Ryanair, Europe”s largest low cost carrier, has modified the forecast for its 2008 results.
Previously the airline said its results would be ”break even to minus ”60m”.
But at its AGM in Dublin yesterday (September 18), it revised the forecast to ”breakeven”.
Ryanair said the improvement was due to a fall in the price of oil from $130 a barrel to $100.
It said that it expects to pay less for oil in the fourth quarter.
But it warned that ”these savings may well be eaten up by lower yields this winter as the UK, Irish and European economies go into recession and consumer confidence plummets.”
At the meeting, Michael O”Leary, Ryanair”s ceo, predicted that more airlines would go broke this winter.
Smaller national carriers, he said, would merge into groupings led by three ”higher fare airlines” BA, Lufthansa and Air France KLM.
He said these mergers would be ”rubber-stamped” by the European Commission.
This would help Ryanair”s appeal against the rejection of its take over for Aer Lingus, Mr O”Leary said.
He said Aer Lingus was ”far too small to survive as an independent regional airline, and we believe its future can best be secured as part of one strong Irish airline group.”
Visit www.ryanair.com.
Stanley Slaughter
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