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28/07/2008
Ryanair Lose 85% Profits
Ryanair have announced a huge 85% cut in their profits for this year, and have admitted they expect a overall loss for this year.
It will be the first operating loss the budget airline will have experienced since going public in 1997, citing the consumer spending slowdown.
As a result, Ryanair is planning to ground 19 planes at Dublin and London Stansted, its most expensive airports.
Ryanair Chief Executive Officer, Michael O'Leary, said: "The emerging economic recession in the UK and Ireland caused by the global credit crisis and high oil prices means that consumer confidence is plummeting, and we believe this will have an adverse impact on fares for the rest of the year.''
At least 24 other carriers have ceased flying or filed for bankruptcy this year over the rapidly growing fuel bills, which have now become the industry’s biggest expense.
Ryanair said its first quarter revenues grew by 12% to €777 million, well below the €865.4 million expected.
The firm's fuel bill has almost doubled as it faces the compounding consumer confidence crunch.
"On the basis of our existing fuel hedges, fourth quarter oil prices at about $130 per barrel (€82), and average fares falling by 5% for the full year, we expect to record a full year result of between break-even and a loss of €60 million," said Mr O'Leary.
(DW)
It will be the first operating loss the budget airline will have experienced since going public in 1997, citing the consumer spending slowdown.
As a result, Ryanair is planning to ground 19 planes at Dublin and London Stansted, its most expensive airports.
Ryanair Chief Executive Officer, Michael O'Leary, said: "The emerging economic recession in the UK and Ireland caused by the global credit crisis and high oil prices means that consumer confidence is plummeting, and we believe this will have an adverse impact on fares for the rest of the year.''
At least 24 other carriers have ceased flying or filed for bankruptcy this year over the rapidly growing fuel bills, which have now become the industry’s biggest expense.
Ryanair said its first quarter revenues grew by 12% to €777 million, well below the €865.4 million expected.
The firm's fuel bill has almost doubled as it faces the compounding consumer confidence crunch.
"On the basis of our existing fuel hedges, fourth quarter oil prices at about $130 per barrel (€82), and average fares falling by 5% for the full year, we expect to record a full year result of between break-even and a loss of €60 million," said Mr O'Leary.
(DW)
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Ryanair is planning to ground up to 10% of his fleet this winter in a move to counter crippling airport charges. While the Irish budget airline saw full year after-tax net profits rise by 10% - other reports have cited 20% - to £381 million, the doubling of landing and handling charges by operator BAA still requires the carrier to cut costs.
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Fare Increases For Profitable Ryanair
The Irish 'budget airline' Ryanair has reported a jump in first quarter profits and passenger numbers. However, it still aims to push up fares, which the firm said would rise by an average of up to 12% in the year to the end of March 2012 as fuel prices rise.
Fare Increases For Profitable Ryanair
The Irish 'budget airline' Ryanair has reported a jump in first quarter profits and passenger numbers. However, it still aims to push up fares, which the firm said would rise by an average of up to 12% in the year to the end of March 2012 as fuel prices rise.
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Ireland WeatherThis Evening and Tonight:Mostly cloudy with showery outbreaks of rain reaching parts of Antrim and Down later this evening, The showers will extend westwards overnight, clearing from most places by morning. Minimum temperature 7 °C.
