Ryanair shares gain over 6pc despite €35m loss
Published 03/02/2014 | 07:13
SHARES in Ryanair gained over 6pc this morning after the company reported a third quarter loss but affirmed its full-year profit guidance.
Ryanair reported a €35m loss for the third quarter ended December in line with guidance as fares and unit costs fell 9pc, the airline said today.
But the airline added that its full-year profit guidance remains unchanged at about €510m.
Revenue per passenger declined 6pc, as strong ancillary revenue growth offset a 9pc fall in fares.
Excluding fuel, sector length adjusted unit costs fell by 9pc.
Chief executive Michael O’Leary said the loss was entirely due to a 9pc fall in average fares and weaker sterling.
“We responded to this weaker pricing environment last September with seat promotions and lower fares which stimulated traffic across all markets resulting in 6pc growth in third quarter, and a 1pc rise in monthly load factors,” he said.
The 'softer' Ryanair is also revamping its website and plans to introduce an app in April - this weekend it introduced pre-booking seating on its services.
Ryanair said its revenues were €969m, no change on the same period in 2012.
It also said the impact of seat promotions and lower fares meant forward bookings in the current quarter and into the new financial year were running significantly ahead of last year, albeit at weaker margins.
Ryanair operates more than 1,600 routes from 65 bases and carries in excess of 80 million passengers every year.
Over the next five years, the airline plans to grow to more than 110 million customers a year, with much of the growth seen at primary airports.