Ryanair reports disappointing 3QFY2011 results, Vueling shares up strongly
Ryanair, Europe's largest LCC, reported a disappointing loss in 3QFY2011, despite better revenue performance and higher load factors. The carrier had a EUR300,000 operating loss and a net loss of EUR10 million, on revenue of EUR746 million. However, the airline is forecasting a stronger final quarter with results towards the upper end of its forecast range.
Costs were up 22.3% in the third quarter, driven mostly by an 37% jump in fuel costs. Route charges were up by 20%.
Looking forward, Ryanair anticipates traffic and average fares to continue to benefit from a better mix of new routes and bases and competitor fuel surcharges and lower overall unit costs thanks to better aircraft utilisation. Ryanair’s full year net profit guidance is for EUR380-400 million. For more analysis on Ryanair's latest financial results: Ryanair reports "disappointing" 3Q EUR10 million loss; fares increase 15%. Full year profit expected
Shares in Ryanair were up 0.3% at the close of trading. Elsewhere, Spanish LCC Vueling gained 5.1%, while Aegean Airlines was up 3.5%. Vueling recently announced plans to lease three more A320s in 2011, taking total new aircraft deliveries to nine for the year
Selected European airlines daily share price movements (% change): 31-Jan-2011