Tuesday, 31 July 2012

Another Stellar Ryanair Performance ©


Ryanair continues to deliver stellar profitability in a very tough environment while competitors struggle to restore profitability in the European short-haul market, announcing a Q1 operating profit of €132 million and net profit of €99 million down 29% vs. 2011 on revenues of €1.284 Billion carrying 22.5 million passengers up 6% with a load factor of 82% down 1% with cash reserves of €3.808 billion.

The Ryanair CEO Michael O’Leary stated "Ryanair continues to grow its traffic across Europe while maintaining the lowest unit costs in the airline industry, and generating healthy profits as evidenced by the 8% after tax margin achieved in the first quarter, We continue to see significant opportunities to grow across Europe as many airports aggressively compete to attract Ryanair’s traffic growth".

The carrier’s ancillary revenues continue to grow strongly up 15% to €285.9 million in the long-term ancillary revenue is expected to account for 20% of total revenues, however Ryanair like other carriers is not immune from high fuel costs which are a drag on costs/profitability in Q1 it’s fuel costs increased by 27% to €543.8 million now accounting for 47% of total operating costs versus 43% in 2011.

On the Conference call the CEO signalled the situation is very fluid regarding new bases/routes as discussions with airports and governments continue , and expects the winter scheduled to be bedded down by late September/Early October, however the airline flagged further expansion  for Budapest & Warsaw Modlin this winter.  

The airline will take delivery of 11 new Boeing 737-800s in quarter three and four completing the delivery programme and stated in Q1 it increased the net leased fleet from 51 to 55 aircraft and returned four aircraft to lessors.  

The Ryanair CEO Michael O’Leary stated the on-going recession and high fuel costs will continue the consolidation process in Europe, thus creating new opportunities for Ryanair as was case last winter following the collapse of Malev Airlines and Spanair with available aircraft it's positioned to seize opportunities as they arise in an ever changing environment.

Irish Aviation Research Institute © 31st July 2012

Aer Lingus and Etihad Airways Announce new partnership ©

Aer Lingus and Etihad Airways yesterday (Monday 30th July 2012) announced a new code-share and interline agreement which will come into effect from the third quarter leveraging the natural strengths of their perspective networks in Dublin and Abu Dhabi.

Etihad Airways operates 10 flights a week from Abu Dhabi to Dublin using Airbus A330-200s and has carried more than 817,000 passengers between the two capitals since it began flying the route in July, 2007. Aer Lingus and Etihad Airways use terminal 2 at Dublin Airport.

Aer Lingus become the 36th partnership carrier with Etihad Airways following the airline taking a 2.987% stake in Aer Lingus. Interestingly both carriers have a partnership with Jetblue Airways in New York JFK where Aer Lingus will switch terminals in early 2013.

The partnership will see Etihad Airways will place its “EY” code on Aer Lingus flights between Dublin, Manchester and London Heathrow, and destinations in Ireland, the British Isles, the Channel Islands, Portugal, the Netherlands and the US.

Aer Lingus will place its “EI” code on Etihad Airways flights between Abu Dhabi and Dublin, and have full access to flights across the network beyond Abu Dhabi, to points including Australia, Asia-Pacific, the Indian Subcontinent and the Middle East, thus gaining access to high growth market praticulary in China and India
The Etihad Airways President & CEO stated  “We are delighted to announce this new codeshare agreement with Aer Lingus which will provide Etihad Airways’ customers with new travel options and flight connections to Ireland, the UK, continental Europe, and across the Atlantic to Boston and New York".

The Aer Lingus CEO Christoph Mueller stated "Today's announcement supports Aer Lingus’ strategy to provide greater access and choice to our customers. We are delighted to welcome Etihad Airways on board as a codeshare partner.”

Going forward the carriers continue to discuss additional commercial and cost opportunities to develop a closer working relationship in areas such as joint procurement.

Irish Aviation Research Institute © 31st July 2012