Ryanair raises Laudamotion loss estimate to E150m

Ryanair Monday said it expected Austrian holiday airline Laudamotion, which it agreed to buy earlier this year, to post annual losses of E150m, up from an earlier estimate of E100m. The Irish airline, which said it plans to increase its stake in Laudamotion to 75% from 25% in the coming weeks after securing regulatory approval, blamed the higher loss on factors including lower-than-expected summer fares due to the late release of Laudamotion schedules this summer. "Next year it will get its schedules on sale much earlier, so it won't have the issues with last minute discounting," CFO Neil Sorohan said. "We will help it out with its fuel hedging and I would expect it to break even towards the back end of year 3." Sorohan said Ryanair would consider other acquisition opportunities, but said Ryanair's key growth would be through organic growth. Laudamotion also faces "substantial cost headwinds" in fuel as it does not hedge, Ryanair said.<br/>