Ryanair Predicts Profits Will Follow €100m Loss

Although Irish budget airline Ryanair now expects a smaller fourth-quarter loss than previously anticipated - due to lower fuel costs - the airline has today reported a loss of €102m for the third quarter of 2008/09.

The €101.5m adjusted net loss for the three months to the end of December compares with a €35m profit a year ago.

However, a spokesman said the loss was because of a 71% increase in fuel costs at the time.

Now, as well as looking ahead to the next quarter's figures, the airline has also raised its full-year outlook to one that anticipates returning to profit from a previously predicted break-even situation.

This is also due to lower fuel costs, and the positive view is a forecast for substantial profit next year.

The expected smaller fourth-quarter loss therefore allows it full-year guidance predictions of net profit in the €50-80m range versus an earlier projection of break-even, it said.

Commenting, Ryanair still expects fares to fall by more than 10% next year, or more if the recession deepens, it said, adding that it does not expect to give precise earnings guidance for 2009/10 until the fare outlook becomes clearer.

Last month, Ryanair indicated that it would not proceed to the next phase of its proposed takeover of Aer Lingus.

Unless it receives support from Aer Lingus shareholders - which has not been forthcoming - the airline said, if shareholders do not want the only takeover offer on the cards Ryanair, it will take its proposal off the table on 14 February.

See: Revamped Ryanair Offer Shot-Down