Ryanair bullish as losses narrow

Ryanair bullish as losses narrow

Ryanair has raised its forecast for this year due to narrowing losses and a better mix of new routes.

Unveiling its latest quarterly figures, the low-cost carrier forecast profits of €275m, up from forecast of €200.

It reported a €10.9 million loss for quarter ending December 31, compared to a €101.5 million loss year-on-year.

Michael O Leary, Ryanair’s chief executive, described market conditions as “difficult” but said it was taking market share from Air France-KLM, British Airways and Lufthansa.

A 37 percent fall in fuel costs during the quarter helped to offset a 12 percent fall in average fares.

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Ryanair said it also benefited from “deep cuts” in loss-making winter capacity that included scaling back at airports such as a Dublin and Stansted.

Ancillary revenues increased 6 percent, whilst passenger volumes were up 14 percent due to“changes in consumer behaviour”.

Ryanair, which in December cancelled talks with Boeing on a potential order of up to 200 aircraft, said that it was planning to scale back investments from 2013, and it could start returning cash to shareholders instead.

Shares rose 5 per cent in early trading.