Ryanair profits plunge, despite offering "better value, like Aldi"
It couldn't happen to a nicer man, or a better airline for that matter; Ryanair has reported annual losses of £155 million, and nailed it on fuel costs and a writedown on its stake in rivals Aer Lingus. That compares with profits of around £400 million for the previous year.
Passenger numbers rose by 15 per cent but any sniff of profit was wiped out by a 59 per cent increase in the fuel bill, to a whopping €1.2 billion. But good news for lucky passengers - the average fare dropped by eight per cent to just €40! Strangely, Ryanair don't mention all the additional charges they've piled on the fare price, including mandatory check-in fees.
Ryanair Sky Captain Michael O’Leary, said: “In this recessionary environment we intend to continue to offer European consumers, better value just like Aldi, Lidl, Ikea and McDonald's are doing in their respective industries."
Thing is, Sky Captain, when I read on the menu that a Big Mac is £1.99, I don't reach the front of the queue and pay £5.99. A GISM bed frame from Ikea with a £59 price tag doesn't cost £199 by the time I've slogged it to the tills on a boss-eyed trolley inadequate for the task. Price transparency, or lack thereof, is the reason so many consumers would rather set fire to their own hands than book with Ryanair. Nobody would really mind if they were told a flight cost €40, but when lured in on the promise of a €5 flight, folk feel like fighting.
It's a rum do when you compare yourself to Aldi and Lidl and lose out in the value stakes. Yet here we are, O'Leary. Here we are.