Ryanair today posted a third-quarter net loss but raised its full-year outlook to a profit from breakeven, due to lower fuel costs, and forecast substantial profit next year.
Europe's largest low-cost carrier posted a €101.5 million ($130.4 million) adjusted net loss for the three months to the end of December, compared with a €35 million profit a year ago.
It now expects a smaller fourth-quarter loss than previously anticipated due to lower fuel costs, allowing it to raise full-year guidance to net profit in the €50 million to €80 million range versus an earlier projection of breakeven, it said.
“The 38 per cent reduction in oil prices which our fuel hedging has secured will ensure that Ryanair returns to substantial profitability next year, when many of our competitors will be reporting losses,” Ryanair said.
Ryanair expects fares to fall by over 10 per cent 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.
“The longer and deeper this recession, the better it will be for the lowest cost producers in every sector,” chief executive Michael O'Leary said.
“Like Lidl, Aldi, Ikea and McDonalds, Ryanair, is the lowest cost provider - by a distance - in the European airline industry, and we are poised for substantial traffic and profit growth in the coming year as the recession forces millions of passengers to focus on price,” he said.
Ryanair, which last month withdrew its latest bid for Aer Lingus after it was rejected by the Government, said it doubted it would make another offer for its neighbour at Dublin airport.
Reuters