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Ryanair today posted its first-reported annual loss, after a €222.5 million write down in the value of its stake in rival Aer Lingus was compounded by higher fuel bills.
Net profit at Europe's biggest low-cost carrier, taking out the effect of Aer Lingus's plunge in value, hit €105 million for the year to the end of March. In contrast to a bleak forecast from Virgin last week, and British Airways' refusal to give future guidance at its annual results, Ryanair expects to grow post-tax profit in this coming fiscal year to between €200 million-€300 million.
Chief executive Michael O'Leary said his cost-cutting price strategy would pay off in the year ahead. “In this recessionary environment we intend to continue to offer European consumers better value just like Aldi, Lidl, IKEA and McDonalds are doing in their respective industries,” he said.
Ryanair boosted the number of bums on seats by 15% this year, to 58.5 million. The airline laid out plans to grow that further to 67 million in the next 12 months by cutting average fares by up to 20%.
