Ryanair on course to break-even in FY08/09, but more industry-wide turbulence ahead

Ryanair stated its outlook for the financial year ending 31-Mar-09 remains “largely unchanged”, although it expects to break-even if oil prices average USD100 per barrel this Northern Winter. This represents an improvement from the previously forecast (in Jul-08) of “break-even to minus EUR60 million”, but could be prematurely optimistic, given the big spike in global oil prices in the past week. [1357 words]

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This report contains the following subheadings:

• Expects more airline bankruptcies "in the coming weeks"
• Sees chance of Aer Lingus acquisition boosted by Europe consolidation trend
• Focused on continued cost-cutting efforts
• Postpones the opening of Reus base due to Boeing strike action
• Capacity growth of approximately 14% planned for FY08/09
• Outlook: Tough conditions in European market, but opportunities exist for Ryanair

This report contains the following charts and tables:

• Ryanair profit matrix
• Major Ryanair fare sales: 04-Jun-08 to 16-Sep-08
• Ryanair passenger growth forecast (4Q08 vs 1Q09 forecast): FY07 to FY12F