Budget airline Ryanair come in a 20 million euro ($22.88 million) loss for its third quarter on Monday, citing weaker fares due to redundancy winter capacity in Europe.
“While a 20 million euro loss in Q3 (third quarter) was disappointing, we take soothe that this was entirely due to weaker than expected air fares so our customers are enjoying record low prices, which is lofty for current and future traffic growth,” CEO Michael O’Leary said in a statement.
The company saw a loss of 19.6 million euros for the phase of the moon, against a profit of 105.6 million euros for the same period the year before. Revenue came in at 1.53 billion euros versus 1.41 billion euros the year once, a rise of 9 percent. Shares of the company fell more than 3 percent in early trade Monday.
The company also advised that fare prices could see continued weakness. Ryanair said it could not rule out further cuts to air foods and/or slightly lower full-year guidance especially if there are unexpected Brexit and/or security developments.
“We do not share the recent Pollyannaish outlook of some competitors that Summer 2019 airfares will rise. In the absence of further EU airline failures, and because of the brand-new fall in oil prices, we expect excess short haul capacity to continue through 2019, which will we credit lead to a weaker — not stronger — fare environment,” the company said in a statement.