Ryanair signs new five-year contract with O’Leary, despite falling into red

Lower airfares have led Ryanair to report a quarterly loss of €19.6m (£17.2m) and the airline has repeated its warning that Brexit uncertainty could hit further profits.

It’s the first time since March 2014 that the airline has posted a loss.

Despite the performance, Ryanair has agreed a new five-year contract with chief executive Michael O’Leary. The agreement takes him through to 2024.

The figures, for the three months to the end of December, compare to a profit of €105.6m (£92.4m) in the same period a year earlier.

During the period, passenger numbers grew, by 8% to 30.4 million, with revenues up 9% to £1.34bn. Average airfares fell 6%, while the airline saw staff costs increase.

O’Leary said: "While a €20m loss in Q3 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."

He added: "The risk of a no-deal Brexit remains worryingly high.

"While we hope that common sense will prevail, and lead either to 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."

The airline added it ‘did not share the recent optimistic outlook of some competitors that summer 2019 air fares will rise’, arguing the recent fall in oil prices would keep fares low.