Ryanair forecasts its peak summer fares to remain stable or rise slightly compared to last year.
With a significant boost in profits and passenger numbers, the airline demonstrates strong operational success.
Ryanair, a renowned low-cost airline, has announced that its forthcoming peak summer fares are expected to remain consistent or slightly surpass the previous summer’s rates. The company revealed that its profit after tax experienced a significant soar of 34%, reaching €1.92 billion for the fiscal year ending March 31st, 2024. Additionally, a notable increase of 9% in passenger numbers was observed, culminating in a total of 184 million passengers over the year.
Noteworthy is the company’s total revenue growth of 25%, leading to €13.44 billion. There was an uplift in revenue per passenger by 15% and an average fare increase of 21%, settling at €49.80. This boost was attributed to a robust first half and significant Easter traffic towards the end of March. Additionally, ancillary sales, which include extra charges such as baggage fees and in-flight purchases, rose by 12% to €4.3 billion, translating to about €23.40 per passenger. These figures underscore Ryanair’s strong financial performance despite rising costs.
Ryanair’s CEO, Michael O’Leary, attributed the cost offset to the group’s industry-leading cost base and increased revenue, though they faced significantly higher fuel expenses. He highlighted that the summer 2024 demand remains strong with bookings trending positively compared to the previous year. However, O’Leary cautioned about softer pricing expectations, attributing this to the shift of half of the Easter period into March, which required additional price stimulation compared to last year.
O’Leary expressed caution regarding the limited visibility into future pricing and pointed out that the resulting fiscal year’s outcome would heavily rely on avoiding adverse events. Such events include geopolitical tensions or further delays in Boeing aircraft deliveries. Despite these potential hurdles, Ryanair remains cautiously optimistic about maintaining or slightly surpassing last summer’s rates.
The airline’s growth strategy includes expanding its fleet with the addition of up to 158 B737 Gamechangers by the end of July, although this is 23 aircraft short of their contracted Boeing deliveries. Ryanair’s operations for the summer of 2024 will be their most extensive to date, with plans for over 200 new routes and five new bases across Europe. The company is actively collaborating with Boeing’s CEO and other executives to address and accelerate aircraft deliveries, despite ongoing risks of further delays.
Former Conservative MP and cabinet minister Amber Rudd has been appointed to the board as a non-executive director effective from July 1st. Her previous roles included senior cabinet positions as home secretary and secretary of state for energy and climate change, adding a wealth of experience to Ryanair’s board. Her appointment is a strategic move to strengthen governance and oversight amid an expansive operational phase.
In conclusion, Ryanair’s proactive approach in expanding its fleet and strategic board appointments reflects its robust growth trajectory despite facing industry-wide challenges.
Ryanair’s strategic initiatives and financial resilience position it well for upcoming challenges.
The airline’s efforts in fleet expansion and governance enhancement are pivotal to sustaining growth.
