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Ryanair forecast gloom LOW-COST air travel pioneer
Ryanair has warned there could be tough times ahead.
Its comments came as it revealed a 27 per cent drop in third-quarter profits.
The airline warned poor market conditions meant profits may fall in its
next financial year.
Ryanair said its underlying net profit in the three months to the end
of December fell by 27 per cent to €35million from €48million
the same time the previous year.
And it said booming oil prices and fears of a recession could hit its
operations over for the coming year.
A spokesman said: “With oil prices at $90 a barrel and fear of recession
in Britain and many other European economies the current outlook for the
coming fiscal year is poor.
“There is now a significant chance that profits may decline next
year.”
Passenger traffic grew by 21 per cent to 12.4million in the three-month
period while revenues rose by 15 per cent to €569million.
Chief executive Michael O’Leary warned current oil prices would
impose significantly higher costs during a year when it planned to expand
capacity by almost 20 per cent.
He said: “The European airline sector is presently facing a cyclical
downturn with the possibility of higher oil prices, poor consumer demand,
weaker sterling and higher costs at airports.
“While it is impossible to accurately forecast full-year fuel prices
and yields this far in advance there is a significant chance that profits
may decline next year.” |
