Ryanair’s profits plunge 45% on Boeing delays despite increased traveller numbers

Ryanair, The Irish-based budget airline posted a net profit ofe 360 ​​million euros in the first quarter fiscal year – from April to June – which means 45% less than for the same period in 2023.

The Dublin firm said the fall in profits was due to “Airfare prices weakened more than expected” during this period, as well as the fact that Easter coincided with the last quarter of the previous financial year.

In this context, Ryanair noted that The average price of an air ticket fell to 41.93 euros. from April last year to June by 15% less, although Passenger traffic increased by 10%.up to 55.5 million users.

Higher operating costs

On the other hand, he stressed that Operating costs increased by 11%. to EUR 3,260 million, while its revenues decreased by 1%, with total turnover in the first quarter amounting to EUR 3,630 million.

Ryanair Chief Executive Michael O’Leary issued a statement that included transport up to 200 million passengers in the current fiscal year – by 8%, as long as the delays that have arisen in recent months with the delivery of Boeing aircraft orders “do not worsen.”

interruption in supplies of devices from the American manufacturer has already forced Ryanair, Europe’s leading low-cost airline, to cut its flight schedule for the current summer high season.

Improving the forecast

Looking ahead to the next periods, O’Leary explained that demand in the second quarter will be “strong.” although he said ticket prices would be “slightly lower” than last summer, and noted that the results of the first financial semester “will depend entirely” on “final reserves and performance” in August and September.

On the other hand, he warned that the benefits planned for the current financial year, which ends on March 31 next year and for which he did not provide figures, depend on the avoidance of “unfavorable events,” such as developments such as conflicts in Ukraine and the Middle East.

O’Leary also noted the impact that “continuous” air traffic controller strikes, staff shortages, capacity constraints at some airports or possible Boeing delays as factors that could slow Ryanair’s growth in the coming months.