Ryanair posts first annual loss

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Ryanair, the largest of Europe’s no-frills airline, has reported its first full-year loss on soaring fuel costs and a write-down in the value of its stake in Aer Lingus for the second year in a row.

The net loss for the 12-month period ended 31 March amounted to 169 million euros, as compared with 391 million euros in net income one year earlier, the Dublin-based carrier’s statement said. The loss was even greater than the 70 million euros estimated by analysts in a Bloomberg survey.

The airline has been reducing ticket prices during the current economic downturn as its looks to lure air travellers away from rivals such as British Airways and Lufthansa. In February, Ryanair announced that it would be scrapping check-in desks and it continues to discourage passengers from checking bags, as it strives to cut operating costs and return to profitability.

Michael O’Leary, Ryanair’s CEO, said in the statement released by the airline: “Ryanair will continue to lower fares to stimulate traffic growth,” adding: “We intend to use reductions in both fuel and other costs to drive fares materially lower.”

Thanks to www.bloomberg.com for the above quotes, for more information on this article please visit their website.

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