Ryanair, the low-cost airline, reported today a €180.4 million (£155 million) loss for the full-year, which it blamed on rising fuel costs, lower fares and a steep writedown on its investment in Aer Lingus, its Irish rival.

The loss for the year to March 31 compares with a €438.9 million profit the year before and sent Ryanair’s shares down by €0.21, or 5.69 per cent, to €3.44.

The bottom line was hit by a 59 per cent rise in fuel costs to €1.2 billion, and Ryanair also took a €222.5 million writedown on the value of its 29.8 per cent stake in Aer Lingus.

Passenger numbers rose by 15 per cent and group revenues increased by 8 per cent to €2.94 million.

Michael O’Leary, the chief executive of Ryanair, said: “In this recessionary environment we intend to continue to offer European consumers ... better value just like Aldi, Lidl, Ikea and McDonald's are doing in their respective industries.

“Ryanair will continue to lower fares to stimulate traffic growth, maintain high load factors and win more short-haul traffic from our high-fare competitors.”

Ryanair plans to grow passenger numbers to 67 million this year by cutting average fares by between 15 per cent and 20 per cent to as little as €32.

Average fares fell by 8 per cent last year to €40.

The group said that it had increased hedging against the price of fuel and that if oil prices remained at present levels its fuel bill for the year would be €450 million lower than last year.

Ryanair said that the combination of lower fuel costs and higher passenger numbers would help to lift it to a net profit, which excludes exceptional items, of between €200 million and €300 million this year, compared with €105 million last year.

Ryanair plans to enlarge its fleet from 188 to 202 in the summer, to 244 by next summer and to 303 by 2012.

Michael Cawley, the deputy chief executive of Ryanair, said: “The demand is there, business is there, it’s just a question of getting the right price from our suppliers.

"We believe it’s a good time to buy because most other airlines are cancelling orders or not placing orders at all.”

business.times.online