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2-Feb-2010 12:36 PM

Ryanair expects net loss of EUR100 million in 4Q; cash position of over EUR1 billion in 2009

Ryanair announced the following outlook upon the release of its financial results for the three months ended Dec-2010 (3QFY2010) (Dow Jones/Financial Times/Bloomberg, 02-Feb-2010):

  • Yields: Expects yields in the fourth quarter to be down 7% to 10%;
  • 4Q2010 outlook: New full-year guidance of EUR275 million implies a net loss approximately EUR100 million in the fourth quarter;
  • Traffic outlook: Ryanair stated it expects to grow passenger numbers by 10% to 73 million passengers for FY2011, from an estimated 66 million passengers in 2010;
  • Cash position: Ryanair had over EUR1.01 billion in cash and cash equivalents at the end of 2009, and expects to generate up to EUR1 billion of surplus cash by the end of 2013, "which would be available to return to shareholders";
  • Network plans: Ryanair stated it plans to open 146 new routes in 2010;
  • Capital expenditure: Gross capital expenditure will fall annually from EUR1.2 billion in FY2010 to approximately EUR100 million by FY2014, following the termination of talks with Boeing for an order of up to 200 aircraft;
  • Economic environment: There is "really no sign" of an end of the recessionary environment in the UK.

Ryanair: "The performance over the winter is a bit better than expected. In terms of the recession being over, not in Ireland or indeed across Europe ... We have to get rid of more competition in the market," Howard Millar, CFO. Source: Dow Jones, 02-Feb-2010.

Ryanair: "We expect further casualties this winter. We are increasing market share particularly where we compete with the big three high-fare flag carrier groups," Michael O'Leary, CEO. Source: Dow Jones, 02-Feb-2010.

Ryanair: "We're seeing demand return, not quite to pre-2009 levels yet, in places like Germany, Scandinavia, Italy, France and Spain. They're moving back up. In Britain, particularly in provincial Britain, and Ireland, there's no sign of that yet," Michael Cawley, Deputy CEO. Source: Financial Times, 01-Feb-2010.

Ryanair: "We expect that, as our rate of growth moderates, our fares, or fare reductions, will moderate and we may be seeing some fare increases sooner than we might otherwise have expected," Michael Cawley, Deputy CEO. Source: Bloomberg, 01-Feb-2010.

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