Tourism Industry News
Ryanair Posts Q3 Loss, Ups Outlook To Profit
Irish airline Ryanair on Monday posted a third-quarter net loss but raised its full-year outlook to a profit from break even, due to lower fuel costs, and forecast substantial profit next year.
Europe's largest low-cost carrier posted a EUR101.5 million euro (USD$130.4 million) adjusted net loss for the three months to the end of December, compared with a EUR35 million profit a year ago.
It now expects a smaller fourth-quarter loss than previously anticipated due to lower fuel costs, allowing it to raise full-year guidance to net profit in the EUR50 million to EUR80 million range versus an earlier projection of break even, it said.
"The 38 percent reduction in oil prices which our fuel hedging has secured will ensure that Ryanair returns to substantial profitability next year, when many of our competitors will be reporting losses," Ryanair said.
Ryanair expects fares to fall by over 10 percent next year, or more if the recession deepens, it said, adding that it does not expect to give precise earnings guidance for 2009/10 until the fare outlook becomes clearer.
"The longer and deeper this recession, the better it will be for the lowest cost producers in every sector," chief executive Michael O'Leary said. "Like Lidl, Aldi, IKEA and McDonalds, Ryanair, is the lowest cost provider - by a distance - in the European airline industry, and we are poised for substantial traffic and profit growth in the coming year as the recession forces millions of passengers to focus on price," he said.
Ryanair, which last month withdrew its latest bid for rival airline Aer Lingus after its was rejected by the Irish government, said it doubted it would make another offer for its rival at Dublin airport.