HomeAir LineRyanair earns 2,190 million in the first nine months of its fiscal...

Ryanair earns 2,190 million in the first nine months of its fiscal year, 39% more, but worsens forecasts

The profit in the third quarter is only 15 million, which lowers the estimated range for the end of the year

A Ryanair plane taking off

Ryanair Holdings’ estimates for its performance in the 2023-2024 fiscal year suffer. The airline has declared a profit after taxes of 15 million euros in its third quarter, which contrasts with the 211 million earned in the comparable period of 2022-2023. At the end of the nine months, the result is 2,190 million, with a jump of 39% compared to the 1,580 million for the nine months ended December 31, 2022.

The Irish company speaks of adverse effects such as an increase in fuel costs, a Christmas period with softer demand than expected or the 67 days of strikes in air traffic control suffered throughout 2023. Total revenues for the third quarter increased 17% to 2.7 billion euros, while operating costs rose 26%, also reaching 2.7 billion. Traveler traffic and ticket prices are higher than 12 months ago, but Ryanair recognizes some impact for having lowered prices in December in response to the removal of its flights from travel websites that it considers pirated.

The airline continues to aim to reach 183.5 million travelers in the fiscal year, which would represent an increase of 9% and overcome a somewhat lower aircraft load factor and delays in the incorporation of new aircraft. But the net profit estimate drops to a range of 1,850 to 1,950 million (previously from 1,850 million euros to 2,050 million euros).

The volume of passengers between the end of summer and the end of the year grew by 7%, to 41.4 million, although the flight load factor lost one percentage point compared to the third quarter of the 2022-2023 financial year, standing at 92%. Revenue per passenger increased by 9%, with the average ticket price increasing by 13%, to 42 euros, and other commercial income increasing by 2%. Against this evolution has weighed the 35% increase in the fuel bill, of 1,200 million in the quarter. The queen of low cost is preparing to pay a dividend of 0.175 euros per share on February 28.

The group’s first executive, Michael O’Leary, has highlighted the arrival of 12 new B737-8200 “Gamechangers” aircraft, with 4% more seats and fuel consumption that is reduced by 16%. In addition, the company is adapting the winglets (aerodynamic devices used on wingtips) of its B737NG fleet (the target is 409 units by 2026) to reduce the fuel consumption of those aircraft by 1.5%. Regarding the contract with Boeing, Ryanair has already received 136 units of the B737 Gamechanger and expects to have up to 174 by the end of June, which would be seven less than the contracted deliveries.

The company markets 169 new routes for the summer season, making a total of 2,600 routes. Regarding the business environment, he sees growth opportunities due to short-haul supply restrictions due to integration in the sector and that competitors are grounding A320 aircraft in Europe due to P&W engine problems. Ryanair expects these disruptions to last until 2026.

Regarding the effect of the strikes on air traffic control, O’Leary insists on the demand for “an urgent reform of the inefficient European air traffic control system, which would represent the most significant environmental improvement in EU air transport. Unfortunately, the European Commission has not taken any action.” The executive assures that he will ask the president again Ursula von der Leyen “to defend the single air transport market by protecting 100% of overflights during national air traffic control strikes, as is already happening in Greece, Italy and Spain.”

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Source: Cincodias

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