Ryanair posts big rise in 1/2 Year Profits

Sticking to the playbook. Well done the team over at FR.

The numbers of course are staggering. Well on the way to a 50 mil pax plus airline this year- the underlying numbers show some clear success in the strategy.

Revenues grew by 24% to €1.6bn (£1.1bn), which included ancillary revenues of €252m (£175.5m), up 54%. This meant that ancillaries accounted for 15.8% of total revenues, versus the airline’s target of 20%. This is the key to the long term success of FR. For a conventional airline this number is essentially zero as no additional revenues are booked in this manner. This only now shows how much this is worth and how successful Ryanair has been at pursuing the growth of the revenue base not based on RPMs/ASMs and CASMs.

We believe that leveraging the individual passenger as the core metric is the fundemental differentiator between the true LCC model and the legacy one. Any airline still clinging to their outdated metrics deserves to be shot.

Those of you who are regular readers - know am not a big fan of the Ryanair service but I totally buy into the model and am quite happy to put up with the poor service in exchange for a reliable timetable and a low price. This is the true credo.

Cheers

Timothy