Ryanair annual passenger growth was slowest since 2014


DUBLIN: Ryanair Holdings Plc’s passenger tally grew at the slowest annual pace since 2014 after Europe’s biggest discount carrier cancelled thousands of flights to cope with a staffing crunch among pilots.

The 2017 customer count rose by 10% to 129 million, Ryanair said in a statement Wednesday, while the December figure advanced only 3%, the worst performance since a 4% decline reported in March 2014.

Ryanair scrapped 2,100 flights through the end of October as it battled with a staff-rostering foul up, before cancelling another 18,000 services stretching into the start of next summer.

Since then, Chief Executive Officer Michael O’Leary has been forced to accept unionisation for pilots after the debacle gave them increased bargaining power that resulted in the carrier’s first-ever strike.

The annual passenger increase was 2 million less than initial forecasts and slipped from a 15% gain in 2016, putting the brakes on Ryanair’s surge ahead of rivals. The Dublin-based carrier has already cut next year’s forecast tally by 4 million to 138 million customers.

Budapest-based Wizz Air Holdings Plc, Eastern Europe’s biggest discounter, reported a 24% jump in its 12-month count to 28.3 million customers, up from a 19% jump in 2016. The Irish company still added more customers at 12 million, versus 5.5 million at Wizz.

Shares of Ryanair traded 0.3% lower at 15 euros as of 8.01am in Dublin, after gaining just 3.8% last year.

Ryanair’s net income for the quarter ended Sept 30 suffered a rare decline as it shelled out 25 million euros (US$30 million) in refunds to more than 700,000 passengers hit by the cancellations, according to figures published Oct 31.

The company has stood by its forecast for net income of 1.4 billion euros to 1.45 billion euros in the year ending Mar 31.

Ryanair was forced to scrap flights amid a botched rescheduling of pilot leave prompted by changes in Irish labour laws and the poaching of staff by rivals.