Jan 27, 2025, 10:15 AM
Jan 27, 2025, 7:29 AM

Ryanair profits surge despite delivery delays

Highlights
  • Ryanair's profit surged to €149 million in the three months from October to December 2024.
  • The airline has cut its future passenger forecasts due to delays in Boeing aircraft deliveries.
  • Despite increased profits, Ryanair faces potential losses in the upcoming quarter due to these delivery issues.
Story

In Ireland, Ryanair experienced significant profit growth between October and December 2024. The airline's profit after tax reached €149 million, a substantial increase from €15 million in the same period the previous year. This remarkable performance was primarily driven by higher airfares, as more passengers booked tickets closer to their departure dates despite previous predictions of a fare drop. The number of passengers also showed a positive trend, increasing by 9% to 45 million during these months, suggesting strong demand for air travel, particularly during the Christmas and New Year period. Despite these gains, the airline has had to revise its passenger forecast downwards for 2026, owing to significant delays in aircraft deliveries from Boeing, particularly the larger 737 Max models. Ryanair announced that it expects four million fewer passengers due to these delays, adjusting its anticipated passenger numbers from 210 million to 206 million. The company noted that it no longer expects Boeing to meet the demand for aircraft in time for the busy summer season, which has led to concerns about its operational capabilities and customer satisfaction in the coming months. Boeing's ongoing issues, particularly with safety concerns and production delays, have not only impacted Ryanair's future growth strategies but have also placed pressure on the airline's existing operations. The combination of late Easter dates and the fallout from Boeing's challenges is predicted to cause losses of up to €370 million in the next quarter for Ryanair. In light of this situation, the airline's management acknowledged that it is now a year behind its ten-year goal to serve 300 million passengers annually. Overall, Ryanair continues to be Europe's largest airline based on the number of aircraft and destinations served, buoyed by robust demand and slightly higher ticket prices. However, the reliance on timely aircraft deliveries is critical for sustained growth and profitability, especially in an increasingly competitive market where service reliability is key.

Opinions

You've reached the end