Fuel savings see big fall in Ryanair losses
01.02.10
Ryanair has reported a €10.9m (£9.5m) net loss for the October to December quarter on revenues up 1% to €612 million, a big improvement on the €101.5m deficit it reported for the same period in 2008. The budget airline also its full-year profit forecast, saying it now expected net profits of about €275m.
Ryanair said the result had been helped by a 37% fall in fuel costs, which had offset a 12% fall in fares. It had also cut some loss-making routes for the winter period, most significantly at 'higher cost' airports Stansted and Dublin.
The airline said it has benefited in the recession as its competitors struggle, and that it aims to increase passenger numbers by 10% to 73 million in 2011 as it moves into routes vacated by its rivals. Its passenger numbers rose 14% to 16 million in the quarter.
Ancillary revenues - such as charges for extra services and commission from sales of hotels and airport parking - grew more slowly than passenger numbers at 6%. Ryanair said the main reason for this was customers avoiding excess baggage costs.
Michael O'Leary, Ryanair's chief executive officer, said market conditions remained ‘difficult’ but said the airline was still gaining market share from Air France-KLM, British Airways and Deutsche Lufthansa.
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