Ryanair’s turnover was 2.7 billion in the last quarter but profits are in sharp decline (-93%)

Ryanair’s budget results for the period September to December 2023, just announced by the European low-cost flight giant, have two very different and distinct sides. If turnover remained at $2.7 billion, up 17 percent compared to the same period last year, net profit literally collapsed. The decrease was 93%, from 211 million euros last year to 15 million euros. Revenues not directly attributable to ticket sales accounted for €950 million of the €2.7 billion in the quarter, or almost 30% of the total.

Higher fuel and staff costs for Ryanair

For the company, this sharp decline can be attributed to both fuel costs, which increased by 35%, and high staff costs, which eroded margins despite a good trend in revenues. In fact, compared with a 7% increase in the number of passengers carried, turnover increased by 17% and therefore increased proportionally more, despite the average load factor falling from 93 to 92 percent. Load factor represents the percentage of occupied seats for each flight operated. Although slightly reduced, Ryanair’s load factor remains one of the highest in the world and ensures good fleet efficiency.

Despite this dystonic quarter, the results for the first nine months of the financial year are still improving, also in terms of net profit, which was equal to 2.19 billion euros or 39% more than last year. Turnover increased by 10% to 11.2 billion euros and 146.8 million passengers were carried in the first three quarters of this financial year. For one measure, it is equivalent to all citizens of Germany and Italy. But the company cautiously cut its forecasts for the full financial year last December, given that some online airline booking sites blocked the Irish carrier’s ticket sales, causing its average load factor to drop to 92% for the quarter, putting the company in trouble. The continent will review its prices to maintain its leadership.

The company’s founder, Michael O’Leary, said that it aims to increase the number of passengers from 183.5 million this year to 300 million by 2034, and that the American manufacturer is open to increasing its order for 737 MAX 10 aircraft from Boeing if other customers also participate. Canceling orders due to delays. A test of the company’s strength.

Source: Today IT