Ryanair expects to deliver a full-year profit, at the high-end of its guidance to analysts, despite a third quarter financial performance below expectations.
The airline suffered an after tax loss of €10.3 million ($14 million), despite an expectation it would manage to breakeven. Ryanair CEO Michael O’Leary blames Air traffic controller strikes and walkouts, as well as “a spate of bad weather airport closures in December.” The result was slightly better than last year’s €10.9 million loss for the period.
And although fuel prices are on the rise, O’Leary notes that Europe’s biggest low-fare airline is well hedged both for the rest of its fiscal year and for most of fiscal 2012, albeit at a rate slightly above that secured for the current fiscal year.
The fuel hedges for the rest of the financial year, and slightly improving unit cost performance, lead O’Leary to project a net after tax profit for the full year closer to €400 million than €380 million – the guidance previously given.
In the third quarter, Ryanair saw revenue increase 22% to €746 million year-on-year, with passenger totals of 17 million, up 6%.
O’Leary also expressed frustration that the airline’s outlook is affected by the generally negative view of the Irish economy. He notes that the low-fare carrier now originates less than 10% of traffic from its home market. However, he expressed the hope a new government, to be formed after general elections in February, will roll back costs imposed on air travel, although any incoming government will face severe pressure to rectify the country’s budget deficit.