for a return ticket on average, it certainly is inconvenient but not less true to say the 'ultra' has somehow disappreared from their DNA and even the 'Low' is being written in pretty small print these days.
It's all a matter of comparing : what is the average price of a return ticket on easyJet, for instance ? I bet it's appreciably higher.
And on Brussels Airlines, what is the average fare, even considering only the cheapest category, which is Check and go, I think. ?

Ryanair has been an ULCC, a few years ago; some flights were sold for 1 or 2 euros, or even less; my best buy was a Charleroi-Budapest return for 70 centimes in january 2013 ...

But even at present, one can find Ryanair flights at 10 euros, which is not that expensive, is it ?
IF IT AIN'T BOEING, I'M NOT GOING.

Stij
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Re: Ryanair in 2015

Post by Stij »

airazurxtror wrote:Ryanair has been an ULCC, a few years ago; some flights were sold for 1 or 2 euros, or even less; my best buy was a Charleroi-Budapest return for 70 centimes in january 2013 ...

But even at present, one can find Ryanair flights at 10 euros, which is not that expensive, is it ?
Keep in mind there's a difference between "Minimum" and "Average". No family even flew on FR in July to AGP for 0,70€ a person.

Cheers,

Stij

Inquirer
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Re: Ryanair in 2015

Post by Inquirer »

airazurxtror wrote:
Inquirer wrote: Yet at 105 euro for a return ticket on average, it certainly is inconvenient but not less true to say the 'ultra' has somehow disappreared from their DNA and even the 'Low' is being written in pretty small print these days.
It's all a matter of comparing : what is the average price of a return ticket on easyJet, for instance ? I bet it's appreciably higher.
And on Brussels Airlines, what is the average fare, even considering only the cheapest category, which is Check and go, I think. ?
The binary question is not which is the absolute cheapest to the cent, but whether the deminishing relative price difference is still going to be a driving force in future. Remember price is their sole differentiator, so they really need to stand out on this, yet they are doing so less and less because of a product improvement aimed to grow in new market segments, yet which is completely lost on their traditional customer base, which I think also includes you.
If next year they offer a new set of features you dont need as ULCC custumer and make you pay another 10 euro more for them through ever increasing average ticket prices, are you going to be really happy with that? Probably not. Will you still fly them? Probably yes. Unless you find a better deal elsewhere.
And that's my point exactly: a few improvements more, and somebody else can start to undercut them in their traditional markets. Look at how close wizzair has creeped, despite being only a fraction of their size.
airazurxtror wrote: Ryanair has been an ULCC, a few years ago; some flights were sold for 1 or 2 euros, or even less; my best buy was a Charleroi-Budapest return for 70 centimes in january 2013 ...
And despite the imploded fuel prices, one can't find those offers any longer for next winter.
Never wondered why? As I have explained, it's logical for them to increase prices in the wake of a commercial reorientation, but equally logical it means they risk vacating their traditional market segment for others to come and capture it: wizzair must be rubbing their hands each time ryanair rolls out another cost increasing product improvement, I am sure : I dont know if you've noticed, but costs have actually increased at ryanair, if you take out the effect of the lower fuel prices (their regulatory statement terms it as 'flat', but it actually increased a little bit as per the accompanying spreadsheet): the point is they arent able to take benefit of the much higher volumes they enjoy to cut costs further, which could become a worrying trend and it definitely explains why the CEO is so vocal on price wars etc.: he needs to keep others off his traditional markets as much as he can by strong words, because the figures don't look so compelling any longer.

sean1982
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Re: Ryanair in 2015

Post by sean1982 »

Saying that passengers ONLY fly FR for the low price is zeer kort door de bocht, as usual.

Sure, price is an important factor, but the comfort gap is closing quickly and a lot of people actually like FR's "middle of nowhere" destinations which they can fly directly without connecting through a hub first, saving them loads of time :) . Turns out that flying to the middle of nowhere is quite popular, who would have thought.

Stij
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Re: Ryanair in 2015

Post by Stij »

sean1982 wrote:Saying that passengers ONLY fly FR for the low price is zeer kort door de bocht, as usual.

Sure, price is an important factor, but the comfort gap is closing quickly and a lot of people actually like FR's "middle of nowhere" destinations which they can fly directly without connecting through a hub first, saving them loads of time :) . Turns out that flying to the middle of nowhere is quite popular, who would have thought.
Good afternoon Sean,

Price is the no. 1 reason people fly your company. Yes, the gap has closed considerably, but the network carriers service level remains higher than FR's and that isn't even a problem as long as you stay cheaper as them.

I even dare to state that if FR's prices wouldn't be this low, a lot of people wouldn't be flying at all or at least a lot less.

About routes and schedules, a (double) daily frequency would be really nice if you really want to to be an alternative for the network carriers.

Example: to EDI I keep on flying SN (and pay a lot for it) because I can't make a day trip nor a 1 night trip with your company (I believe as from the summer 2016 schedule it will be possible on some days.

To the Veneto I can make day returns (albeit not every day and not anymore as from the summer season) and 1 night trips (with excellent times as from summer 2016 schedule) so I fly your company.

Cheers,

Stij

airazurxtror
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Re: Ryanair in 2015

Post by airazurxtror »

I am sorry I asked a question whose answer is readily available in
http://investor.ryanair.com/wp-content/ ... tation.pdf

Average fares :
Ryanair* €47
Wizz* €60
Norwegian €81
easyJet €84
Air Berlin €120
Lufthansa €230
IAG €231
Air France / KLM €253
Avg Competitor Fare €151
Source: Latest Annual Reports, *RYR & WIZ ave fare includes 1st checked bag

Also of interest in the same report :

Competitors Cut Capacity on RYR routes
easyJet ─ Close: FCO base, CGN-LGW, MAD-SXF, RAK-STN ─ Cut freq: DTM-LTN, MXP-RAK, LGW-SCQ, LGW-TLL
Alitalia ─ Close: FCO-KRK, LIN-WAW ─ Cut freq: FCO-OTP, FCO-BUD, LIN-CAG, LIN-AHO
Aer Lingus ─ Close: DUB-CPH ─ Cut freq: DUB-AMS, DUB-BLQ, DUB-MXP
Norwegian ─ Close: LGW-WAW, LGW-TRF, CGN-ALC, CGN-LPA, HAM-MAD
Vueling ─ Close: FCO-RAK, FCO-BRI, FCO-BDS, BRU-VCE
Brussels A ─ Cut freq: BRU-BLQ, BRU-FCO, BRU-RIX, BRU-WAW
Iberia ─ Cut freq: MAD-BRU, MAD-DUB
SAS ─ Cut freq: GOT-STN
IF IT AIN'T BOEING, I'M NOT GOING.

sean1982
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Re: Ryanair in 2015

Post by sean1982 »

Stij wrote:
sean1982 wrote:Saying that passengers ONLY fly FR for the low price is zeer kort door de bocht, as usual.

Sure, price is an important factor, but the comfort gap is closing quickly and a lot of people actually like FR's "middle of nowhere" destinations which they can fly directly without connecting through a hub first, saving them loads of time :) . Turns out that flying to the middle of nowhere is quite popular, who would have thought.
Good afternoon Sean,

Price is the no. 1 reason people fly your company. Yes, the gap has closed considerably, but the network carriers service level remains higher than FR's and that isn't even a problem as long as you stay cheaper as them.

I even dare to state that if FR's prices wouldn't be this low, a lot of people wouldn't be flying at all or at least a lot less.

About routes and schedules, a (double) daily frequency would be really nice if you really want to to be an alternative for the network carriers.

Example: to EDI I keep on flying SN (and pay a lot for it) because I can't make a day trip nor a 1 night trip with your company (I believe as from the summer 2016 schedule it will be possible on some days.

To the Veneto I can make day returns (albeit not every day and not anymore as from the summer season) and 1 night trips (with excellent times as from summer 2016 schedule) so I fly your company.

Cheers,

Stij
That might be the case for you Stij, but im not making this up. These are actual reasons that customers give for choosing FR: smaller difference in service levels with
other airlines and direct flights to where they want to go.

(Its not my company btw :p I wish :D)

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