DUBLIN: Ryanair, Europe's biggest no-frills airline, said on Monday that it suffered a net loss of 10.3 million euros ($14 million) during the group's third quarter because of major travel disruptions.
The Dublin-based airline however voiced confidence that its full-year net profit would be towards the upper end of its previously announced target of between 380 million and 400 million euros.
"This small Q3 loss of 10 million euros is disappointing, as we were on track to break even, but earnings were hit by a series of... strikes/walkouts in Q3, compounded by a spate of bad weather airport closures in December," Ryanair chief executive Michael O'Leary said a results statement.
The results covered the three months to December 31, 2010 and compared with Ryanair's third quarter a year earlier, when the loss after tax had stood at 10.9 million euros.
"We expect traffic and average fares to continue to benefit from a better mix of new routes and bases, and competitor fuel surcharges," said O'Leary. Unlike some of its rivals, Ryanair does not add fuel surcharge to its ticket prices, but the group makes extra income by charging passengers for transporting luggage and for on-board refreshments.
Ryanair said that its ancillary, or extra, revenues jumped 20 percent in the third quarter to 167.1 million euros. Total income rose 22 percent to 746 million euros.
"It would appear that the shorthaul fuel surcharges imposed by many of Europe's flag carriers, allied to the high and rising fares charged by some of our not so low fare competitors, is creating opportunities for Ryanair to grow, even during the winter period, at slightly higher fares," said O'Leary.
The chief executive, known for his outspoken comments, used the earnings statement to hit out at analysts forecasting tough times ahead for Ryanair owing to Ireland's severe debt problems.
"We are surprised that the widespread negative commentary on the Irish economy has been allowed to cloud some analysis of Ryanair's future growth and profitability. Ryanair has little exposure to the Irish economy," insisted O'Leary.
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