Ryanair profits plunge, despite offering "better value, like Aldi"

2 June 2009

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.

TOPICS:   High Street News

12 comments

  • Mike H.
    You could say Ryanair is a little like Aldi, "You want a bag for all that Quixo, Pomms and Wankers crisps mate? That'll be 3p/bag please"
  • Carlz
    True. True.
  • Boss A.
    RyanAir have given us the idea of charging for our trolleys (£5 per trolley, booked in advance or £10 on the day), £1 per old cardboard box to package your items in and £2 to access the regular checkout queue, or £5 for the premium checkout, where you are guaranteed less than 2 minutes waiting time. With a £10 extra charge if you do not pre-book your place in either queue.
  • Dave T.
    Buy a Big Mac from BA for £100 or one from Ryanair for £1.99 but actually get charged £5.99 ---mmmm let me see BA every time NOT Will people FFS stop complaining and book with other airlines if not happy with Ryanair.
  • Jeffrey
    Dave T - as ironically DUMB as your comment is, thats what people are doing. Duh.
  • Dave T.
    Jeffrey - you must be thick then - most normal folk know that its going to be £5.99
  • Nexy
    Jeffrey, really? Given that in the post it clearly says "Passenger numbers rose by 15 per cent", people are booking elsewhere? Or are they merely ceasing to complain (despite the whole post being one giant moan about everyone's least favourite budget airline)? While Dave T demonstrated all the comedic timing of Borat with his NOT joke, he makes a valid point.
  • scribbles
    But when you buy your BA burger, you don't get to the checkout and get told you have to eat it a 3am the next day
  • Tizer
    You helmets - we all know Ryan Air provide good value for money!
  • Xp3
    'most normal folk know that its going to be £5.99' - Now this is only assumption... heh?!? If the price's got add-ons, you won't know the exact price till you pay for it (sometimes not even then)! Point is that prices should be transparent and that's the whole point. I don't understand how these airlines gets away with advertising like this.
  • Ryanair B.
    [...] Two Ryanair stories in one day is enough to drive anyone to the brink of drink, but we thought you might like to know that Sky Captain Michael O’Leary has revived the idea of charging passengers to use the toilet on his planes within two years. [...]
  • jsoap
    If you ask for a big mac, the assistant then asks if you want fries and coke, which bumps the price up. Personally I'd happier to have the choice, rather than be charged for the coke and fries that I don't want. Worth noting that the online check in charge is displayed on the breakdown of the flight costs, when you select a flight. So if a flight is advertised as £10 no taxes, the fare is displayed as £5 and online check in as £5. Its not hidden.

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