Revenues increased with higher ancillary revenues and traffic. Looking ahead, the company projects increased profit and traffic for fiscal 2015. In
For the year 2014, the company's net profit, on IFRS basis, declined 8% to
Revenue for the year amounted to
Traffic grew 3% to 81.7 million passengers from 79.3 million passengers in the previous year. Load factor increased 1% to 83%.
Revenue per passenger was flat, as strong ancillary revenue growth offset a fall in average fares. Excluding fuel, sector length adjusted unit costs declined 3%.
In a weaker environment, the company noted that it lowered its fares and improved customer experience, resulting in second-half traffic growing 4% as load factors improved by 1%.
The company further noted that its forward bookings for Summer 14 are significantly ahead of last year since it began offering lower fares and released seasonal schedules earlier, and would continue to deliver 2% higher load factors.
Looking ahead to fiscal 2015,
The company expects traffic to increase 4% to over 84.6 million as load factors increase 2% to 85% and with the addition of some limited new route and capacity growth.
According to the firm, most of the projected traffic growth would be skewed towards the second half as it reduce winter grounding to approximately 50 aircraft in fiscal 2015 from 70 aircraft last year.
The company also expects fares to rise by up to 2% in the new year, following a decline last year. The first-half fares would rise by up to 6% due in part to Easter, stable growth in the second quarter, and stronger forward bookings and load factors.
Meanwhile, the company remains very cautious about the second half due to last winter's weak price environment, and expects its commitment to 6% capacity growth could cause fares in this period to fall by as much as 6% to 8%.
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