Ryanair loses $14 million in the fiscal third quarter

Ryanair (Dublin) announced a slightly reduced fiscal third quarter loss of €10m ($14 million) (down from a Q3 loss of €11m last year). Total revenues grew by 22% to €746m, as traffic increased 6% to 17m and average fares rose by 15%. Unit costs increased by a similar 15% due to a 14% increase in flight hours, as average sector length rose by 7%. Excluding fuel (which is up 37%), unit costs rose by 8%.

Ryanair provided the following outlook for the fiscal fourth quarter:

“Our outlook for Q4 and the remainder of FY11 remains largely unchanged. Easter does not fall in the current Q4, which makes the comparatives challenging. We expect traffic and average fares to continue to benefit from a better mix of new routes and bases, and competitor fuel surcharges (which in many cases exceed Ryanair’s lowest fares). We expect our unit cost performance in Q4 to be marginally better thanks to the launch of new routes in Feb and March which will reduce the number of grounded aircraft by comparison with Q3. Accordingly, we are now confident that our Q4 and full year results will be towards the upper end of our previously guided range of a Net Profit after tax of between €380m to €400m after tax”.

In other news, Ryanair announced an extended summer season operation at Marseille which will see up to two aircraft temporarily overnight at the airport for just over a four month period (April 14 until September 4) offering 24 routes and delivering 500,000 passengers at Marseille’s MP2 terminal this summer.

According to the airline, “Ryanair closed its Marseille base in January following unjustified legal proceedings which sought to force Ryanair’s Irish crew to pay tax and social insurance in France, despite European Regulations which allow Ryanair’s crews to pay taxes and social insurance in Ireland where they were employed, worked and paid. Ryanair continues to operate 13 routes to Marseille from other Ryanair bases and has taken a case in the European Courts against the French decree.”

Copyright Photo: Keith Burton. Please click on the photo for the aircraft details.

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