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Severe weather affects Ryanair profits

A loss of 10.3m euros in the final quarter of 2010 has been reported by the airline.

Irish carrier Ryanair has reported a quarterly loss of 10.3m euros (£8.8m) for the final quarter of 2010.

The loss has been attributed to severe weather and strike action in the last quarter of the year, which caused the cancellation of 3000 flights.

This result compared with a total of 1,400 cancellations for the whole of the previous financial year.

The company did see a rise in average fares to €34 and a 6% rise in passenger numbers.

Ancillary revenues also rose by 20%.

In a statement released alongside the company's results, Ryanair chief executive Michael O'Leary referred to the results as "disappointing", but stated the company was on track to achieve its full year forecast net profits.

Mr. O'Leary also criticised the European Directives, which entered into force following cancellations as a consequence of the volcanic ash cloud, which obligate passenger compensation in the event of widespread cancellation.