Ryanair Reports Q3 Profit Beat, Revises Down Passenger Forecast Due to Boeing Delays
In the three-month period ended December 31, Ryanair Holdings plc, Europe's largest low-cost carrier, reported an after-tax profit of €149 million, exceeding analysts' expectations of €60 million.
The positive results were attributed to a better-than-expected 1% increase in average fares during the quarter, following a 7% decline in the previous quarter. According to Ryanair's Chief Financial Officer Neil Sorahan, strong last-minute bookings for Christmas and New Year holidays contributed to this revenue growth.
While Ryanair makes most of its profits during the summer season, it remains cautious in its outlook. For the full year ending March 31, the company expects after-tax profit to fall within the range of €1.55 billion to €1.61 billion.
However, Sorahan noted that despite early indications of robust bookings, it was too early to provide guidance on the upcoming summer season. He also acknowledged that constrained capacity in the European short-haul market could support fares.
Boeing Delays Impact Passenger Forecast
Ryanair has revised down its passenger forecast for the 12-month period ending March 31, 2026, to 206 million from its previous projection of 210 million. Additionally, the company has cut its initial forecast of 215 million passengers, which was made in November.
These adjustments are attributed to anticipated delays in the delivery of Boeing 737 MAX aircraft. Ryanair expects to receive only nine MAX aircraft before its peak summer season, fewer than expected. The remaining 29 aircraft from Ryanair's order are now expected to arrive by March 2023, with full passenger capacity reaching 215 million in the year ending March 2027.
Sorahan, who recently visited Boeing's production facilities in Seattle, expressed disappointment with the delays but maintained confidence that the nine aircraft would arrive on time. He cited improvements in fuselage quality but acknowledged that delivery for this summer would not be possible.
Despite the delays, Ryanair has no aircraft orders with other manufacturers. Sorahan stated that the company is not concerned about Boeing's financial position, believing that the U.S. government would provide support as it deems Boeing a strategically important company.