Ryanair profit more than doubles to €820M
Ryanair reported a significant increase in profits for the three months ending in June, with net earnings soaring to €820 million, more than double the €360 million from the same period last year. This surge was attributed to higher-than-expected last-minute fares and the timing of the Easter holidays, which positively impacted bookings. The airline's average fares rose by 21%, effectively recovering from a 15% decline in the previous year.
The low-cost carrier, Europe's largest by passenger numbers, indicated robust bookings for the remainder of the summer, countering trends of later-than-normal bookings reported by some competitors. Ryanair's Chief Financial Officer, Neil Sorahan, expressed confidence in sustained consumer demand, stating that bookings across the board remain strong.
Looking ahead, Ryanair anticipates recovering nearly all of the 7% fare decline experienced last summer during the upcoming July-September quarter, which is crucial for the airline's profitability. CEO Michael O’Leary projected "reasonable net profit growth" for the fiscal year, contingent on the strength of close-in bookings in August and September.
The airline's shares rose approximately 6% following the profit announcement, nearing their all-time high. Revenue for the quarter increased by around 20% to €4.34 billion, bolstered by ancillary income and a 4% rise in passenger traffic, totaling around 58 million.
Despite potential risks, such as tariffs on commercial aircraft, Ryanair remains optimistic about its future. The airline has secured five new Boeing 737-8200 "Gamechanger" jets and plans to receive the remainder of its fleet by summer 2026. Overall, Ryanair's combination of fare recovery, operational efficiency, and strong summer travel bookings paints a positive outlook for the airline, even amid supply-side and geopolitical challenges.
