Warning about profits

http://www.business7.co.uk/business-news/company-results-and-forecasts/2013/09/04/106408-24005520/

Extracts :

Ryanair said it would ground between 70 and 80 aircraft this winter after reporting profits would either miss targets or be at the lower end of forecasts at between euros 570 million to euros 600 million (£480 to £508 million).
The company also plans to roll out lower fares and "aggressive" seat promotions mainly in the UK, Scandinavia, Spain and Ireland..

Ryanair said the July heatwave across much of northern Europe had dented demand for summer breaks, though the weaker pound against the euro, depressed ticket prices, increased competition and continuing economic problems in the Eurozone were also cited.

The company said: "We will respond to this lower yield outlook by selectively reducing our winter season capacity, thereby cutting our full year traffic target from over 81.5 million to just under 81 million.

"We are also rolling out a range of lower fares and aggressive seat sales particularly in those markets mainly UK, Scandinavia, Spain and Ireland."

FR is very late with the August Pax. figures, wonder why?

It has just been released :
http://www.ryanair.com/en/news/ryanair-carries-record-9-million-passengers-in-august
Not bad :

•Traffic increased by 1% to over 9m passengers.
•First European airline ever to carry 9m passengers in one month.
•Annual traffic to end August grew 2% to over 80m passengers.
•Load factor increased 1% to 89%.
•Ryanair carries 9m passengers in a month, Aer Lingus carries 9m in a year!

But +1% is not FR standards?

Not, it is not !
Hence the warning about profits ....

And FR is to deliver back about 10 - 15 738s to the leasing companies according to their plans, so FR will miss these planes when spring arrives next year? And that is about 4 % capacity and hence less potential pax. and flights?

Why are the traffic forecasts so bleak ?
Ryanair answer :

Ryanair said the July heatwave across much of northern Europe had dented demand for summer breaks, though the weaker pound against the euro, depressed ticket prices, increased competition and continuing economic problems in the Eurozone were also cited.

Those are certainly valid reasons. But in my view, there are other ones - and I am pretty sure that Ryanair is aware of them. Of course, I have no evidence, it's just the feeling of a frequent FR flyer.

- the ticket prices have increased, at least for the cheaper ones. There used to be very cheap tickets, at less than 7 euros, and even much less : sometimes only a few eurocents. Now, the promotions are priced at 12,99 euros and up ...

- certain fees are too high, and the passengers resent it.
For instance the "Airport Boardind card re-issue fee" : 70 euros if you have forgotten to print the boarding card. Perhaps a fee of 25 euros would be enough and not felt as predatory.
The checked baggage fee can also be very high : up to 140 (first bag) or 160 (second bag) if purchased at the airport on high season ! Michael O'Leary can claim the contrary, but it's a fact that the 10 kg cabin baggage is not enough when you go on Holiday, for instance.

- last but not least, the press and televison defamatory campaign against Ryanair, in full swing over all of Europe.
It has made a deep and bad impression over many people who until then were not interested in that. I frequently hear people (which don't know anything in aviation) now saying that Ryanair is not sure, they fly with not enough fuel, the pilots are tired and/or inexperienced, the cabin crew are slaves badly paid and overworked, and so on ...
In my opinion, that press campaign against Ryanair is causing much damage. It would also be better if Michael O'Leary were less abrupt and acid in his comments and would speak more congenially. Ryanair needs sympathy from the public, and don't do that much to attract it ....

I would like to hear your comments and opinions !

I agree with much of your points. But I believe the "Good weather" factor is important, and it will probably reduce the demand for tickets from the North to the South of Europe for the rest of calendar year 2013.
I don't believe  less profit is due to the lack of dirty cheap tickets, since they are sold with a loss anyways.
And then the MOL factor, we know he can be pretty entertaining, but also a pain in the ...!
And I believe he is stretching his talent at this point?

And the forgotten boarding pass print charge, is so disgusting, I don't even want to comment on it!!!

Profits are profits.. I am sure other airlines would rather be in the position that Ryanair finds itself today.

The General booking system to-date  IMO is poor and can be a factor..  A large percentage persevere but a small percentage do not, custom missed.