Ryanair Report £145m Loss, First In 20 Years

Ryanair pledged to continue slashing passenger prices – despite profits nose-diving £145.9 million into the red during the year to March.

The losses came after the low-cost airline – led by flamboyant boss Michael O’Leary – that saw its annual fuel bill exceed £1billion after a 59 per cent hike in the wake of record oil prices.

Unlike airlines such as British Airways, Ryanair refused to impose fuel surcharges on its passengers. The dramatic loss compares with a profit of £336.8 million the previous year.

Even with the £145m loss Ryanair can still claim bragging rights as Europe’s most valuable airline, despite its first loss in 20 years.

The airline’s market capitalisation has reached €5.3 billion. This compares with Lufthansa, the German flag carrier, worth €4.5 billion, and Air France, worth €3.4 billion. British Airways’ market capitalisation is about £1.8 billion.

On the basis of these figures, Mr O’Leary claimed provocatively that Ryanair would launch a takeover bid for Lufthansa: “We are having a serious look at Lufthansa,” he said. “We could almost buy it for cash.”

He added later: “That should have them choking on their cornflakes in Frankfurt tomorrow morning.”

The cost of Ryanair ‘extras’ is expected to soar and the company has imposed as series of no-frills charges – such as for baggage and even check-in.

A threat by Mr O’Leary to charge passengers £1 to spend a penny in the in-flight toilets was subsequently withdrawn.

Posted on June 3, 2009 | Filed Under Travel

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