Ryanair reduced its third quarter losses by €1 million to €10 million euros as fares increased by 15%.
The no-frills carrier saw passenger numbers for the three months to December 31 rise by 6% to 17 million despite bad weather and air traffic control strikes which led to more than 3,000 flights being cancelled – more than double the whole of the previous year.
The carrier said it expected full year profits to remain course at between €380 million-€400 million after tax. Revenues in the quarter grew by 22% to €746 million but unit costs went up by 15% due to a 14% increase in flight hours as average flight sectors lengths rose by 7%. Ancillary revenues grew by 20% in the three months.
Reviewing the quarter, chief executive Michael O’Leary said: “It would appear that the short-haul fuel surcharges imposed by many of Europe’s flag carriers, allied to the high and rising fares charged by some of our not so low fare competitors, is creating opportunities for Ryanair to grow, even during the Winter period, at slightly higher fares.”
Although oil prices have risen significantly in recent months, Ryanair continues to benefit from a favourable fuel hedging strategy, he added.
O’Leary called for an overhaul over European regulations governing airlines when faced with disruption outside their control.
“It is inequitable to force airlines to pay for right to care or compensation in circumstances where widespread flight cancellations are caused by ATC strikes, or by airports failure to keep their runways open during periods of adverse weather,” he said.
“It is inequitable that airports enjoy a boost to their restaurant and retail revenues from stranded passengers when their runways close, yet the airlines are obliged to pay for meals, drinks and hotels, when these cancellations are outside of our control.
“It is discriminatory that the EU regulations for competing train, ferry and coach operators, exonerate these transport providers from liability during force majeure cases, yet they oblige airlines to pay these right to care costs in similar circumstances. Airlines should not be liable for cancellations and delays that are outside of their control.”
He said the airline believed the EU261 regulations are “unlawful”. “We look forward to challenging these unfair and discriminatory regulations in the European courts,” added O’Leary.