Published on Monday, February 4, 2019

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.

Story Image

Your Comments

, be the first to post a comment.
Your email:

Email other comments made to this story

NOTE: Comments are subject to admin approval before being posted.
  • Ryanair will always be successful

    People hate Ryanair, however, they would sell their own grandmother for a cheap fare. That's why Ryanair will always be successful, no matter how draconian their rules.

    By eamon myler, Wednesday, February 20, 2019

  • Where did the extra pax come from?

    If this loss was self-inflicted, it certainly didn't come from the public refusing to fly with them. I'd like to have 8% more customers than 12 months ago!

    By Peter Lewis, Monday, February 4, 2019

  • Self inflicted

    They don"t seem to think of the impact all those cancelled flights had in their business. Along with their strange baggage charging and seat allocation process. A lot of this is self inflicted due to lack of trust by the public.

    By terry currie, Monday, February 4, 2019

Mole Poll
InteleTravel boss: 'We're not disruptors' - Do you think they are ?
NO 50.77 %
YES 49.23 %

Thank you for your vote

Move scroll bar (above) left to right for more videos!