Ryanair’s third-quarter loss of €20 million was “disappointing”, according to the airline’s chief executive. The loss was reported despite traffic growth of 8 per cent to €33 million in the quarter and ancillary revenue growth of 26 per cent. In 2018, ancillary revenue represented a quarter of sales for Ryanair.
However, the loss was attributed to 6 per cent decline in average fares due to excess winter capacity in Europe, and higher fuel, staff and EU261 (compensation) costs.
The results do not inlcude the Ryanair’s acquistion of the remaining 25 per cent of Laudamotion.
The airline also closed “unprofitable” bases in Bremen and Eindhoven, and reduced aircraft numbers in Niederrhein and Hahn.
Over the next 12 months, Ryanair Holdings Plc will create four airline subsidiaries; Ryanair DAC; Laudamotion; Ryanair Sun (headquartered in Warsaw); and Ryanair UK (headquartered at Stansted airport), each with their own chief executives and management teams. As a result, Michael O’Leary will become group chief executive.
A replacement chief executive of Ryanair DAC, who will work alongside the chief executives of Laudamotion and Ryanair Sun, will be appointed later this year.
The airline has also said the risk of a no deal scenario remained “worryingly high”. “While we hope common sense will prevail, and lead to either a delay in Brexit, or agreement on the 21-month transition deal currently on the table, we have taken all necessary steps to protect Ryanair’s business in a no-deal environment,” the airline said.