Ryanair announces 60Mil projected losses.

[Tizona]

Shares of Europe's leading low-cost airline, Ryanair, plummeted on Monday after it warned that it may post a loss for the fiscal year as the Irish airline said the outlook on both fares and fuel prices remains "poor." The numbers were so bleak that the airlines shares lost 24% in early trading. Analysts had anticipated a profit of 125 million euros for the year.

So, are the chickens coming home to roost finally? O'Leary brass necked it last year and refused to hedge. Whoops, big mistake. His competition all hedged, he took the full impact of oil price rises.

Now he has hedged for 2 quarters - just as oil prices start to fall. Double whammy. Called it wrong again!

When will the halo slip around O'Learys neck and finally strangle him?

http://www.marketwatch.com/news/stor...%7D&dist=msr_3

[FutureChiefJustice]

O'Leary is an excellent businessman, despite being a not very likable person. He made Ryanair what it is by thinking outside the box, and forcing aer lingus to play the game on his terms which is of great benefit to the Irish consumer. I think he will come out smiling at the other side of this recession/oil crisis. If it doesn't happen like he sees it, he won't and he won't expect any sympathy either.

[David Cochrane]

One of the clever things that Ryanair has done in the past is hedging on the price of oil.

In the past, Ryanair has hedged on oil at $73 and $74 a barrel. However there is no hedging at present, meaning the huge costs associated with fuel.

Ryanair consistently refuses to introduce a fuel surcharge.

[greengoose]

Let us see how well the competition is doing.

[rockyracoon]

We all know his compay's main aim is to get as many bums on seats as possible. However, given that fuel prices are an airline's biggest variable cost, you would have thought Ryan would have had a fairly decent economic and fuel analysis sytem in place. Ryan air will need to invest in the analytical area as the volatility of future fuel prices will most likely remain.

Ryan air has a proven business model which no doubt will see them through the current fuel price storm and may indeed leave them with fewer competitors in the future.

You just have to wonder, given the likely rise in fuel prices in the future, what will constitute a low fare airline.

[johnfás]

Ryanair consistently refuses to introduce a fuel surcharge.

An overt one anyway. But continuous increases in checking in costs, credit card fees and so on directly in line with increases in fuel, really are a fuel surcharge but in name.

[FutureChiefJustice]

Let us see how well the competition is doing.

Thats what consumers will be saying aswell. There is a bit of a (justified?) stigma about Ryanair in that consumers expect an initial low-fare, but then to be crucified on baggage charges any other extra charges the airline can claim to make. Given this, people might automatically expect them to be the first off the block in introducing a fuel surcharge. So O'Leary is possibly trying to alter the public perception of Ryanair (short of him stepping down as CEO, of course) and trying to say to people "look, we would be justified in hiking up prices, but we're not a big evil corporation and everything we do is actually in your interest whether you like me personally or not." I'd be very surprised if this does not resonate positively with the flying public.

Also, lets see which competitors cancel their fuel surcharges when oil recedes back to or below $100 a barrel. If they don't, they will be leaving their customers ripe for O'Leary's picking.

[futurecouncillor]

The name of the thread is the worst case scenario for Ryanair with the company itself predicting final year results that come in between break-even and a loss of 60 million....

Ryanair are sitting on a mountain of cash so a loss of 60 million in the worst case will have very little impact on the company's balance sheet.

[David Cochrane]

We all know his compay's main aim is to get as many bums on seats as possible.

It's not you know, making money is their aim, getting as many bums on seats (getting maximum capacity) is a way to maximise profits per flight. But if they could make more money by flying their aircraft half full, they'd do that.

[meriwether]

[quote=johnfás]

Ryanair consistently refuses to introduce a fuel surcharge.

An overt one anyway. But continuous increases in checking in costs, credit card fees and so on directly in line with increases in fuel, really are a fuel surcharge but in name.[/quote:1h4p5rai]


Indeed. Let us take for example, checking in online.
I attempted to use this facility last March to save 2 x €4 fares. I arrived 2.5 hours before a 9am flight, only to be told I must check in manually, and pay the 8 lids. Online check-in ends 4 hours before the flight.

Now, I admit, I did not read the small print. Having done this before with Qantas, a man can arrive as per normal and slef check-in.

But then I had forgotten I was dealing with Ryanair.

they offer his concession, and make it as difficult as possible to abide by it.

Whi is going to arrive at 5am to save €4? Sure, you can, but its as undesirable as it could be.

And thats what they want.

Whe its all said and done, they offer the cheapest flights. But O'Leary is a tosser, being quite blunt.