Europe’s largest airline expects annual profits of between 1,850 and 1,950 million euros
Ryanair revealed that its third quarter profits plummeted by 93% to €15 million
Booking.com and Kayak removed Ryanair flights from their sites last month
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Ryanair has reduced its annual profit forecast due to rising fuel costs and the withdrawal of flights from some online travel agencies.
Europe’s largest airline now forecasts profits of between €1.85bn (£1.58bn) and €1.95bn (£1.66bn) for the year ending March, after previously forecasting between €1.85bn of euros and 2,050 million euros.
Although the group reported a strong Christmas and New Year trading period, fares were lower than expected as many booking sites, including Booking.com and Kayak, removed Ryanair flights from their websites in early December.
Lower guidance: Europe’s biggest airline forecasts profits of between €1.85bn (£1.58bn) and €1.95bn (£1.66bn) for the year to March.
Ryanair welcomed the move, having previously accused the sites, which it repeatedly called “pirates”, of overcharging customers, price and refund scams and providing false contact information.
But it warned last month that the move would negatively affect short-term fares and load factor – the percentage of seats occupied by an airline – as it would cut prices to try to boost demand.
The Dublin-based company’s total turnover still grew by 17 percent to €2.7 billion in the three months ending in December, thanks to passenger traffic and average fares that increased by 7 percent and 13 percent. cent, respectively.
However, this was offset by rising fuel bills, which rose 35 per cent to €1.2bn (£1bn), with staff costs and maintenance timing also contributing to the rise. operating costs.
As a result, Ryanair’s third-quarter profits plummeted by 93 percent, from €211 million a year earlier to €15 million.
For the current quarter, the group warned that sales would be affected by the “partial liquidation” of free ETS (Emissions Trading Scheme) carbon credits from the beginning of January.
Additionally, CEO Michael O’Leary said full-year guidance “remains highly dependent on avoiding unforeseen adverse developments,” including conflicts in Ukraine and the Middle East.
Low-cost airlines EasyJet and Wizz Air suspended flights to Israel following the October 7 attacks, seeing demand for travel to Jordan and Egypt decline significantly.
O’Leary also warned that Ryanair’s results would feature delays in the delivery of new fuel-efficient planes as a result of additional safety checks.
The company expects to have up to 174 Boeing 737 MAX-8 aircraft, seven fewer than planned, by the end of June, in time for the peak summer season, when it will have 169 new routes on sale.
Ryanair ordered 150 Boeing MAX-10 aircraft, with an option for 150 more, in a £32bn deal last year under plans to expand its annual passenger numbers to 300m by March 2034.
It has told Boeing that it would take delivery of any MAX-10 planes canceled by U.S. airlines “at the right price.”
Ryanair shares fell 2.4 percent this morning to €18.35 on the Euronext exchange in Dublin.