Ryanair Reports $22 Million Loss as Brexit Hardships Loom

Feb 5, 2019

This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.

Irish ultra-low-cost carrier Ryanair reported a €19.6 million ($22.4 million USD) profit loss for the third quarter of 2018. Ryanair also painted a bleak outlook for future earnings with Brexit complications looming over the industry, calling risks from a no-deal Brexit “worryingly high.”

Blaming low fares on the stiff competition throughout the European market, the Dublin-based airline said that ticket prices were likely to remain low as fuel prices continue to fall and boost faltering budget airlines to remain in business and add competition.

“While a €20 million loss in Q3 was disappointing, we take comfort that this was entirely due to weaker than expected airfares, so our customers are enjoying record low prices, which is good for current and future traffic growth,” Ryanair CEO Michael O’Leary said of the earnings report, according to Sky News.

The earnings loss happened even though Ryanair added 8% more passengers for a total of 30.4 million. It remains the largest European airline by passengers carried. But, at the same time, “excess winter capacity in Europe” caused fare prices to drop by 6%, and the airline said its year-end earnings will likely take a toll due to the dip in fare prices.

Also potentially hurting future profits: Brexit.

“The risk of a no-deal Brexit remains worryingly high,” O’Leary said. “While we hope that common sense will prevail, and lead either to a delay in Brexit, or agreement on the 21-month transition deal currently on the table, we have taken all necessary steps to protect Ryanair’s business in a no-deal environment.”

One of those precautions includes a UK-based arm of the airline, Ryanair UK, that can continue to operate flights within the UK and to destinations around the European Union in a post-Brexit world.

Featured image by ALBERTO PIZZOLI/AFP/Getty Images.

Chase Sapphire Preferred® Card

WELCOME OFFER: 80,000 Points


CARD HIGHLIGHTS: 2X points on all travel and dining, points transferrable to over a dozen travel partners

*Bonus value is an estimated value calculated by TPG and not the card issuer. View our latest valuations here.

Apply Now
More Things to Know
  • Earn 80,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $1,000 when you redeem through Chase Ultimate Rewards®. Plus earn up to $50 in statement credits towards grocery store purchases within your first year of account opening.
  • Earn 2X points on dining including eligible delivery services, takeout and dining out and travel. Plus, earn 1 point per dollar spent on all other purchases.
  • Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards®. For example, 80,000 points are worth $1,000 toward travel.
  • With Pay Yourself Back℠, your points are worth 25% more during the current offer when you redeem them for statement credits against existing purchases in select, rotating categories.
  • Get unlimited deliveries with a $0 delivery fee and reduced service fees on eligible orders over $12 for a minimum of one year with DashPass, DoorDash's subscription service. Activate by 12/31/21.
  • Count on Trip Cancellation/Interruption Insurance, Auto Rental Collision Damage Waiver, Lost Luggage Insurance and more.
  • Get up to $60 back on an eligible Peloton Digital or All-Access Membership through 12/31/2021, and get full access to their workout library through the Peloton app, including cardio, running, strength, yoga, and more. Take classes using a phone, tablet, or TV. No fitness equipment is required.
Regular APR
15.99%-22.99% Variable
Annual Fee
Balance Transfer Fee
Either $5 or 5% of the amount of each transfer, whichever is greater.
Recommended Credit

Editorial Disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

Disclaimer: The responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.