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| Ryanair makes loss as low fares and weak sterling hit | Ryanair makes loss as low fares and weak sterling hit |
| (35 minutes later) | |
| Ryanair made a loss in the final three months of last year as lower fares and the weakness of sterling against the euro hurt trading. | |
| The no-frills airline said average fares were 9% lower leading to a 35m euro (£28.8m) loss for the quarter. | The no-frills airline said average fares were 9% lower leading to a 35m euro (£28.8m) loss for the quarter. |
| The fall came despite a 6% rise in passenger numbers, which chief executive Michael O'Leary attributed to seat promotions and lower fares. | The fall came despite a 6% rise in passenger numbers, which chief executive Michael O'Leary attributed to seat promotions and lower fares. |
| "Our Q3 loss of 35m euros is in line with previous guidance," he added. | "Our Q3 loss of 35m euros is in line with previous guidance," he added. |
| Despite the profit drop, the airline said "ancillary" revenues - which include reserved seating, priority boarding and credit card fees - rose by 13%. | Despite the profit drop, the airline said "ancillary" revenues - which include reserved seating, priority boarding and credit card fees - rose by 13%. |
| Ryanair said bookings in the fourth quarter were "significantly" ahead of last year, but prices were still weaker. | Ryanair said bookings in the fourth quarter were "significantly" ahead of last year, but prices were still weaker. |
| In November, the company warned full-year profits to the end of this financial year were likely to be down on last year - a first annual profits fall in five years. | In November, the company warned full-year profits to the end of this financial year were likely to be down on last year - a first annual profits fall in five years. |
| New attitude | |
| Ryanair said it had now finished implementing a series of initiatives aimed at improving passenger experience, including a free small second carry-on bag, a 24-hour grace period to correct minor booking errors and reduced boarding card and airport and bag frees. | |
| It said it also now had allocated seating on all flights, charging passengers five euros to select their preferred seat. It said uptake of this had "grown significantly". | |
| "It now appears that sales of reserved/allocated seats will exceed the revenue loss from cutting airport and bag fees," it said. | |
| In September, Ryanair pledged to reform its "abrupt culture", following shareholder concerns that customer service issues were hitting sales. |