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Ryanair FY19 Profit, Traffic Up; Fares Down; Sees Broadly Flat Profit In FY20

Ryanair Holdings plc (RYA.L,RYAAY) reported Monday that its fiscal 2019 profit before tax was 948.1 million euros, down from 1.61 billion euros last year. Profit for the year attributable to equity holders of parent fell to 885.0 million euros from 1.45 billion euros a year ago. Earnings per share were 0.7665 euro, compared to 1.2045 euros last year.

The latest results included exceptional year 1 start-up loss of 139.5 million euros related to the purchase of Lauda, which was completed in December.

Excluding Lauda, pre-tax profit fell 30 percent to 1.13 billion euros, and attributable profit fell 29 percent to 1.02 billion euros.

Total operating revenues grew to 7.70 billion euros from last year's 7.15 billion euros. Excluding Lauda, revenues increased 6 percent to 7.56 billion euros.

Group traffic, including Lauda, was 142 million guests, up 9 percent from last year. Excluding Lauda, traffic increased 7 percent to 139 million.

Meanwhile, short-haul capacity growth and the absence of Easter in the fourth quarter led to a 6 percent fare decline to 37 euros, the company noted.

Load Factor increased 1 percent.

Looking ahead, for fiscal 2020, for the consolidated Ryanair Group, the company said it remains cautious on pricing. Traffic will grow by 8 percent to 153 million. Assuming revenue per pax or RPP growth of 3 percent, the company projects broadly flat Group profits. This will range from 750 million euros if RPP rises 2 percent, up to 950 million euros if RPP rises 4 percent.

Further, the company said its Board approved 700 million euros of share buyback.

The company is also in advanced negotiations to sell 10 of its oldest B737s for over $170 million before the end of March 2020.

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