Ryanair hit with third quarter loss
Ryanair hit with third quarter loss - Dublin Airport News
Airport news for Dublin on 02/02/2009.
Average airfares were down nine per cent, €34, and fuel costs increased by 71 percent to €328 million, over the same quarter last year.
For the three-month period ended 31 December 2008, revenues increased by six per cent, to €604.5 million, and passenger traffic rose by 13 per cent, to 14 million passengers.
Other revenues increased during the quarter by 19 per cent to €132 million, now accounting for 22 per cent of overall revenue. This figure is up by 19 per cent from the third quarter of the previous year.
Ryanair CEO Michael O’Leary commented on the results: “Our Q3 loss of €102 million was disappointing, but in line with expectations, and was almost entirely due to a €136 million increase in fuel costs. Average fares, due to recession and weaker sterling, fell by 9% to €34, but this decline was largely funded by a 3% reduction in non fuel operating costs.”
He went on to say: “The general economic environment remains extremely difficult, as the recession saps consumer confidence, but this is proving to be good for Ryanair’s traffic growth, as more and more passengers switch to Ryanair’s lowest fare lowest cost model”.
According to the airline executive, a number of Ryanair’s rivals have reported a decline in short-haul traffic in recent months, while Ryanair’s traffic numbers are on the rise. He said: “We will continue to lower fares to maintain our traffic growth and high load factors.”