Ryanair lowers profit outlook following removal of flights from booking sites

[ad_1]

  • Europe’s largest airline now forecasts annual profits of between €1.85 billion and €1.95 billion
  • Ryanair reveals third quarter profits fell 93% to €15 million
  • Booking.com and Kayak removed Ryanair flights from their sites last month

Ryanair has cut its annual profit forecast due to rising fuel costs and the removal of its flights from some online travel agencies.

Europe’s largest airline now expects profits of between €1.85 billion (£1.58 billion) and €1.95 billion (£1.66 billion) for the year ending in March, having previously forecast between 1.85 and 2.05 billion euros.

Although the group reported a strong peak period for Christmas and New Year, fares were lower than expected as many booking sites, including Booking.com and Kayak, removed Ryanair flights from their websites early December.

Downward forecast: Europe's biggest airline now forecasts profits of between €1.85 billion (£1.58 billion) and €1.95 billion (£1.66 billion) for the year ending in March.

Downward forecast: Europe’s biggest airline now forecasts profits of between €1.85 billion (£1.58 billion) and €1.95 billion (£1.66 billion) for the year ending in 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 have a negative impact on short-term fares and load factor – the percentage of seats occupied by an airline – as it would reduce prices to try to stimulate demand.

The Dublin-based airline’s total revenue rose a further 17 per cent to €2.7 billion in the three months to December, driven by increases in passenger traffic and average fares. 7 percent and 13 percent, respectively.

Yet this was offset by soaring fuel bills, which soared 35 per cent to €1.2bn (£1bn), with staff costs and the maintenance schedule also contributing to rising operating costs.

As a result, Ryanair’s third-quarter profits fell 93 percent, from €211 million the previous year to €15 million.

For the current quarter, the group warned that its sales would be impacted by the “partial unwinding” of free ETS (Emissions Trading Scheme) carbon credits from the beginning of January.

Additionally, Chief Executive Michael O’Leary said the full-year forecast “remains heavily dependent on the need to avoid unforeseen adverse events”, including conflicts in Ukraine and the Middle East.

Companion Low-cost airlines EasyJet and Wizz Air suspended flights to Israel following the October 7 attacks and observed demand for travel to Jordan and Egypt is slowing significantly.

O’Leary also warned that Ryanair’s results would depend on delays in the delivery of new fuel-efficient planes due to additional safety checks.

The company plans to have up to 174 Boeing 737 MAX-8s, seven fewer than expected, by the end of June, in time for the peak summer season, when it will offer 169 new routes.

Ryanair ordered 150 Boeing MAX-10 planes, with an option for 150 more, in a £32 billion deal last year. as part of plans to increase its annual passenger numbers to 300 million by March 2034.

It told Boeing it would receive delivery of any MAX-10 planes canceled by U.S. airlines “at the right price.”

Ryanair shares were down 2.4 percent this morning at 18.35 euros on the Euronext Dublin stock exchange.



[ad_2]

Source link

Scroll to Top