Ryanair success stalls, first quarterly loss.

JetB · Post by **JetB** » 05 Feb 2004, 20:04

Ryanair success stalls as first quarterly loss looms

RYANAIR is set to record its first quarterly loss since it became a public company seven years ago.
A rapid drop in fares and passenger numbers is expected to push the company to a €10m loss in the three months to the end of March, the fourth quarter of the financial year. Michael O’Leary, Ryanair’s chief executive, yesterday admitted the quarter “could be loss-making”.

The company had forecast that yields in the fourth quarter would fall by 10-15%, but last week revised that forecast drastically downwards, saying it now expected a drop of 25-30%.

But Ray Webster, the chief executive of EasyJet, said his company was not suffering the pricing pressures reported by Ryanair. “We don’t see any problems at all,” he said.

In November, EasyJet forecast that it expected its yields for the first half of 2004 would be up on same period in 2003.

“I think what happened is that Michael (O’Leary) just put his foot on the gas too much last year. He needs to find another base like Stansted that can provide a lot of passengers,” he said.

O’Leary rejected the criticisms. He also rebuffed suggestions that the company needed to reform its corporate governance. “Those are the kind of questions you ask companies that are about to go bankrupt, not one that is making more than €200m a year in profit and has €1.1 billion in cash on its balance sheet.”

What can I say

L-1011 · Post by **L-1011** » 05 Feb 2004, 20:26

That was to be expected one day, but I thought it would not happen for a year or two

ciao,
TriStar

Avro · Post by **Avro** » 05 Feb 2004, 22:30

Well this show that Ryanair is a company like all others and can also make losses.

Should this be the begining of the end for FR's glory time

Only time will tell, but if they make a loss it could be possible.

Ciao
Chris
8)

JetB · Post by **JetB** » 06 Feb 2004, 08:25

A little quarterly loss for Ryanair, but they are also lucky today to have so much cash on there balance sheet. They have this money because they never pay out a dividend to there shareholders. It is crucial that Ryanair keeps there share price up, just because that is the only thing an investor can expect form Ryanair.

There share price going down last week was not a good start, also the uncertainty before the EU ruling didn't do any good to there shares. So what is going to happen when new investigations start ?.

There is an investigation of its Pau route, that would be a further blow to the company which stopped flights to Strasbourg in 2003 after a French court backed an Air France complaint. And a few have suggested that Ryanair agreements at Montpelier in France, Malaga in Spain and Pisa and Venice in Italy are also possible candidates for a complaint.

I'm just wondering how they are going to keep there investors happy and the share price up with so much trouble on the way.

We can give so many explanations but when Tony Ryan's children sold there shares two weeks ago, wasn't that a BIG warning ?.

JetB · Post by **JetB** » 06 Feb 2004, 10:51

And it just does not seem to stop......

Commission to examine Ryanair's 'wheelchair levy'

RYANAIR could face fresh legal action after the Disability Rights Commission confirmed that it was examining the legality of a 50p "wheelchair levy" the low-cost airline imposed on every ticket after losing a landmark legal case.

A318 · Post by **A318** » 06 Feb 2004, 11:52

I have to agree that after my EZY flight I can imagine more people will see the difference......BUT is also very clear that everybody is seeking for cases against Ryanair which is also not correct in my opinion. They did something wrong, have to pay the bill for it and that's it. Starting about the €0.50,- they add to finance the wheelchairs is no reason for a court case since other airlines probably already calculated those costs in the price of a ticket. You can not keep on attacking a company over and over again since this will destroy every company on the end. If that is there main goal a lot of people in the aviation will again loose their jobs and I don't want to see that also. They payed the price now let them develop again but without the subsidies.

Greetz,

Erwin

JetB · Post by **JetB** » 06 Feb 2004, 12:30

Ohhhh I feel so bad for Ryanair.....NOT !!!!

Keep in mind that it is Ryanair appealing the courts decision. I find that very disrespectful and insulting there disabled passengers.
I fully agree with the disability rights commission that they take necessary steps, especially because the 50p doesn't represent the real cost to finance the wheelchairs.

Michael O'Leary should be into sports, he doesn't except losing. He would be a great trainer, Ireland would only win gold at the Olympics. You have to admire the guy for believing in his product and fighting till the end.

But in the airline industry you also have to make decisions that cost you money, but also makes customers respect your business, its all about customer service. You have to let go after losing a battle, that way minimize damages to your image and company, something Ryanair cant do !.

This is the first quarter ever that Ryanair is losing money, let it be there last. But also change your views Ryanair and understand that you work in a customer service related environment.

A318 · Post by **A318** » 06 Feb 2004, 17:13

BobClaes, you really make it an art to attack Ryanair.
I should write a book, never fly with them again, put a wooden anti Ryanair plate around your neck and stand in front of CRL airport. Buy some sprays with blue and lila paint, spray your car or bicycle in SNBA colours, drive thru Brussels and spread you anti word.

You have to let go after losing a battle, that way minimize damages to your image and company, something Ryanair cant do !.

You could give them a hand since you can not stop also. Almost every opened topic by you is about Ryanair, you news submitions are almost all the time about Ryanair, who is a bad loser here? You BobClaes, they went to court, received the bill and pay it, simple as that. Now please reduce or better stop your anti Ryanair propaganda since it is not funny anymore to read the same over and over again. Oh and before you start your famous and well known attack to me again.......I will be the wise one here or if you prefer it in your words the soft one

Think before you write back since then it fits better in this topic

Greetz,

Erwin

JetB · Post by **JetB** » 06 Feb 2004, 17:48

Oh boy, Erwin.....

I started reading from the top to see if I was so negative. Personally I don't think so, I am very critical and give the facts, and to be honest to facts are not so nice lately. This is one topic where I did not give my personal opinion so much, I only used a few press releases and gave the facts.

Ryanair did not pay and move on, they APPEALED.... I don't think I have to explain that to you, do I ?.

Maybe I have to ask the administrator to see if my news submissions are mostly about Ryanair. But I don't think so... Ryanair is in the news you know.... And on top I don't make the news, so when I submit something negative or positive, thats not me making something up.

I'm sorry that you like to see and hear that Ryan is doing good, but they are not and thats just a fact.

And nobody is forcing you to read my reply's, you don't even have to answer. Like everywhere there has to be a balance, and if I let you do your thing here....?????

Furthermore I have no connections with SN maybe Virgin and I gave my negative opinion about there "Belgium Best Value" this week.....

But anyway, maybe I have to help Ryanair out, just once.... I was thinking about booking a flight to Gerona. So cheap but I have to hurry before they charge me 6 to 8 euro more.

A318 · Post by **A318** » 06 Feb 2004, 17:54

Don't forget to add €0.50 cent for wheelchair support!!!
I would hate to see you would get upset by the "high" ticket price

Have a nice trip and think of me at TO

Greetz,

Erwin

muggins · Post by **muggins** » 06 Feb 2004, 19:00

A *possible* loss of 10 million Euros during the quietest quarter of the year (based on projections and speculation?) and only 1.1 billion Euros of cash left in the piggy bank.

The company is on its knees and is clearly doomed... I wouldn't expect them to last more than a couple of months at this rate.

Yes, definitely time to sell your shares.

JetB · Post by **JetB** » 06 Feb 2004, 19:19

Is somebody being sarcastic here

Hope they last longer, I am thinking about booking a flight to Gerona

L-1011 · Post by **L-1011** » 06 Feb 2004, 20:36

muggins wrote: Yes, definitely time to sell your shares.

Already too late. You have to sell before the boat sinks, but now it's already sinking. All you can do now is either wait to see if a recovery mission is possible, or you jump over board loosing money:!:

ciao,
TriStar

P.S.: Welcome on luchtzak muggins

Avro · Post by **Avro** » 06 Feb 2004, 22:10

Concerning the Weelchair issue, I hope they will be forced to stop this discrimination towards a certain category of the population.

It's about time they realize that low fares isn't the only think making an airline run. You also have to be friendly to the people who want to travel with you.

BobClaes wrote: Hope they last longer, I am thinking about booking a flight to Gerona

You'll have to hurry

Ciao
Chris
8)

PS: Welcome muggins

A318 · Post by **A318** » 07 Feb 2004, 15:52

L-1011 wrote:Already too late. You have to sell before the boat sinks, but now it's already sinking.
ciao,
TriStar

All the time I thought Ryanair was an airline but now you tell me it is a boat???
So LCC is actually Low Cost Cruises?
Now I know why RYR was so much different then EZY and why there was a "captain" on board, poor sailors

Greetz,

Erwin

JetB · Post by **JetB** » 07 Feb 2004, 17:49

Anyway, new member " muggins " I like to welcome you for becoming a luchtzak member, and thank you for your nice first sarcastic post !
Its all about first impressions, isn't it ? :thumbsup2: .

Hey, hey hey.... don't be a cat now and scratch my eyes out :devil2: . Hope we can get an introduction from you soon, its always nice to know who we are talking to.

Welcome anyway :kvole:

L-1011 · Post by **L-1011** » 07 Feb 2004, 22:18

A318 wrote: All the time I thought Ryanair was an airline but now you tell me it is a boat???
So LCC is actually Low Cost Cruises?
Now I know why RYR was so much different then EZY and why there was a "captain" on board, poor sailors

I really enjoyed your reaction to my post

, I did not think about the words I used when I wrote it, but actually it fitted somehow

ciao,
TriStar

OO-SBZ · Post by **OO-SBZ** » 08 Feb 2004, 00:08

BobClaes wrote:Hope they last longer, I am thinking about booking a flight to Gerona

Bob, are you trying to be on the last Ryanair flight?

Regards

BeN

JetB · Post by **JetB** » 09 Feb 2004, 14:20

Ryanair is going to stay around, and why shouldn't they !. There is a market for there product.
The only thing I regret is the way they communicate and the disrespect they show over and over again.
This is something I found on there site :

PROTECT YOUR RIGHT TO LOW FARES

The ruling by the EU in the Charleroi case has banned low fares. This damaging ruling also risks the viability of many current low fare routes around Europe. We are calling on all of our customers to tell your national Commissioner(s) and Transport Minister what you think of this anti-competitive and anti-consumer decision. The Commission has completely ignored the interests of competition and consumers in this decision and has opted to protect the vested interests of their high charging national airlines.

Please contact your Transport Ministers and Commissioner(s) and give them a piece of your mind.

United Kingdom

E-Mail: Alistair.Darling@dft.gsi.gov.uk
E-Mail: Neil.Kinnock@cec.eu.int
Chris Patten - European Commissioner
E-Mail: Christopher.Patten@cec.eu.int

Ireland

E-Mail: minister@transport.ie
David Byrne - European Commission
E-Mail: David.Byrne@cec.eu.int

I don't understand why Ryanair is publishing this information, especially since Ryanair is the only airline in the industry you CANT contact (Call direct / Email). So if you give out personal information, please expose yourself...

I mailed these people to thank them for there balanced ruling and to keep up the good work. I suggest everybody does the same, and who has the personal CONTACT INFORMATION for Mister O'Leary ????? Since it OK to send people unwanted mail I guess its OK to do the same to Mister O'Leary. Who can expose Ryanairs most secret contact information ????

A318 · Post by **A318** » 09 Feb 2004, 18:14

BobClaes, that is a good point from you, I saw these anouncements also and when you check the news in the dutch language you will see they publiced also the email addresses from people in Belgium and Luxembourg. In my opinion an airline should have an email address for customer service but Ryanair hasn't. At least people could show them their respect or show them what they can change to their service. This is really something wrong from Ryanair!
ps. Bob, call the newspaper since we finally agree on something

Greetz,

Erwin