Ryanair Slashes Losses As Fuel Costs Fall

Europe’s largest low-fare airline Ryanair has reported a third-quarter loss of £9.6m but raised its annual profits forecast.

Ryanair says it won market share from rivals during the recession

The Dublin-based company said it was “disappointed” with the figure.

However, it said it was pleased the losses had come down from £88.8m in the same period the year before.

The airline credited a 37% fall in fuel costs with helping it narrow its figures between October and December.

Revenues rose by 1% to £532m, as a growth of two million passengers largely offset a 12% decline in average fare.

Ryanair now expects to make a full-year profit in the region of £239m – higher than previously thought.

Bosses said the airline benefited in the recession where other competitors were struggling.

Deputy chief executive Michael Cawley told Sky News: “We’re a low cost airline and our costs are less than half that of our nearest competitor EasyJet and up to 70% less per seat than BA, so our costs are the key to profitability.”

He added: “We have never been more confident about the market and the market opportunity in Europe and we’re set to grow by a further 50% over the next three years.”

In December the company confirmed it was terminating a discussion with Boeing for 200 new aircraft between 2013 and 2016 after disagreements over delivery terms and conditions.

It will still take delivery of 112 planes up to the end of 2012.

Rival airline British Airways will reveal its third-quarter results later this week and is widely expected to show record losses.

It has also moved closer to securing its merger with Iberia and American Airlines.

BA and the European Commission, Europe’s top anti-trust watchdog, confirmed that competition officials have started consulting rival airlines, such as Virgin Atlantic, about the concessions the three carriers have offered to address potential anti-competitive implications.

However the airlines, which all belong to the Oneworld alliance, will still need approval from the Department of Transportation in Washington to go ahead with the deal.

Comments

Leave a comment