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Ryanair posts Q3 loss, O & # 39; Leary to stay for 5 years



Ryanair reported a loss of 19.6 million euros for the third quarter of 2018, referring to weaker than expected flight rates among the challenges, and down from profits of 105.6 million at the same time last year.

The airline said it flew 32.7 million customers in the quarter, an increase of 8%, and revenue of € 1.53 billion – up nearly 10%.

However, excess winter capacity in Europe decreased by 6% in average prices, while the airline also had to meet higher fuel, staff and compensation costs.

Ryanair said the loss did not account for € 46.5m it spent on buying the remaining 25% of the budget airline Laudamotion.

"While a loss of 20 million euros in the third quarter was disappointing, we assumed that this was entirely due to weaker than expected flight prices, so our customers enjoy record low prices, which is good for current and future traffic growth "Ryanair CEO Michael O & # 39; Leary.

" While additional revenues have been strong, 26% increased In Q3, this was offset by higher fuel, staff and EU261

compensation costs, CEO said.

Shares in the airline were lower in Dublin trading this morning.

In the performance reporting, Ryanair said that "Michael O & # 39; Leary has agreed a new five-year CEO's contract."

"His agreement to commit to a five-year period is welcome and will provide security to our shareholders and provide him opportunity to lead the individual CEOs of Ryanair, Laudamotion and Ryanair Sun, "Ryanair said.

Meanwhile, the air line said that chairman David Bonderman has agreed to stay for one year until summer 2020, but will not be considered for re-election at the company's general meeting in September 2020.

Ryanair's leader David Bonderman

It said that in order to ensure a steady success, Stan McCarthy, who joined the Ryanair Board in May 2017, will take the position of Deputy Chairman of April and will move to chairman summer 2020.

"Stan will bring his enormous international experience (as former CEO of Kerry Group) and leadership skills for the development of Ryanair Holdings in the coming years, although a legend like David Bonderman will be a very difficult act to follow, says Ryanair.

Incoming Ryanair leader Stan McCarthy [19659012] Airline director Kyran McLaughlin also said he would not resurrect at the company's general meeting in September 2020.

Weak prices had led the company to two UK is since to cut the annual profit forecast for the second time in three months.

Ryanair expects this year's profit to end by March by up to 31% due to a mix of summer strikes, higher oil prices and short overcapacity in Europe.

It repeated today that it could not rule out further downgrading.

Europe's largest low-cost operator, making most of its profits in the summer, said it expected the continued short-term overcapacity to lead to a weaker – not stronger – ticket environment.

"We do not share the latest optimistic outlook for some competitors that summer 2019 air fares will rise," said the airline in the income statement.

"In the absence of further EU refugees, and because of the recent decline in oil prices (which allows losing competitors to survive longer), we expect the overcapacity to continue through 2019," it adds.

Ryanair said in its earnings statement last month that prices in the second half of the fiscal year were set to fall by 7%, rather than the 2% previously flagged.

At Brexit, Michael O & # 39; Leary said the risk of a departure without a departure remains worryingly high.

"While we hope common sense will prevail and lead to either a delay in Brexit, or an agreement on the 21-month transitional agreement on the table, we have taken all necessary steps to protect Ryanair's business in a non- agreement environment, he says.

Ryanair said it has achieved a UK AOC to protect its three domestic British routes.

"We will limit voting rights and divest non-EU shareholders over a period of time ( in case of a hard Brexit) to ensure that Ryanair is always an EU-owned and EU-controlled airline, even though the UK leaves the EU without an agreement, says O & # 39; Leary.

The airline company today also announced a restructuring of the group that will have four airline subsidiaries. Ryanair said the new structure will not be different from IAG, which owns Aer Lingus.

Over the next 12 months, a small senior management will oversee the development of four airline subsidiaries, Ryanair DAC, Laudamotion, Ryanair Sun and Ryanair UK, each with their own CEOs and management team, said it. [19659002] Ryanair said that Michael O & # 39; Leary will become CEO, a role in which he will concentrate on the development of the group.

A replaced CEO of Ryanair DAC, who will work with the CEOs of Laudamotion and Ryanair Sun, will be appointed later this year.

Meanwhile, Ryanair said its passenger number in January increased by 7% in January to 10 million, up from 9.3 million the same month last year.

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