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You can find the current article at its original source at http://www.theguardian.com/business/2014/dec/04/ryanair-passenger-profit-forecasts-bumper-november
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Ryanair upgrades passenger and profit forecasts after bumper November | Ryanair upgrades passenger and profit forecasts after bumper November |
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Ryanair shares soared after it reported booming business and bumped up its annual profit forecast for the second time within a month, as the budget airline reaps the benefit of its more customer-friendly approach. | |
The carrier credited its “always getting better” strategy for a 22% rise in customer numbers to 6.35 million in November, the first month of its expanded winter schedule, traditionally a quieter period. In the 12 months to November, passenger numbers rose 5% to 85.4m. Ryanair now expects just over 90 million customers to travel with it over the year, rather than 89 million. | |
It also flew fuller planes last month, with its “load factor” – which measures the percentage of seats filled by passengers – up 7% to 88%. Ryanair shares jumped 9% to €9.52 on the news. | It also flew fuller planes last month, with its “load factor” – which measures the percentage of seats filled by passengers – up 7% to 88%. Ryanair shares jumped 9% to €9.52 on the news. |
Ryanair boss Michael O’Leary declared last month that the new approach was “working like a dream”, after the carrier decided in late 2013 to transform its customer service and stop “unnecessarily pissing people off”. Ryanair has scrapped a lot of unpopular policies, allowing more carry-on baggage, allocated seating and cutting punitive charges. Complaints to Ryanair were down 40% to 80,000 letters a year, O’Leary said last month. | Ryanair boss Michael O’Leary declared last month that the new approach was “working like a dream”, after the carrier decided in late 2013 to transform its customer service and stop “unnecessarily pissing people off”. Ryanair has scrapped a lot of unpopular policies, allowing more carry-on baggage, allocated seating and cutting punitive charges. Complaints to Ryanair were down 40% to 80,000 letters a year, O’Leary said last month. |
Ryanair raised its after-tax profit forecast for this year to €810m (£636m) to €830m, from last month’s estimate of €750m to €770m, which was also an upgrade. This compares with last year’s profits of €523m. In the first half of this year, it made €795m. | |
The company said it had beaten its load factor targets across a number of destinations where it is offering business class flights in competition with longer established airlines. It launched a number of new city pair routes to appeal to business travellers, for example from Warsaw to Gdansk in Poland. | The company said it had beaten its load factor targets across a number of destinations where it is offering business class flights in competition with longer established airlines. It launched a number of new city pair routes to appeal to business travellers, for example from Warsaw to Gdansk in Poland. |
The carrier ordered another 200 aircraft in the last six months with a long-term goal of boosting passenger numbers to 150 million by the middle of the next decade. | The carrier ordered another 200 aircraft in the last six months with a long-term goal of boosting passenger numbers to 150 million by the middle of the next decade. |
Ryanair tends to be cautious with its profit forecasts, and Liberum analyst Gerald Khoo said he would not rule out a further improvement. | |
“It remains to be seen to what degree the stronger short-term performance represents faster progress towards the same long-term outcome, or an improved outlook across the board. Ryanair is rapidly closing in on easyJet’s load factors (about 90%) and the rate of improvement is likely to moderate.” |