Ryanair Holdings PLC (LSE:RYA) said lower fares and higher costs due in part to Boeing’s problems slashed profits in its latest half-year.
Costs rose 8% to €6.68 billion causing interim profits to drop by 18% to €2.18 billion even with revenues edging up 1% to €8.69 billion and record passenger numbers.
The Irish airline carried 115 million passengers in the six months to end September 2024, up 9% on the previous year.
Michael O’Leary, chief executive, said that consumers spending less, a later Easter and drop in online bookings (OTAs) meant it had to run more price promotions than expected.
Delays in receiving new Boeing aircraft due to its production problems also affected costs, he added.
Because of the delivery delays, Ryanair has now reduced its forecast for passenger numbers in its 2026 year to 210 million from 215 million with between 198 million and 200 million the forecast for this year.
Costs this financial year will be broadly flat, said O’Leary, with fuel hedges and Boding delay compensation offsetting higher wages and air duty, which went up in the Budget.
He added the airline is cautious over fares and even though the rate of decline is moderating, the third quarter is expected to see them lower again year-on-year.
No profit guidance for the full year was given as it has, as per normal, zero visibility for the final quarter, said O'Leary, while “There are the risks of conflicts in Ukraine and the Middle East, repeated ATC short-staffing and capacity restrictions, and/or further Boeing delivery delays.”
There is an interim dividend of €0.223.