p17 C&F feb6 3/2/09 17:25 Page 17
ttglive.com
city & finance news
NO-FRILLS FIGURES.
Ryanair predicts profits
Chris Gray.
RYANAIR has raised its profit forecasts
for this year despite reporting the
biggest quarterly loss in its history.
The airline warned last summer
that it could be heading for its first
loss since 1989 unless oil prices fell
dramatically.
This week it reported a ¤102m
loss for the last three months of 2008
as fuel costs soared by 71% to
¤328m, accounting for 47% of the
carrier’s operating costs.
But chief executive Michael O’ Leary
(pictured) said Ryanair’s decision not
to hedge fuel for the final three
Ryanair in numbers
months of the financial year had
Oct-Dec 2007 ¤35m profit
paid off as the oil price had plunged,
Oct-Dec 2008 ¤102m loss
meaning fuel costs would be far lower 2008-09 forecast ¤50m-80m profit
from January to the end of March.
Cash reserves ¤1.8bn
He said the impact of recession,
decline in sterling and Ryanair’s deci- and a 13% increase in passengers
sion to cut prices to stimulate demand carried, to 14 million.
would lead to average fares falling Ancillary revenues were up by 19%
20% in the first three months of 2009. to ¤132m and now accounted for
But lower oil costs and reductions 22% of all revenues. O’Leary said this
in non-oil operating costs would mean would increase once inflight mobile
the fourth quarter loss would be phone services were introduced, now
smaller than expected, allowing the expected by March.
airline to predict a full-year post-tax Ryanair was holding more than
profit of ¤50-80m. ¤1.8bn of cash, O’Leary added.
The third-quarter loss came despite
a 6% increase in revenue to ¤604.5m ■ ANA predicts £70m loss, p28
DISPOSAL.
SAS sells Spanair stake for ¤1
SCANDINAVIAN have a significant
carrier SAS is negative impact on
selling 80.1% of the fourth-quarter
its stake in loss- earnings of the SAS
making subsidiary Spanair to Spanish Group, but we believe the new owners
investors, who are promising to will secure the future of Spanair and
develop the brand to benefit tourism develop the company to the benefit of
around Barcelona. the Barcelona region.”
The group, headed by the Consorci The sale of Spanair was held up last
de Turisme de Barcelona tourist August by the crash of a Spanair
service, is paying ¤1 for its majority MD-82 in Madrid, killing 154 people.
stake. SAS, which is half owned by
SAS will retain a 19.9% stake, and the Swedish, Danish and Norwegian
said the sale will add £414m to its governments, is also selling its stake
costs this year. in Latvian carrier AirBaltic. The airline
SAS Group chief executive Mats is also considering whether to put
Jansson said: “The transaction will itself up for sale.
Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72  |  Page 73  |  Page 74  |  Page 75  |  Page 76