Michael O'Leary is winding down his racing operations "in order to spend more time with his family", says Alistair Osborne in The Times. But after Ryanair's latest results, you have to wonder if he'd have done better to give up the airline and keep the horses.
Ever since Ryanair's dispute with the pilots' union in September 2017, the airline has "been struggling to hit former heights"; the shares have halved from their peak.They slipped again earlythis week thanks to a 29%drop in full-year profits to €1.02bn after tax.
Ryanair's problem is that many of its costs, notably rising fuel prices, are "out of its hands", while it is beingforced to slash fares in orderto maintain growth, saysEd Cropley for Breakingviews. Still, ancillary revenue was the "one bright spot" as "sales of everything from food and drinks to reserved seats and priority baggage jumped 19% to €2.4bn, a third of all the airline's top line". Indeed, if Ryanair is able to replicate last year's "bumper" performance by flogging "ever more expensive on-board snacks", this could add another €455m to Ryanair's top line, "all but wiping out the budgeted rise in fuel prices".
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
It's not just Ryanair that is feeling the pinch, as easyJet is also struggling owing to intense competition and a public "increasingly looking to save every penny and cent", says Jim Armitage in the Evening Standard. The group lost £275m in its winter half,but it is working very hardto reduce costs, and "thisself-help will set [easyJet]up well for when times, eventually, improve".
-
Christmas at Chatsworth: review of The Cavendish Hotel at BaslowMoneyWeek Travel Matthew Partridge gets into the festive spirit at The Cavendish Hotel at Baslow and the Christmas market at Chatsworth
-
Tycoon Truong My Lan on death row over world’s biggest bank fraudProperty tycoon Truong My Lan has been found guilty of a corruption scandal that dwarfs Malaysia’s 1MDB fraud and Sam Bankman-Fried’s crypto scam
-
It’s time for Ryanair to grow upOpinion As a young upstart airline, a combative approach was just what Ryanair needed. Now it needs to mellow, says Matthew Lynn.
-
Ryanair loses altitudeFeatures Europe’s biggest budget airline will profit from rivals’ problems this winter. But it has also been making its own life difficult. Marina Gerner reports.
-
Low-cost flights hit air pocketFeatures A ferocious price war has killed off the weaklings in the airline sector. But the survivors are well placed to thrive. Chris Carter reports.
-
Ryanair: being nice pays offNews Shares in Ryanair have jumped following an overhaul of the airline's customer services.
-
Ryanair to go on the offensive to reverse a fall in profitsFeatures No-frills airline Ryanair has reported its first fall in profits for five years. But it’s hoping a charm offensive will persuade passengers to part with more of their money.
