Ryanair loss for quarter blamed on fuel costs

No-frills airline Ryanair has announced a loss for its third quarter of €102 million, compared with a year earlier when it posted a profit of €35 million for same three-month period.

A 71 per cent rise in fuel costs, up to €328 million, was cited as the cause for the loss. Average airfares decreased by nine per cent for the quarter, down to €34.

Revenue for the period ending 31 December increased by six per cent, to €604.5 million, and passenger numbers grew by 13 per cent, to 14 million.

Ancillary revenues were up by 19 per cent, to €132 million, now amounting to 22 per cent of total revenues, up from 19 per cent for the third quarter last year.

The carrier’s CEO, Michael O’Leary, commented: “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.”

O’Leary noted that Ryanair’s business continued to grow, adding: “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.”

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