Ryanair cuts passenger goal due to Boeing delays

In recent news from Europe, Ryanair has announced a reduction in its passenger traffic goal for the fiscal year ending March 2026, primarily due to delays in aircraft deliveries from Boeing. The budget airline reported an after-tax profit of 149 million euros for the fiscal third quarter, surpassing analyst expectations. This performance was attributed to a higher demand during the Christmas and New Year's period, which led to a 9% increase in passenger traffic to 45 million. Despite this positive financial outcome, Ryanair has adjusted its passenger forecast downward from an earlier target of 215 million passengers to 206 million, citing ongoing delivery issues with Boeing's 737 aircraft. The airline's Chief Financial Officer, Neil Sorahan, communicated a sense of cautious optimism regarding future bookings, especially for the summer season. He expressed disappointment at the downgraded traffic numbers but noted significant improvements in Boeing's production processes. Sorahan's recent visit to Boeing's facilities in Seattle allowed him to witness positive developments in supply chain management and aircraft production, which he believes could enable Ryanair to meet its slightly revised target. However, he also acknowledged that the delivery of the remaining nine aircraft is critical to achieving their goals and emphasized the importance of maintaining communication with Boeing regarding their production schedules. The broader context of this situation highlights ongoing challenges in the aviation industry, influenced not only by corporate production issues but also by geopolitical tensions, which could potentially affect travel demand and operational capacity. Ryanair's cautious profit guidance for the full year remains subject to external factors, including the possibility of further conflicts in regions like Ukraine and the Middle East, indicating the fragile nature of recovery in the post-pandemic travel market.