Ryanair announced its revenue in the last three months of 2023 saw an rise of 17% to €2.7 billion. Its passenger volume rose 7% compared to the same period last year reaching 41.4 million. Q3 FY Results.
Profit after tax dropped 93% year-on-year to €15m, while operating costs rose 26% compared to the same period last year to €2.72bn. Earnings per share at $7.21 outpaced the Zacks Consensus Estimate of $7.13. Average fares increased 24%.
“We continue to target approx. 183.5m FY24 traffic (+9%), despite slightly lower Q3 load factors and Boeing delivery delays,” Ryanair noted, warning that “the full year result remains heavily dependent upon avoiding unforeseen adverse events in Q4 (such as the Ukraine war, the Israel-Hamas conflict and further Boeing delivery delays).”
Ryanair notes that 35% higher fuel costs and Boeing’s inability to deliver aircraft on schedule hurt earnings but the squeeze from some booking sites (i.e., Booking.com; KAYAK) dropping Ryanair is easing.
Ryanair says it now expects an after-tax profit of between €1.85bn and €1.95bn for the 12 months to the end of March. This is lower than its previous forecast of just over €2bn. Shares are down 3% today.
Michael O’Leary spoke about the risk remaining to Ryanair’s growth being the possibility of further delays in the delivery of Boeing 737 MAX 8s. He also noted: “If United wants to delay or cancel any of their MAX orders, Ryanair will be very happy to take them.” The airline expects to have seven fewer deliveries than anticipated for the summer peak and hopes MAX 10s will be with Ryanair during 2025.
“We continue to work closely with Boeing to minimize delivery delays and improve quality control in both Wichita and Seattle“, O’Leary said. “While the recent MAX 9 grounding was a disappointing setback, we don’t expect it to affect the MAX 8 fleet or the MAX 10 certification.”
Mr. O’Leary may have to face some disappointment on the MAX 10 delivery schedule.
