A budget Irish airline which has a base at two NI airports has hit turbulence, reporting a major financial loss last year.

Ryanair, which has flights from both City of Derry and George Best Belfast City Airport, sustained substantial losses, but is insisting that it expects a smaller fourth-quarter loss than previously anticipated - due to lower fuel costs.

Yesterday, the airline reported figures down by more than €100m for the third quarter of 2008/09.

The €101.5m adjusted net figure was for the three months to the end of December compared with a €35m profit a year ago.

However, a spokesman said the loss was because of a 71% increase in fuel costs at the time.

Now, as well as looking ahead to the next quarter's figures, the airline has also raised its full-year outlook to one that anticipates returning to profit from a previously predicted break-even situation.

This is also due to lower fuel costs, and the positive view is a forecast for substantial profit next year.

The expected smaller fourth-quarter loss therefore allows it full-year guidance predictions of net profit in the €50-80m range versus an earlier projection of break-even, it said.

Commenting, Ryanair still expects fares to fall by more than 10% next year, or more if the recession deepens, adding that it does not expect to give precise earnings guidance for 2009/10 until the fare outlook becomes clearer.

Last month, Ryanair indicated that it would not proceed to the next phase of its proposed takeover of Aer Lingus - which now also flys from Northern Ireland.

Unless it receives support from Aer Lingus shareholders - which has not been forthcoming - the airline said it will take its proposal off the table on 14 February.

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