Ryanair Makes Strong Comeback at the End of 2009
Abi BrayThe well known budget carrier Ryanair has just recently announced that it was able to reduce its Q3 losses in 2009 to just €11 million. This is an amout that is down from the €102 million losses that were seen in the third quarter of 2008. Between September and December of 2009, Ryanair also saw a nice increase in passengers by 14 percent when compared to a year earlier. Although Ryanair saw a nice increase in passengers, the revenue for the airline only increased by 1 percent.
The CEO of Ryanair, Michael O’Leary, said that their Q3 loss of €11 million is disappointing, although better than expected. It’s also a significant improvement over the year before that. O’Leary continued that Ancillary revenues grew by 6 percent. This is a slower growth than that of passenger volume due to the changes in consumer behavior.
Either way, O’Leary predicted that Ryanair would increase market shares over the next two years. He said that this increase will be a result of airline consolidation and airports competing against each other to win Ryanair’s growth. He predicted a traffic growth of about 10 percent for 2011. Michael O’Leary went on to say that market conditions remain difficult. Either way Ryanair expects its market shares to grow in the coming years. This goes double for areas like Italy, Scandinavia, Spain, and the UK.
Experts have claimed that this could be a much better year for the airline industry. However, they have also pointed out that airlines have to be careful. Although things could be improving, the market is still very fragile, meaning that even small increases in prices and fees could lead to another decline in passenger numbers.
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Filed under Business & Finance, Travel News, UK News