Ryanair Beats Expectations with Strong Q3 Profit, But Cuts Passenger Traffic Goal
Strong Christmas Bookings Boost Revenue
Ryanair, Europe’s largest low-cost carrier, has reported a stronger-than-expected after-tax profit for the December quarter, driven by marginally higher fares due to strong Christmas and New Year bookings. The airline posted an after-tax profit of 149 million euros ($155.8 million), comfortably above analyst expectations of 60 million euros.
Passenger Traffic Growth Despite Boeing Delays
Despite “prolonged” Boeing delivery delays, Ryanair’s traffic grew 9% to 45 million passengers during the quarter. However, the airline has once again cut its passenger traffic goal for the fiscal year to the end of March 2026, citing the ongoing delays.
Boeing Delivery Delays Impact Full-Year Traffic Growth
Ryanair no longer expects Boeing to deliver sufficient aircraft to facilitate full-year traffic growth to 210 million passengers across the twelve months to the end of March 2026. The airline has downgraded this figure to 206 million, following an earlier growth target of 215 million passengers.
CFO Optimistic About Summer Bookings
Ryanair’s CFO, Neil Sorahan, expressed optimism about summer bookings, stating that they are “very strong” although it’s too early to predict where they may go. Sorahan also noted that he’s seen “huge improvements” in Boeing’s supply chain and production facilities during a recent visit.
Industry-Wide Issue Affects Share Price
Analysts at Citi believe that Ryanair’s full-year capacity guidance will create volatility in the firm’s share price, but note that it’s an industry-wide issue that could support the pricing environment.
Cautious Guidance for Full-Year Profit
Ryanair is “cautiously guiding” after-tax profit for the 12 months through to March 31 in a range of 1.55 billion euros to 1.61 billion euros, subject to the risk of conflict in Ukraine and the Middle East and further Boeing delivery delays.
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