Ryanair has today posted a 34% year-on-year increase in annual profit to a record €1.92 billion and expressed “cautious optimism” that peak summer fares would be flat to modestly ahead of last year.
The result was slightly ahead of the €1.905 billion profit expected in a company poll of analysts.
Ryanair had cut its after-tax profit forecast to a range of €1.85 billion and €1.95 billion in January after some online travel agents suddenly stopped selling its flights.
The airline, Europe’s largest by passenger numbers, also said it would be 23 jets short of the number Boeing was due to deliver by the end of July and there remained a risk – although “unlikely” – that deliveries could slip further.
Its chief financial officer Neil Sorahan told Reuters the new Boeing production team in Seattle were delivering planes with “a bit more consistency” and if things went well it could receive two or three more jets by the end of July.
Ryanair CEO Michael O’Leary warned two weeks ago that summer airfares would likely be lower than the 5% to 10% rise it expected as recently as late April. The airline said today its weaker forecast was “heavily dependent” on last-minute summer bookings.
“The final outcome for FY25 will be heavily dependent upon avoiding adverse events during FY25 (such as wars in Ukraine and the Middle East, extensive ATC disruptions or further Boeing delivery delays),” Mr O’Leary added.
The low-cost carrier flew a record 184 million passengers in the financial year ended March 31, and reiterated it hoped to grow traffic to 198 to 200 million passengers this fiscal year, having already cut that from 205 million in March due to the aircraft delivery delays.
It also announced a €700m share buyback that it said it would formally launch later this week.
The airline said that when this buyback is completed, it will increase the funds Ryanair has returned to shareholders since 2008 to over €7.8 billion.
