29 Jul 2019
Posted in Consumer
Ryanair profits fell 21% in Q1, ongoing staff disputes must be resolved to avoid the same in Q2
Following the release of Ryanair’s Q1 2019 results, Johanna Bonhill-Smith, Travel & Tourism Analyst at GlobalData, a leading data and analytics company, offers her view:
“While Brexit uncertainty and the grounding of the Boeing 737 Max contributed to the 21% fall of the company’s profits in Q1, ongoing issues within the company workforce are actually the greatest threat to its Q2 results.
“Ryanair needs staff support now more than ever and the company is one of the worst affected with cabin crew strikes and pilots under the British Airline Pilots’ Association (BALPA) potentially striking in August across the UK and Ireland during peak summer season.
“Ryanair expects profits to already be down by 6% in H1 2019, but this would require a very strong Q2 performance. The airline will have also banked on the peak summer season as a profit generator, but strikes threaten these plans.
“To reduce further loss, there is an urgent need for the airline to collaborate with BALPA and other relevant unions to find a resolution swiftly. There could not be a more crucial time for the airline to have the backing of its workforce.”