Ryanair has revealed plans for an overhaul to create four subsidiaries as the airline revealed a third-quarter loss of €20 million and said that a no-deal Brexit “remains worryingly high”.

The airline announced today that it planned to have four distinct operations, each with its own chief executive.

CEO Michael O’Leary will head up the overall group, Ryanair has said. Under O’Leary, Ryanair DAC will oversee the Irish operations but there will be also Ryanair UK, Laudamotion for its Austrian business and Ryanair Sun, or Polish unit.

“Having agreed this group strategy as the best way to grow Ryanair, Sun, Lauda and other possible airline brands, Michael O’Leary has agreed a new five-year contract as group CEO,” a statement said.

It added: “Over the next 12 months Ryanair Holdings Plc will move to a group structure not dissimilar to that of” British Airways and Iberia owner IAG.

“A small senior management team will oversee the development of four airline subsidiaries… (focusing) upon efficient capital allocation, cost reductions, aircraft acquisitions and small-scale M&A opportunities,” the statement said.

On the latest group earnings performance, O’Leary said that while the €20 million net loss was “disappointing”, the group takes “comfort that this was entirely due to weaker than expected air fares”.

Last month, Ryanair cut its annual profit forecast for a second time, blaming lower air fares caused by overcapacity in the European short-haul sector.

Meanwhile, the airline spoke out on Brexit today.

“The risk of a ‘no-deal’ Brexit remains worryingly high. While we hope that common sense will prevail, and lead to either a delay in Brexit, or agreement on the 21 month transition deal currently on the table, we have taken all necessary steps to protect Ryanair’s business in a no-deal environment,” the statement said.

Britain accounts for about one-quarter of revenues at Ryanair, causing the airline to warn frequently about potential fallout from the UK’s path to exiting the European Union.

Source: Reuters