Snow and strikes hit Ryanair as Michael O'Leary attacks refund rules

NO-FRILLS airline Ryanair suffered a loss in the final three months of last year as snow chaos and air traffic control strikes forced it to cancel more than 3,000 flights.

Europe's largest carrier had been hoping to break even during the period - the third quarter of its financial year - but the Arctic conditions and walk-outs pushed it into a €10.3 million (8.8m) net loss.

Ryanair's outspoken chief executive Michael O'Leary said the 3,000-odd cancelled flights compared to 1,400 during the whole of the previous fiscal year.

He hit out at European regulations, which require airlines to compensate passengers in the event of cancellations.

O'Leary said: "This small third-quarter loss of €10m is disappointing, as we were on track to break even, but earnings were hit by a series of air traffic control strikes in the third quarter, compounded by a spate of bad weather airport closures in December.

"It is inequitable that airports enjoy a boost to their restaurant and retail revenues from stranded passengers when their runways close, yet the airlines are obliged to pay for meals, drinks and hotels, when these cancellations are outside our control." Ryanair also endured a 37 per cent rise in its third-quarter fuel bill but O'Leary said he was confident that full-year net profits would be at the upper end of the group's €380m-400m forecast.

The firm managed to increased "ancillary revenues" - such as in-flight refreshment and entertainment sales - by almost 20 per cent compared with the same period in 2009.

The average fare also rose, to €34, an increase of 15 per cent, while passenger numbers were up 6 per cent.

Andrew Fitchie, transport analyst at Investec, said the Ryanair update provided "confidence" that low-cost carriers could continue to grow despite falling consumer confidence in the economy.

"The release highlights that the low-cost market remains strong," said Fitchie.