Ryanair Profits Soar Despite Forecast Revisions

Record Profits Driven by Rising Fares and Passenger Growth

Ryanair, Europe’s largest airline, has reported a staggering near tenfold increase in profits for the final quarter of 2024. The low-cost carrier’s profit after tax surged to €149m (£125.36m) between October and December, compared to just €15m (£12.62m) during the same period the previous year. This remarkable growth comes as more passengers booked higher-priced tickets closer to departure dates, defying earlier predictions of falling airfares.

Key Drivers of Success

• Higher Airfares: Despite forecasting a 5% drop in winter fares, Ryanair saw ticket prices rise by 1% during the Christmas and New Year period, attributed to strong last-minute bookings.
• Increased Passenger Numbers: Passenger traffic grew by 9%, reaching 45 million during the quarter.

Ryanair’s earlier forecasts had anticipated falling fares, with prices dropping by 15% in the first quarter and 7% in the second quarter of its financial year. However, the unexpected fare rise reversed this trend, boosting the airline’s profitability.

Revised Passenger Forecasts Due to Aircraft Delays

Despite strong financial performance, Ryanair has downgraded its passenger forecast for the 2026 fiscal year, citing delays in aircraft deliveries from Boeing. The airline now expects to carry 206 million passengers, down from an earlier estimate of 210 million. This still represents a 3% year-on-year increase in passenger numbers.

• Boeing Delays: Production setbacks, including safety concerns following a mid-flight door blowout incident, have disrupted Ryanair’s plans for fleet expansion.
• Operational Impact: Ryanair predicts that four million fewer passengers will fly with the airline in 2026 due to delayed aircraft deliveries.

Ryanair’s Position as Europe’s Largest Airline

As Europe’s leading budget carrier, Ryanair continues to dominate the market with its extensive fleet and network of destinations. Despite challenges, the airline’s ability to adapt to changing market conditions and leverage demand during peak travel periods underscores its resilience.

Conclusion

Ryanair’s near tenfold profit surge highlights its strong market position and ability to capitalise on changing travel patterns. While aircraft delivery delays from Boeing have led to revised passenger forecasts, the airline’s ongoing growth trajectory remains robust. With increased fares and rising passenger numbers, Ryanair continues to solidify its status as a key player in Europe’s aviation industry.

Source: (news.sky.com)