The low-cost airline Ryanair has to cope with the first profit decline in five years. In the all-important summer half-year, net profit of 1.2 billion euros, fell by seven per cent behind the earnings of 2017. CEO Michael O’leary pointed to the creation of significantly higher fuel prices, but also to increased personnel costs. The salaries of the pilots were raised on average by 20 percent.

In a hot summer would also strike the course – both internally and externally. The Airline argued with their pilots in Europe, the recognition of trade unions. On the other, there were work stoppages by air traffic controllers. Sales rose however by eight percent to 4.8 billion Euro, mainly thanks to substantial successes in addition to the business. Including Ryanair expects everything, what relates to the direct ticket sale, so of Luggage, the bookings, as well as the selection of special Seating, food and drinks on Board.

Ryanair was in terms of Profit, long as the flagship airline of the cheap aviators and was able to. despite his often gruff Service and the offers without all of the Extras from one success to the next rush But for months, it can’t. Last autumn, Ryanair had to cancel due to internal faulty planning in the service plan of the pilot thousands of flights.

Ryanair boss says “gloomy” Winter advance

In the ensuing altercation with flight staff was O’leary, trade unions under certain conditions in the company allow. Previously, he had smoked and has always been, for it had been a cold day in hell. Last, the Airline had reduced at the beginning of the month, your profit for the current fiscal year. Instead of using 1.25 to 1.35 billion euros, O’leary calculated with 1.1 to 1.2 billion euros.

hanging out a Lot in the coming months, the price of Oil, said the combative Ryanair chief at the presentation of the result. The current forecast is based on a price of $ 85 (about 73,80 Euro) per Barrel. Analysts but also keep Oil prices up to 100 dollars for not excluded. Currently, North sea oil of the Sort Brent trading just below $ 80. This is 40 percent more expensive than a year ago.

Not in the least because of Oil prices, O’leary for the industry, predicted a “bleak” Winter. Also prevailed in many European markets continues to have a significant Overcapacity. The difficult situation may be said to have the Ryanair boss but also Positive: it will lead to a further consolidation of the market. “I hope that more (disappearance of the small providers), because they deserve to disappear,” he said, referring to the recent wave of reports of Insolvency in the case of low-cost airlines. In the past few weeks, the Danish company Primera Air, Cobalt from Cyprus and the German subsidiary of Small Planet Airlines bankruptcy was filed.

The strong Dollar, the price of Oil and rising interest rates to set all of the air travel companies, confirmed Neil Wilson, an Analyst at Due to the strict cost control Ryanair because standing there, in principle, good. In favour of strikes made and the trade-Union question to create the organization.

“We work to meet the conditions of the 19th century. Century“

O’leary stressed, however, that the group did the work stoppages in the private house in the handle, with eight strike days over the summer months, his company stand as better than competitors. More difficult than the pilot strikes the repeated work stoppages were pilots of the French airline.

While Ryanair, among others, in the UK, Ireland and Italy, in the talks with the unions well ahead, has exacerbated the situation in Germany. The airline had announced in connection with the profit warning that closing the two locations in Bremen and Weeze on the lower Rhine at the beginning of November. The staff should be distributed to other locations in the whole of Europe. The Union Ver.di and the pilot representative Union Vereinigung Cockpit (VC) make the cooperation with Ryanair from social plans for the two sites.

“We work to meet the conditions of the 19th century. Century“, scolded.di chief Frank Bsirske on Friday it’s the time to end the collective bargaining talks. Back cover get the Ryanair employees of the Federal Minister of labour, Hubertus Heil (SPD). The employment model of abuse of the hopes of young people in Europe, the conflict was therefore more than a typical labor dispute.

The Minister wants to fulfil demands of the trade unions and the formation of operating councils of the flying staff facilitate. This process is, as yet, according to the works Constitution act, namely dependent on a previous collective agreement for the formation of such a body, the Ryanair and Lufthansa-participation SunExpress block so far, permanently. In the next few weeks and months will show how the workers ‘struggle influence the customers’ trust in Ryanair, said Analyst Wilson.

in Addition, under pressure, the airline has come just in the UK because of the allegation, not vigorously take action against racism. On a flight from Barcelona to Stansted last Friday, an elderly lady racist hostility of your seat was exposed to neighbors, without that this had been rebuked by the flight crew or of the plane referred to.