- Ryanair posts record profits despite rising costs
- Passenger numbers surge 23% to 184 million
- Boeing delays prompt “modest compensation” for Ryanair
The low-cost carrier stated that Boeing will provide “modest compensation” for delayed aircraft deliveries.
Ryanair has disclosed yet another year of unprecedented passenger and profit growth.
According to its annual results, the airline, which has the most passengers in Europe, increased the average fare by 21% compared to the previous year.
However, the company indicated that ticket prices might decrease following this summer, when they will either be the same or higher than they were the previous year.
Annual profits for the fiscal year ending in March 2018 surpassed the previous record of €1.45bn (£1.26bn), amounting to €1.92bn (£1.64bn).
Passenger numbers have surpassed previous all-time highs and surged to 184 million, which is 23% more than the year before the COVID-19 pandemic.
Those passengers paid an average of 21% more in fares compared to the year leading up to March 2023. Still, Michael O’Leary, CEO of Ryanair, stated that “then so be it” if the company must reduce fares to ensure that aircraft are 94% full in April, May, and June of 2023.
Despite “strong” demand for summer flights and the addition of more than 200 routes to its summer schedule, the low-cost carrier remains “cautiously optimistic” that peak summer fares in 2024 will be relatively flat to slightly higher than they were last summer.
Boeing resistance
Boeing’s delays in supplying the airline with new aircraft have not impeded the increase in passengers.
Ryanair’s financial success was substantially reliant on its expansion, which included the purchase of 300 new 737 MAX 10 aircraft.
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However, due to regulatory and media scrutiny of safety at its manufacturing sites and the blowout of a door on an Alaska Airlines Boeing 737 MAX 9 jet, the aircraft manufacturer has been plagued by delays.
These delays “could potentially slip further,” according to Mr. O’Leary.
However, Ryanair stated that Boeing would provide “modest compensation” for the delays.
Fuel costs for the no-frills carrier increased by 32% to €5.14 billion (£4.4 billion).
