Ryanair narrows losses, raises profits forecast

Irish no-frills airline Ryanair yesterday said its third quarter net losses narrowed to about €11 million as a drop in fuel costs offset a decline in average fares.

Looking to benefit from industry consolidation and the collapse of budget rivals, Ryanair raised its 2009/10 profit forecast and said it aimed to increase passenger numbers by 10 per cent in 2011.

The net loss narrowed to €10.9 million in the three months to last December from a loss of €118.8 million in same period a year earlier.

"Our (third quarter) loss of €11 million is disappointing although better than expected and a significant improvement on last year's," Ryanair chief executive officer Michael O'Leary said in the airline's earnings statement.

"These numbers are distorted by a 37 per cent fall in fuel costs which offset a 12 per cent decline in average fares." Ryanair said it had increased its full-year net profit forecast to €275 million from the lower end of a previous estimate of between €200 and €300 million.