Menu
02/06/2009
Ryanair Flies Low
The budget airline Ryanair - which flies from two bases in Northern Ireland - has revealed financial returns showing a major nosedive in operating profits.
Ryanair plunged into the red by €169.2 million (£145.9m) in the year to March after being hit with a 59% hike in its fuel bill. This is more than its bitter rival - Aer Lingus lost - with the flag-carrier recording a loss of almost €120m in 2008, and is said to be facing another loss this year.
However, Ryanair's figures are stark when compared with a profit of €481 million the previous year.
The loss is also being blamed on a hefty writedown on the value of its substantial investment as co-owner in rival Irish carrier Aer Lingus, as well as facing record oil prices.
The company said it had been forced to write down the value of its 29.8% stake in Aer Lingus by a further €222m, after Aer Lingus' share price fell.
But, despite such bad news earlier this year on its overall financial performance, Aer Lingus has recently been celebrating taking 1m bookings in the 18 months since it began operating from its new Belfast hub.
Rival Ryanair - led by boss Michael O'Leary - said it also hoped to see a recovery in the current year, forecasting after tax profits to "at least double" thanks to expected lower fuel costs.
The firm said its fuel costs rose to €1.26bn from €791.3m a year before, as oil prices hit records last summer.
Ryanair's loss was larger than analysts had expected, but by 'stripping out' the impact of the Aer Lingus write down, and other one-off factors, Ryanair made a profit of €105m euros - although still a 78% fall on a year earlier.
Ryanair has had two takeover approaches for Aer Lingus rejected since 2006, the last being turned down in January by the Irish government, which is Aer Lingus' second-largest shareholder.
Ryanair Chief Executive Michael O'Leary recently said that the former flag carrier would be bankrupt within 18 months - despite being a major shareholder.
Ryanair lodged formal complaints with Irish and UK financial authorities alleging Aer Lingus misled the market by presenting overly optimistic forecasts after Ryanair withdrew its takeover bid last year.
See: Aer Lingus Dismisses 'Bankrupt' Claim
See: Aer Lingus Soars With 1m Passengers
Ryanair plunged into the red by €169.2 million (£145.9m) in the year to March after being hit with a 59% hike in its fuel bill. This is more than its bitter rival - Aer Lingus lost - with the flag-carrier recording a loss of almost €120m in 2008, and is said to be facing another loss this year.
However, Ryanair's figures are stark when compared with a profit of €481 million the previous year.
The loss is also being blamed on a hefty writedown on the value of its substantial investment as co-owner in rival Irish carrier Aer Lingus, as well as facing record oil prices.
The company said it had been forced to write down the value of its 29.8% stake in Aer Lingus by a further €222m, after Aer Lingus' share price fell.
But, despite such bad news earlier this year on its overall financial performance, Aer Lingus has recently been celebrating taking 1m bookings in the 18 months since it began operating from its new Belfast hub.
Rival Ryanair - led by boss Michael O'Leary - said it also hoped to see a recovery in the current year, forecasting after tax profits to "at least double" thanks to expected lower fuel costs.
The firm said its fuel costs rose to €1.26bn from €791.3m a year before, as oil prices hit records last summer.
Ryanair's loss was larger than analysts had expected, but by 'stripping out' the impact of the Aer Lingus write down, and other one-off factors, Ryanair made a profit of €105m euros - although still a 78% fall on a year earlier.
Ryanair has had two takeover approaches for Aer Lingus rejected since 2006, the last being turned down in January by the Irish government, which is Aer Lingus' second-largest shareholder.
Ryanair Chief Executive Michael O'Leary recently said that the former flag carrier would be bankrupt within 18 months - despite being a major shareholder.
Ryanair lodged formal complaints with Irish and UK financial authorities alleging Aer Lingus misled the market by presenting overly optimistic forecasts after Ryanair withdrew its takeover bid last year.
See: Aer Lingus Dismisses 'Bankrupt' Claim
See: Aer Lingus Soars With 1m Passengers
Related Northern Ireland News Stories
Click here for the latest headlines.
19 October 2007
Ryanair Hits Out As Aer Lingus Takes Flight
The latest news on the controversal Aer Lingus move to a Belfast operation - closing the Shannon-Heathrow route - is that its biggest rival (and ironically, its biggest shareholder), Ryanair is to provide three additional daily flights to London from Shannon Airport to ensure capacity and traffic does not fall as a result of the closure.
Ryanair Hits Out As Aer Lingus Takes Flight
The latest news on the controversal Aer Lingus move to a Belfast operation - closing the Shannon-Heathrow route - is that its biggest rival (and ironically, its biggest shareholder), Ryanair is to provide three additional daily flights to London from Shannon Airport to ensure capacity and traffic does not fall as a result of the closure.
14 August 2007
Aer Lingus Pilots Announce 48-Hour Strike
Around 500 Aer Lingus pilots have announced plans to hold a 48-hour strike next week, in protest over plans to pay staff at the company's new Belfast operation less than those in the Irish Republic. The strike is due to be held next Tuesday and Wednesday and is expected to affect all the air routes run by Aer Lingus.
Aer Lingus Pilots Announce 48-Hour Strike
Around 500 Aer Lingus pilots have announced plans to hold a 48-hour strike next week, in protest over plans to pay staff at the company's new Belfast operation less than those in the Irish Republic. The strike is due to be held next Tuesday and Wednesday and is expected to affect all the air routes run by Aer Lingus.
01 December 2008
Ryanair Flies Into Takeover Turbulence
There's a multi-million euro bid for Aer Lingus on the table today as budget airline Ryanair makes a fresh takeover offer. The all-cash offer would value Aer Lingus at €748m euros (£619m) a lot less than the previous offer for Aer Lingus, which valued it at €1.5 billion.
Ryanair Flies Into Takeover Turbulence
There's a multi-million euro bid for Aer Lingus on the table today as budget airline Ryanair makes a fresh takeover offer. The all-cash offer would value Aer Lingus at €748m euros (£619m) a lot less than the previous offer for Aer Lingus, which valued it at €1.5 billion.
18 November 2024
69-Year-Old Extradited From Spain To Face Child Abuse Charges
A 69-year-old man has been extradited from Spain to stand trial Northern Ireland for child-related sexual offences that occurred in the mid-1980s and early 1990s.
69-Year-Old Extradited From Spain To Face Child Abuse Charges
A 69-year-old man has been extradited from Spain to stand trial Northern Ireland for child-related sexual offences that occurred in the mid-1980s and early 1990s.
16 December 2008
Revamped Ryanair Offer Shot-Down
Aer Lingus - which recently marked its first year of operation at Belfast International Airport - has rejected a fresh Ryanair take-over offer despite a revised bid from the budget airline.
Revamped Ryanair Offer Shot-Down
Aer Lingus - which recently marked its first year of operation at Belfast International Airport - has rejected a fresh Ryanair take-over offer despite a revised bid from the budget airline.
-
Northern Ireland WeatherToday:A showery start with outbreaks most frequent north of Lough Neagh and through the morning, before dwindling during the afternoon as the northwest breezes ease and brighter spells of weak sunshine prosper. Maximum temperature 8 °C.Tonight:A dry night, save for a few light showers around the coasts, with prolonged clear spells and light winds bringing a frosty dawn for many in central and southern parts. Minimum temperature -3 °C.
