Irish no-frills carrier Ryanair has posted a quarterly loss as competition among European airlines has become fiercer. Management attributed the poor results to a sharp drop in fares meant to win over more passengers.
On Monday,the Irish low-budget airline Ryanair
reported that it had flown itself into a net loss in the third quarter of its financial year.
The carrier announced that losses after taxation had amounted to 35.2 million euros ($47.5 million) in the three months to the end of December.
According to Ryanair, this was the worst performance in a traditionally weak third quarter since 2008, with the latest results contrasting, though, with a net profit of 18.1 million euros in the same period a year earlier.
"Our third-quarter loss of 35 million euros is in line with previous guidance and is entirely due to a 9 percent fall in average fares and weaker sterling," CEO Michael O'Leary said in a statement.
Discounted ticket prices had been introduced to boost passenger numbers, the chief executive added.Following earlier profit warnings
, Ryanair stuck to its earnings forecast for the current year, announcing that it would remain unchanged at 500-520 million euros.
hg/mkg (AFP, Reuters)