Ryanair: profit is close to 2 billion, but Boeing's delays weigh on the stock. Rates unchanged for the summer

Ryanair's revenues rise 25% to 13,44 as the company expects an 8% increase in passengers in the financial year. 700 million buyback announced

Ryanair: profit is close to 2 billion, but Boeing's delays weigh on the stock. Rates unchanged for the summer

Ryanair exceeds analysts' expectations and closes the 2023/2024 budget with a net profit very close to 2 billion euros and revenues growing by 25 percent. After the publication of the results the title of Ryanair drops 3,6% in London due to delivery delays by Boeing.

Ryanair's balance sheet

Fiscal year 2024 ended with net profits of 1,92 billion euros, up 34% from last year, driven by an increase in passengers and fares, despite the cost of fuel. Analysts had expected a figure of 1,905 billion. In January Ryanair cut its pre-tax profit forecast to a range of between 1,85 and 1,95 billion euros after some online travel agencies suddenly stopped selling its flights.

Revenues increased by 25% to 13,44 billion euros, while traffic recorded an increase of 9% to 183,7 million passengers (+23% compared to the pre-Covid period). The company was able to look back on “a record first half and strong Easter traffic,” said chief executive Michael O'Leary.

Average rates rose by 21% at 49,80 euros, while operating costs they grew due to the 32% increase in fuel prices, but also “increased personnel costs and delays in Boeing deliveries”. Costs per seat remain under control. 

The final dividend is 0,178 euros per share and Ryanair announced a share buyback for 700 million.

For fiscal year 2025 the airline expects to increase traffic by 8% in the current financial year, to deliver between 198 and 200 million passengers provided Boeing's deliveries return to contract levels before the end of the year.

O'Leary: “Summer rates unchanged or slightly higher until 2024”

The CEO Michael O'Leary, Presenting the results to investors, however, he said that “a sense of recession hovering over Europe” could be a factor in slower-than-expected airfare growth. Despite the strong demand for travel, it seems that tourists are not willing to dip into their wallets as Ryanair predicted a few months ago. However, the company expressed "cautious optimism" that summer rates will be unchanged to slightly higher than last year.

“Travel demand in Europe is strong for the 2024 season and, despite delays in Boeing deliveries, we will operate our largest summer schedule ever with over 200 new routes (and 5 new bases),” added O'Leary .

Boeing's delays 

On the Boeing case, the CEO of Ryanair explained that the company aims to increase the fleet of B737 Gamechangers 146 to 158 aircraft by the end of July. Compared to the deliveries foreseen by the contract, this is 23 fewer planes. “We continue to work closely with Boeing CEO (Dave Calhoun), CFO (Brian West) and the new management team in Seattle to improve the quality and accelerate deliveries of the B737 aircraft,” added the manager Irish, explaining however that the risk remains that the Boeing deliveries may slip further.