Budget airline Ryanair is reaping rewards of makeover
Budget airline Ryanair saw profits growth take off last year as a revamp designed to improve its image and attract business customers sent earnings soaring by 66%.
The Irish no-frills carrier - which is celebrating its 30th anniversary - posted post-tax profits of €867m (£614m) for the year to the end of March, up from €523m (£370m) the previous year.
It has bounced back from a drop in annual profits in the previous financial year - its first for five years - thanks to a major push to improve its customer service as part of a programme called Always Getting Better, as well as an expanded business schedule.
Ryanair chief executive Michael O'Leary said the customer services programme had attracted "millions of new customers".
He added: "Our AGB (Always Getting Better) programme is transforming our customer experience, our service, and the way we listen and respond to our customers.
"We have won substantial traffic and share gains in all markets."
The group had increased its guidance for the full-year figures five times ahead of the results and predicted post-tax profits of between €940m (£664m) and €970m (£685m) for the year to next March.
But the group cautioned that it could face tough competition amid an industry-wide move to slash prices, which could impact its business over the winter season. It said: "It would be foolish not to expect some irrational pricing response from competitors who cannot compete with our lowest costs and fares."
Falling oil prices have also provided a boost, with the group reporting an 11% fuel saving per passenger.
And the group said revenues rose 12% to €5.65bn (£4bn) over the year to March. Ryanair also gave a cheery outlook for the summer season as it said forward bookings were 4% ahead of a year earlier, while its average load factor - how well it is filling its planes - grew by 10% over the first four months of the year.
But this growth in load factor will slow to 1% or 2% over the peak summer months, it said.
It has introduced features such as allocated seating to attract more passengers.