Ryanair: quarter in the red, but outlook positive

(CercleFinance.com) - Ryanair has reported a heavy loss for its first fiscal quarter on Monday, despite a more than 16-fold increase in passenger traffic from one year to the next.


The net loss of Europe's largest low-cost airline reached 273 million euros in the three months to end-June, compared with a loss of 185 million euros a year ago.

Quarterly revenues more than doubled year-on-year from 125 million euros to 371 million euros, driven by traffic that reached 8.1 million passengers compared to just 500,000 a year ago.

However, its operating costs rose to 675 million euros in the quarter, compared with 313 million euros a year earlier, mainly due to the surge in oil prices in recent months.

If, as forecasts suggest, most of the European population is vaccinated by September, the company expects a strong recovery in air traffic in the second half of its fiscal year it said.

Investors clearly focused on these prospects, with the share taking off almost 4% on Monday morning after this publication, outperforming the European index of travel and air transport stocks, the STOXX Europe 600 Travel & Leisure (+0.8%).


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