Ryanair recorded a significant decline in profits in the third quarter of its financial year 2023/2024, mainly due to theincrease in costs. Despite an a17% increase in turnover at 2,7 billion euros, theNet income Group came down by 93% to 14,8 million euros.
The Irish low-cost airline attributed this result to the increase in kerosene costs, as well as increases in salaries and airport taxes.
“While traffic and fares increased year-on-year, in the run-up to Christmas and New Year occupancy rates and returns were lower than expected in response to Ryanair's sudden (but welcome) withdrawal” from “pirate” online agency sites travel” in early December. The company had reported last month that some sites were selling Ryanair flights by inflating the prices of tickets or services.
Ryanair's Chief Financial Officer, Neil Sorahan, said in an interview that “fuel costs were a big obstacle for us.” Furthermore, the decision by online travel agencies, such as Booking.com, to remove Ryanair's offers following legal disputes has pushed the airline to reduce prices. This has negatively affected load factors and rates, according to Sorahan.
Following these results the company revised the I lowered earnings forecasts, for the current fiscal year.
Estimates for the year are downward
Ryanair has revised its estimates for its annual result downwards. Pre-tax profit forecasts now point to a range of 1,85 to 1,95 billion euros, lower than the previously estimated mark of 2,05 billion. Different factors weigh on the estimates”unexpected negative factors such as the war in Ukraine, the conflict between Israel and Hamas and further delays in Boeing' deliveries as well as the entry into force of a pilot pay increase agreement and the end of free carbon credits.
Despite slightly lower occupancy rates in the third quarter and delays in deliveries of Boeing planes on order, the airline group expects to carry a total of 183,5 million passengers over the full financial year, recording an increase of 9%.
At the moment, Ryanair does not expect to receive the first Boeing Max 10 airplane before 2027. However, the CEO said the company will discuss with Boeing the possibility of bringing forward deliveries in case of waivers by other airlines.
New routes from Rome and Milan
Last week the company, through the CEO, Michael O'Leary, he announced new routes from Rome and Milan airports.
Seven new routesand from Rome airports: from Fiumicino to Dubrovnik, Gothenburg, Lisbon, Malta and Paris, and from Ciampino for Gdansk and Riga. Ten new destinations from Milan – Bergamo airports: from Malpensa you can reach Tallinn, Marrakech, Paris Beauvais, Athens and Budapest while from Orio al Serio the destinations are Beni Mellal, Castellon, Sarajevo, Dubrovnik and Skiathos.
The opening of two new bases (currently 17 in Italy) in Trieste and Reggio Calabria was also announced.
