Ryanair posts €20m loss as airline warns chance of no-deal Brexit is ‘worryingly high’

The airline said ancillary revenues such as fees for checked luggage and seat bookings rose 26 per cent, but this was offset by higher fuel and staff costs

Ryanair swung to a €20m (£17.5m) loss in the third quarter, blaming low air fares.

The budget airline reported an 8 per cent year-on-year increase in passengers, while revenue also rose by 9 per cent to hit €1.5bn.

Ryanair previously warned that profits would be around €100m lower for the current financial year.

The company also reported that ancillary revenues, such as checked bag fees, had risen 26 per cent in the third quarter, although this was offset by higher staff and fuel costs.

The group was hit by a series of strikes by pilots and cabin crew which grounded hundreds of flights last summer, and was forced to increase wages.


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Chief executive Michael O’Leary said that while the loss was disappointing, “we take comfort that this was entirely due to weaker than expected air fares so our customers are enjoying record low prices, which is good for current and future traffic growth”.

The airline said the risk of a no-deal Brexit “remains worryingly high”, and added: “While we hope that common sense will prevail, and lead to either a delay in Brexit, or agreement on the 21 month transition deal currently on the table, we have taken all necessary steps to protect Ryanair’s business in a no-deal environment.”

George Salmon, equity analyst at Hargreaves Lansdown, said: “Ryanair is licking its wounds after a difficult 2018 that saw extra competition drive down prices and higher staff and compensation costs push expenses up.

“Brexit uncertainty continues to weigh on the company, but the most interesting news in these numbers is the fact the group doesn’t share the more upbeat outlook of competitors. Ryanair has said pricing pressure will continue into summer 2019.

“Lower profitability has seen net debt tick up past €1bn, but the balance sheet remains strong – especially since Ryanair owns over half its planes outright.”

He added: “This sure footing and a dominant market share means Ryanair should come out of the current turbulence on top, but its weaker outlook on pricing suggests things could get worse before they get better.”

Meanwhile, the firm is changing its group structure to a setup it says is “not dissimilar” to that of British Airways owner International Airlines Group.

Mr O’Leary will become group chief executive of Ryanair Holdings, overseeing four subsidiaries: Ryanair DAC, Laudamotion, Ryanair Sun and Ryanair UK, which will each have their own management teams. Mr O’Leary has signed a five-year contract for the new role.