Budget airline Ryanair (RYA) has outlined plans to get customers spending more money on non-ticket items following the introduction of more sophisticated web services late last year.
The Irish leisure group says its ancillary revenue - the official term for non-ticket income - continues to track ahead of its 20% group revenue long-term target.
The news comes amid a potential price war on ticket sales as capacity grows across the industry and airlines try to combat weaker demand for certain territories such as Turkey.
Ryanair says its fourth quarter earnings were impacted by more than 500 flight cancellations, following the Brussels terrorist attacks and air traffic control (ATC) strikes.
The airline says ATC strikes have also affected the start of its new financial year, causing an additional 200 cancellations.
Ryanair increased its full-year profit after tax by 43% to €1.2 billion in the year to March 2016. This is despite average fares dropping by 1% to $46.67. It is passing on cost savings from lower fuel prices to customers.
Irish stockbroker Davy argues that Ryanair has performed well over the past financial year and it maintains an ‘outperform’ rating on the stock.
Ryanair has opened more than 100 routes and claims to be the first airline to carry over 100 million international customers in a calendar year.
It has launched seven new bases in Belfast, Berlin, Corfu, Gothenburg, Ibiza, Milan (Malpensa) and Santiago over the past year, to ensure it is strategically placed.
