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 Business News Stories
Click here for the latest headlines.
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.
17 December 2008
Revamped Ryanair Offer Shot-Down
Aer Lingus has rejected the Ryanair offer despite a revised bid from the budget airline yesterday. The rejection comes in spite of two major changes to the initial hostile takeover offer, with the Aer Lingus Chairman Colm Barrington dismissing the offer as "nothing new".
Revamped Ryanair Offer Shot-Down
Aer Lingus has rejected the Ryanair offer despite a revised bid from the budget airline yesterday. The rejection comes in spite of two major changes to the initial hostile takeover offer, with the Aer Lingus Chairman Colm Barrington dismissing the offer as "nothing new".
31 August 2010
Examiner Appointed To Aer Arann
The High Court has appointed an Examiner for troubled airline, Aer Arann. Aer Arann said it intends to operate normally during the period of examinership and intends to fly all Aer Arann services and all Aer Lingus Regional services operated under the airline’s franchise agreement with Aer Lingus.
Examiner Appointed To Aer Arann
The High Court has appointed an Examiner for troubled airline, Aer Arann. Aer Arann said it intends to operate normally during the period of examinership and intends to fly all Aer Arann services and all Aer Lingus Regional services operated under the airline’s franchise agreement with Aer Lingus.
21 October 2009
Aer Lingus Should Merge – But Not With Ryanair
A former Aer Lingus chief executive has said the future of the airline can only be secured if it merges with another airline – as long as that airline isn't Ryanair.
Aer Lingus Should Merge – But Not With Ryanair
A former Aer Lingus chief executive has said the future of the airline can only be secured if it merges with another airline – as long as that airline isn't Ryanair.
18 May 2009
Aer Lingus Dismisses 'Bankrupt' Claim
A senior executive at the troubled former state airline, Aer Lingus, has dismissed claims by Ryanair Chief Executive Michael O'Leary that the former flag carrier would be bankrupt within 18 months.
Aer Lingus Dismisses 'Bankrupt' Claim
A senior executive at the troubled former state airline, Aer Lingus, has dismissed claims by Ryanair Chief Executive Michael O'Leary that the former flag carrier would be bankrupt within 18 months.
-
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.
