Ryanair blames overcapacity after rare fall in quarterly profit
Budget airline warns of more tough trading but manages to secure CEO Michael O’Leary for another five years
Dublin — A 6% drop in fares plunged Ryanair to its first quarterly loss since 2014 and Europe’s biggest budget airline said overcapacity was likely to continue driving ticket prices lower, albeit at a slower pace. Monday’s warning of more tough trading came as the Irish company said it had secured the services of its long-standing CEO, Michael O’Leary, for another five years. He said in September 2018 he was not sure about committing to another five-year contract. The 57-year-old, who has led Ryanair for the past 25 years, will move to be CEO of a new group structure, overseeing the firm’s four airline subsidiaries. The weak third-quarter performance was flagged two weeks ago when Ryanair cut its profit forecast for the year ending March 2019 for the second time in three months, and the airline reiterated on Monday it could not rule out a further downgrade, noting possible uncertainty from Brexit. The firm said recent falls in oil prices would allow loss-making rivals to survive lon...
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