15.6 C
London
Thursday, February 15, 2024
HomeBusinessRyanair reduces profit forecast amid online agent dispute

Ryanair reduces profit forecast amid online agent dispute

  • Ryanair lowers profit forecast
  • Online agent sales halt impact
  • Legal disputes with booking sites

Ryanair has lowered its annual profit forecast through March due to the cessation of flight sales by specific online travel agents.

In December, the airline reduced prices to fill seats after claiming that Booking.com, Kiwi, and Kayak had abruptly removed its flights.

In November, Ryanair projected profits of up to €2.05 billion; however, it anticipates earnings of €1.95 billion (£1.7 billion).

The sharp increase in the airline’s petroleum bill has negatively impacted profits.

From October to December, petroleum expenses increased by 35% to €1.2 billion for the quarter.

Row with online agents

In January, Ryanair criticised Booking.com, Kiwi, and Kayak, claiming these online travel agencies had abruptly removed its flights from their websites.

A protracted dispute has ensued between Europe’s largest airline in terms of passenger volume and online booking platforms since the airline initiated legal proceedings in the United States against Booking Holdings, the parent company of Booking.com, and its subsidiaries, which include Kayak, Agoda, and Priceline.

This was in response to a prohibition by the Irish High Court on screenscraper Flightbox collecting Ryanair flight information for online travel agencies.

In response to the airline’s prediction that removing its flights from the websites would result in a short-term increase in the number of empty seats on its aircraft, direct ticketing prices were reduced.

In its most recent financial report, Ryanair estimated an after-tax profit of €1.85bn to €1.95bn for the fiscal year ending in March, lower than the €1.85bn to €2.05bn profit forecast it issued in November.

The airline reported a decline in revenue per paying passenger compared to the previous year, attributing this to eliminating flights from online travel agencies despite increased passenger numbers and fares.

Neil Sorahan, chief financial officer of the airline, informed Reuters that the impact of the airline’s removal from the websites of some online agents would be transient and was “fizzling out.”

“Don’t miss out! Grab your free shares of Webull UK today!”

Record Profits Amid Rising Challenges

The after-tax amount would surpass the airline’s previous record annual after-tax profit of €1.45 billion in 2018. This follows a surge in earnings for the airline in November, attributed to pricing increases.

Despite a 24% surge in average fares, Ryanair reported an all-time high of 105.4 million passengers, an 11% increase in the six months leading up to September.

The airline warned that the prospect of additional delivery delays for the new, more fuel-efficient Boeing 737 Max 8 aircraft could also impact profits.

Additionally, it stated that its annual performance continued to be significantly influenced by “the avoidance of unanticipated adverse events (such as the Ukraine war and the Israel-Hamas conflict).”

US economy grows faster than projected

RELATED ARTICLES

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Most Popular

Amazon rainforest nears collapse by 2050, researchers warn

Amazon rainforest nears collapse by 2050, researchers warn

Inflation at 4% as food prices drop, surprising

Inflation at 4% as food prices drop, surprising

Israel strikes Lebanon after rockets hit base

Israel strikes Lebanon after rockets hit base

Putin signs law against discrediting military, seizing assets

Putin signs law against discrediting military, seizing assets

Recent Comments