RYANAIR MAINTAINS FULL YEAR PROFIT GUIDANCE DESPITE DISAPPOINTING THIRD QUARTER RESULTS - Ryanair has reported what it called a 'disappointing' €10.3m loss for the three month period from October to December. But it says it will hold on to its previous guidance that for the full year - to the end of March - it will report a net profit of between €380m and €400m after tax.
Ryanair's deputy chief executive and chief financial officer, Howard Millar, says that during the three month period the airline was forced to cancel 3,000 flights due to snow and air traffic control strikes in Europe. This compares to a total of 1,400 flights cancelled in the whole of the previous year. Mr Millar says that Ryanair fares are up 15% on average, but that is due to the fact that the airline is now flying much further afield. He points out that the average fare in 2007 was €45 while this year it is only €34.
On the Aer Lingus cabin crew dispute, Mr Millar says that Ryanair will continue to lease planes to its rival as it supports Aer Lingus management's efforts to bring down costs at the airline. He says that 95% of Aer Lingus staff supports the Greenfield cost cutting programme and they can not be allowed to stand in the way of progress as the airline tries to cut costs - a move it urgently needs.
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MORNING BRIEFS - Britain could start selling its £46 billion sterling stake in Royal Bank of Scotland early next year, the Financial Times said today citing bosses at the bailed-out lender. Some officials at the bank believe a first tranche of about £5 billion could be offered, the newspaper reported. UK Financial Investments (UKFI), the body managing Britain's £67 billion bank stakes, is not expected to sell them until they are in profit, and not before an independent commission has released a September report on whether banks should be broken up or weakened to improve competition.
*** The Nikkei index of Japanese shares closed almost 1.2% lower on fears those deadly protests in Egypt could turn into a much larger regional crisis and cause disruption to the oil supply. In Asia, stocks in Indonesia and the Philippines were the hardest hit, with benchmark indexes falling 2.1% and 2.6%, respectively. Egyptian markets and banks are closed today.
*** US crude for March delivery was trading at around $90 a barrel after hitting a high of $90.87 a barrel early in the session. Focus would likely be on Brent futures though, where the lead month contract was trading just shy of $100 a barrel. Analysts are worried that the current turmoil in Egypt could spread to other Middle East countries, including even Saudi Arabia. Egypt controls the Suez Canal and the Suez-Mediterranean pipeline, which between them moved more than 2 million barrels per day of crude and oil products in 2009.
*** On the currency markets, the euro is worth $1.3610 US cents and 85.73 pence sterling.
