Ryanair increases net profit by 128% in Q1

yanair closed the first quarter in June with a more than doubled net profit of €820 million, compared to €360 million (+128%) a year earlier., traffic up 4%, reaching 58 million passengers with 21% higher fares, which partly offset the 7% drop in the past year, but warning that ticket costs will be lower next quarter. The first-quarter result was helped by the comparison with the same period last year, which had been revised downwards due to the dispute over bookings made by OTAs (online travel agencies) and contested by the carrier. Also playing in the first quarter's favour was the Easter period, this year in April.

The forecasts for the coming quarters are more cautious, although 60% of seats have already been sold. There remain the unknowns of the economic impacts of the fare war, conflicts and air traffic controllers' strikes that in June caused the low-cost airline to cancel 500 flights a day, as CEO Michael O'Leary explained in a call with analysts. On the stock market, Ryanair's share rose as much as 6%, bringing its increase since January to 21%, while low-cost rivals easyJet and Wizz Air fell 11% and 27% respectively since the start of the year.

The delays in aircraft delivery by Boeing that have stunted Ryanair's growth in the past are easing as it has received 25 new B737-8200s out of 618 aircraft in its fleet over the past year, with which it expects to increase traffic by 3% this year to 206 million passengers. The low-cost carrier is confident that the 29 remaining 'Gamechangers' in its order book of 210 aircraft will be delivered before 2026, with five aircraft already delivered in the first quarter. The carrier has therefore decided not to replace the MAX 10 aircraft, scheduled for delivery in early 2027, with the smaller MAX 8 models, after receiving reassurances from Boeing regarding on-time delivery, O'Leary said that Boeing was committed to telling Ryanair by the end of June whether the new aircraft would be ready, 'or we would change our mind and take additional (MAX) 8-200s'. The ceo of the Commercial aeroplanes division, Stephanie Pope, has 'kindly confirmed in writing' that the aircraft will be delivered on schedule, O'Leary added.

Returning to first quarter results, turnover increased by 20% to €4.34 billion with ancillary revenue (baggage and seats) at €1.39 billion (+3%). For the summer period, travel demand remains strong across its entire network, helped by capacity constraints of other carriers, added 160 routes bringing the low cost carrier's network to 2600, favouring some regional destinations in Italy, Sweden and Hungary where taxation has been reduced. The carrier did not disclose any guidance for the current year, limiting itself to saying that it expects "moderate" profits, costs under control and fares recovering compared to last year. Ryanair's results follow those of easyJet, with the British low cost carrier reporting a £25 million drop in net profits due to air traffic controller strikes and rising fuel prices.