Ryanair are expecting to cut down their fares by nearly €3 from 2016 in the light to save fuel. Starting next fiscal year, the airline will hedge most of its fuel demand from 1st of April at around $92 per barrel. Confirming on a quarterly statement on Monday, the airline will deliver this savings of fuel at €1.81 per passenger.
The airline has begun ordering fuel for the financial year at $68 a-barrel.
This act would save around €300 million or €3 a-passenger, said chief executive. Most of this could be given away in the form of lower fares.
Based on lower-oil prices and increase in airline traffic, the airline announced a pre-tax profit for its third quarter. This is around €49 million. It will end on December 31st that will also reverse a loss of €35m faced in 2013.
Moreover, the traffic at the airline increased 14 per cent to 21 million as average prices increased by 2 percent to € 40. In addition, the revenues also increased by 17 per cent to € 1.13 billion. In terms of unit costs it fell by 6 per cent.
All these results reflect the progress report of the company. The company has increased its focus on the business travel and customer service. These methods are also instilling substantial fare and cost over their competitor airlines. This draws in millions of new customers to the Ryanair airlines.
The company has added the balance sheets with gross earnings of € 4.1 billion as their strongest solution. The calculated net cash balance is of € 447 million.
Such systemic approach is subject to market conditions for over a six month period, said the airline.
According to IAG, Ryanair said they have not received any formal approach to restate their position in due course. The airline has raised enough profit from € 810 million to € 830 million to an approximate range of between €840 million and € 850 million.