Being nice pays off for Ryanair as customer numbers jump
Monday 03 February 2014
Ryanair boss Michael O’Leary’s attempts to woo back passengers by shedding its image for poor customer service and imposing punitive charges at every turn appears to be working as the airline saw customer numbers rise by 6 per cent to 18 million.
The maverick chief executive revealed that seat promotions and lower fares meant sales were down 9 per cent in the last three months, leaving a €35 million (£28.8 million) loss.
He added that even though takings for tickets fell, the amount passengers spent on extras such as reserve seating, priority boarding and higher credit card fees rose, meaning ancillary revenues jumped 13 per cent over the period.
O’Leary said last year that he wanted to overhaul the abrupt culture of the business, following a profit warning in November and years of being voted among the worst companies for customer service.
He had been criticised for telling customers they deserved being charged extra for forgetting to print boarding passes or getting information on their tickets slightly wrong.
Today the company said its new initiatives were paying off and been fully implemented, including offering a free second carry-on bag, a 24-hour grace period to correct minor booking errors and reducing boarding card and airport bag fees.
Allocated seating has also proved popular, with a €5 surcharge per seat. Ryanair also wants to focus more on winning over business passengers to plug the losses, which the company said were in line with expectations.
Meanwhile, Flybe said the economic recovery in the UK means bosses will reduce job losses by 10 per cent. The result is that about 450 staff will lose their jobs, rather than the expected 500.
A huge restructuring has seen 30 unprofitable routes cut, with write-offs of £14 million expected this year and a further £27 million in 2015.
Sales in the third quarter fell to £142.9 million from £165.5 million.
- 2 Tunisia hotel attack: Locals form 'human shield' to protect hotel from gunman Seifeddine Rezgui
- 3 Russian officials ban yoga because it's too much like a religious cult
- 4 German ethics council calls for incest between siblings to be legalised by Government
- 5 Ginger Pride festival to take place next summer, organisers say 'time of bullying gingers is over'
Tunisia hotel attack: Locals form 'human shield' to protect hotel from gunman Seifeddine Rezgui
German ethics council calls for incest between siblings to be legalised by Government
People are American flagging their Facebook profile pictures in response to those rainbow flagging them
Ginger Pride festival to take place next summer, organisers say 'time of bullying gingers is over'
Historic meeting between Pope Francis and Russian Orthodox head 'getting closer'
The moment a Queen's Guard soldier lost it and drew his gun at annoying tourist
Greece crisis: The wider lesson is that it’s time to abandon this failed experiment in currencies
'I wish the BBC would stop calling it Islamic State' – David Cameron unleashes frustration at broadcaster
Greece crisis: IMF was pushed around by Angela Merkel and Nicholas Sarkozy – and now it is being humiliated
Pentagon accuses Russia of 'playing with fire' over nuclear threats towards Nato
They are neither a 'state' nor 'Islamic': Why we shouldn't call them Isis, Isil or IS
iJobs Money & Business
£20000 - £25000 per annum + OTE £45K: SThree: SThree were established in 1986....
£40000 - £60000 per annum: Recruitment Genius: A Compliance Manager is require...
£22500 - £27000 per annum + OTE £45K: SThree: Since our inception in 1986, STh...
Negotiable: Recruitment Genius: This extremely successful and well-established...