Ryanair Holdings Raises Fiscal Year 2020 Guidance; Expects Laudamotion Loss to Widen
10 January 2020 - 7:02PM
Dow Jones News
By Anthony O. Goriainoff
Ryanair Holdings PLC (RYA.LN) said Friday that it was raising
its full-year guidance for fiscal 2020 on the back of stronger
trading over the Christmas period, but that Austrian subsidiary
Laudamotion has continued to underperform and that its loss for the
year is expected to widen.
The low-cost carrier said it now expects its profit after tax
for its fiscal year ending March 31 to be in the range of 950
million to 1.05 billion euros ($1.05 billion-$1.17 billion). Its
previous guidance was EUR800 million to EUR900 million. The company
said January to April forward bookings are running 1% ahead of the
same period last year and that it believes this will result in
better than expected average fares during the fourth quarter.
The airline said it expects full year passenger traffic to grow
to 154 million. It had previously guided for 153 million.
Ryanair said Laudamotion was still underperforming, with
lower-than-expected average fares over the Christmas season despite
strong traffic growth and high load factors. The company said this
was due to intense price competition with Deutsche Lufthansa AG
(LHA.XE)'s subsidiaries in both Germany and Austria. Laudamotion is
now expected to carry 6.5 million passengers in fiscal 2020, but
average fares will be EUR15 million below budget, resulting in a
widened net loss for the airline of about EUR90 million, Ryanair
said.
Write to Anthony O. Goriainoff at
anthony.orunagoriainoff@dowjones.com
(END) Dow Jones Newswires
January 10, 2020 02:47 ET (07:47 GMT)
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