Ryanair Reports Net Loss for Third Quarter of 2018

05 February 2019 10:42am
Jorge
Ryanair plane taking off

Ryanair has reported a net loss of €20 million for the third quarter of financial 2018. Strong traffic growth of eight per cent at the low-cost carrier was offset by a six per cent fall in average fares. The latter was caused by excess winter capacity in Europe, Ryanair said.

Stronger ancillary revenue growth, of 26 per cent to €557 million for the quarter, was again offset by higher fuel, staff and Brexit preparation costs.

Quarter three revenue increased nine per cent to €1.53 billion, up one per cent per guest, due to a strong performance in ancillary revenue and increased traffic stimulated by a six per cent decline in average fares.

This Austrian airline will carry just over four million customers in its first (start-up) year, but was heavily loss making, mainly due to the very late release of summer 2018 schedules, low promotional fares, expensive aircraft leases and unhedged fuel.

Due to recent improvements in schedules, fares and costs, the exceptional year start-up loss has, however, been reduced from an expected €150 million to approximately €140 million, Ryanair said. The losses are, however, excluded, from the main Ryanair balance sheet.

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