Despite posting a strong after-tax profit for the third quarter, Ryanair has once again lowered its passenger traffic target for the fiscal year due to ongoing delivery issues with Boeing.
Europe's largest low-cost carrier, Ryanair, recently announced a strong after-tax profit of 149 million euros ($155.8 million) for the fiscal third quarter ending December. This figure comfortably surpassed analyst expectations, which had predicted a profit of 60 million euros for the three-month period. Ryanair attributed this stronger-than-expected performance to slightly higher fares driven by robust Christmas and New Year bookings.
Despite facing 'prolonged' delays from Boeing, the airline reported a 9% increase in traffic to 45 million passengers. However, Ryanair chose to again trim its passenger traffic target for the fiscal year concluding March 2026. While initially aiming for 210 million passengers, the airline now projects a total of 206 million passengers. This adjustment stems from ongoing issues with Boeing deliveries, as Ryanair no longer anticipates receiving sufficient aircraft to support the initial growth target. The airline's Chief Financial Officer, Neil Sorahan, expressed optimism about the upcoming year, citing strong summer bookings. He acknowledged that it's too early to predict precise booking trends, but his recent visit to Boeing's production facilities in Seattle instilled confidence in him. Sorahan observed significant improvements in Boeing's supply chain and overall operations, leading him to believe that the remaining nine aircraft needed to reach their target fleet size of 181 'Gamechangers' would be delivered. He remains hopeful that Ryanair won't have to further reduce its traffic targets. Analysts at Citigroup believe that Ryanair's adjusted capacity guidance could introduce volatility in the company's share price. Nevertheless, they view this as a positive factor for the pricing environment within the industry. Ryanair cautiously projects an after-tax profit range of 1.55 billion euros to 1.61 billion euros for the fiscal year ending March 31. This projection, however, remains contingent upon the geopolitical situation in Ukraine and the Middle East, as well as the potential for further Boeing delivery delays
RYANAIR AIRLINE PROFIT BOEING DELIVERIES TRAFFIC PASSENGER GROWTH SUPPLY CHAIN
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