Ryanair expects big profits rise after record summer
Ryanair expects full year earnings to rise by up to 30 per cent after a record summer and higher air fares helped offset rising fuel costs.
The Irish carrier, which operates flights out of Birmingham Airport, posted a 59 per cent surge in after-tax profits, to £1.89 billion for the six months to September 30.
Passengers saw air fares surge by 24 per cent on average to around £50 as Ryanair warned restrained air capacity across Europe means average fares will remain firmly in double digits this winter.
The group said this, together with a marked recovery in demand for air travel over the summer – it flew 11 per cent more passengers at 105.4 million over its first half – helped counter a 29 per cent rise in fuel costs.
It is expecting full-year after tax profits to rise to between £1.6 billion to £1.78 billion, up from £1.24 billion in 2022-23.
Michael O’Leary, chief executive of Ryanair, said: “Despite a significantly higher full year fuel bill, very limited fourth quarter visibility and the risk of weaker consumer spending over coming months, we now expect that 2023-24 profits after tax will finish in a range of between 1.85 billion euros (£1.6 billion) to 2.05 billion euros (£1.78 billion), assuming modest losses over the second half winter period.
“This guidance remains highly dependent on the absence of any unforeseen adverse events, for example such as Ukraine or Gaza, between now and the end of March 2024.”
