Big fall in Ryanair losses
01.02.10
Ryanair announced this morning that it made 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 upgraded its full-year profit forecast, saying it now expected net profits of around €275m.
The airline said the result had been helped by a 37% fall in fuel costs in the quarter, which had offset a 12% fall in average fares. It also cut some loss-making routes for the winter period, most significantly at 'higher cost' airports Stansted and Dublin.
A spokesman said Ryanair has benefited in the recession as its competitors struggle, and that it aims to increase passengers by 10% to 73 million in 2011 as it moves into routes left by rivals. Its passenger numbers rose 14% to 16 million in the quarter.
Ancillary revenues - such as charges for hold luggage and commission from sales of hotels and airport parking - grew more slowly than passenger numbers at 6% in the quarter. Ryanair said the main reason for this was customers 'changing behaviour ' to avoid excess baggage costs.
Michael O'Leary, Ryanair's chief executive officer, said market conditions remain ‘difficult’ but the airline was still gaining market share from Air France-KLM, British Airways and Lufthansa.
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