RYANAIR UPS PROFIT FORECAST AS THIRD QUARTER LOSSES ARE SMALLER THAN EXPECTED - Ryanair this morning has increased its profit forecast for its full financial year to the end of March to €275m. That compares to its previous guidance of the lower end of the €200-€300m range. This morning it announced its third quarter results for the three months to the end of December and they show losses of just under €11m, while revenues were up just 1%. The airline had losses of almost €102m for the same three month period in 2008.
Ryanair's chief financial officer, Howard Millar, says that despite the losses of almost €11m, the airline had quite a good third quarter. In the three month period, it announced new routes and bases which performed a little better than expected. Mr Millar says the airline industry is still in the middle of a recession but says this presents it with great opportunities to increase its market share from its major competitors, BA, Air France and Lufthansa. He says that the consolidation process in the industry is going to continue, while capacity will continue to be reduced and cautions that it is really difficult to see an upturn in the market any time soon.
Ryanair's CFO denies that the airline's stake in Aer Lingus is a drain on its rival and says that another bid for Aer Lingus is not likely. He says Ryanair wants the Aer Lingus management to focus on producing a strategy that will lead to long-term shareholder value. He says that unless the airline gets an offer it can't refuse for its Aer Lingus shares, it will hold its current position.
***
MORNING BRIEFS - As Permanent TSB increases its variable mortgage interest rates today, homeowners are waiting to see what other lenders will shove up their standard variable rates in the coming days. AIB says nothing happening today, and there was no word from Bank of Ireland.
*** On the currency markets, the euro is worth $1.3884 and 87.05 pence sterling.
