Low cost airline Ryanair today announced a third quarter loss of 11 million euros, down from a loss of 102 million euros in the same period last year
By Ellie Duncan
The airline has now increased its full year net profit guidance to 275 million euros, from the lower end of the range of 200 million euros to 300 million euros previously guided.
Revenues rose by 1 percent to 612 million euros, as 14 percent traffic growth was offset by a 12 percent decline in average fare. Unit costs fell by 23 percent, despite a 3 percent increase in sector length.
CEO Michael O’Leary said it was a “disappointing” third quarter, although he added it was a “significant improvement” on the previous year.
He acknowledged the demise of several airlines, including the UK’s Flyglobespan, Blue Wings in Germany and My Air in Italy, and expects further “casualties” this winter.
“Market conditions remain difficult, although the increasing pace of consolidation and closures among our competitors allied to Ryanair’s continuing fleet expansion will lead to further market share gains this year, in particular in Italy, Scandinavia, Spain and the UK,” O’Leary said.
Ryanair has announced an array of new routes and bases for fiscal 2011, and now expects traffic to grow by approximately 10 percent to 73 million.
Edited by Chris Farnell
Source: www.ryanair.com/en/investor/investor-relations-news