Ryanair Soars Past Expectations, Despite Boeing Delays
Strong Q3 Performance
Ryanair, Europe’s largest low-cost carrier, has reported an impressive after-tax profit of €149 million ($156 million) for the three-month period ending December 31, surpassing analysts’ forecasts. This significant profit boost was largely driven by a 1% increase in average fares, contrary to expectations of a 7% decline.
Fare Hike Boosts Profits
The unexpected fare hike was attributed to strong last-minute bookings for Christmas and New Year holidays, according to Chief Financial Officer Neil Sorahan. This upward trend in fares has given Ryanair a welcome profit boost, particularly during the traditionally slower winter season.
Cautious Guidance for the Future
While Ryanair is optimistic about its performance, it has revised down its passenger outlook due to delays in Boeing aircraft delivery. The airline is now expecting to take delivery of nine Boeing 737 MAX aircraft ahead of its peak summer season, fewer than initially anticipated. As a result, Ryanair has reduced its forecast for passenger numbers in the 12 months to March 31, 2026, from 210 million to 206 million.
Boeing Delays: A Temporary Setback
Sorahan expressed disappointment at the delays but remains confident that the nine aircraft will arrive on time. Having recently visited Boeing’s production facilities in Seattle, he noted significant improvements in the factory’s quality and efficiency. However, these improvements will not be enough to meet the original delivery schedule.
Long-Term Optimism
Despite the current setbacks, Ryanair is confident about its future prospects. The airline expects to receive the remaining 29 aircraft of its 210 MAX order by March next year, which will lift traffic to 215 million passengers in the year to March 2027. Sorahan emphasized that Ryanair is not concerned about Boeing’s financial position, given its systematic importance to the U.S. economy.
A Promising Future Ahead
Ryanair’s strong Q3 performance and cautious guidance for the future demonstrate the airline’s resilience in the face of challenges. As the largest low-cost carrier in Europe, Ryanair is well-positioned to capitalize on the growing demand for air travel, despite the current Boeing delays.
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