Losses shrink at Ryanair due to cutbacks
Irish budget airline Ryanair has today posted a €10.9 million (£9.4 million) loss for the October to December quarter.
However, the loss for Europe’s largest no-frills airline was much less than the €101.5 million deficit it posted for the same period a year earlier – when fuel costs were sky-high.
The group said the result had been boosted by a 37% drop in fuel costs, as well as “deep cuts” in loss-making winter capacity.
Ancillary revenues – for services such as checking baggage and in-flight meals grew by 6% – considerably less than the airline’s 14% rise in passenger volumes, which the airline attributed to “changes in consumer behaviour”.
Ryanair’s results come just a few days after the International Air Transport Association (IATA) said 2009 saw the biggest decline in air passenger traffic since the aftermath of World War II.
The Industry body’s chief, Giovanni Bisignani, said: “In terms of demand, 2009 goes into the history books as the worst year the industry has ever seen.”
IATA estimates that airlines collectively lost $11 billion (£6.8 billion) in 2009 and believes that airlines will suffer losses of $5.6 billion (£3.5 billion) in 2010 – an increase from the $3.8 billion it originally predicted.