Ryan reveals larger-than-expected fall in first-quarter profit despite passenger growth
Date
7/22/2024 9:17:09 AM
(MENAFN) Irish low-cost airline Ryanair has announced a more significant drop in net profit for the first quarter of the current financial year than anticipated. Europe's largest budget airline reported a 46 percent decline in net profit, totaling €360 million after tax, which fell short of the €512 million average forecast by analysts surveyed by Bloomberg.
Despite this profit shortfall, Ryanair saw a 10 percent increase in the total number of passengers carried during the first quarter, reaching 55.5 million. This figure surpassed the 50 million passenger estimate predicted by analysts. However, the airline's aircraft occupancy rate decreased slightly to 94 percent from 95 percent in the same period last year.
Revenue for the first quarter decreased by 0.5 percent year-on-year to €3.63 billion, missing analysts' expectations of €3.92 billion. Additionally, Ryanair's operating expenses rose by 11 percent annually, totaling €3.26 billion. The company attributed its cost increases partly to rising expenses, although hedging contracts against fuel price increases helped mitigate some of these costs.
Ryanair maintained its forecast for the total number of passengers for the current fiscal year, projecting between 198 and 200 million passengers. The airline also expects a slight rise in overall expenses, but believes its hedging strategies will help manage the impact of higher fuel costs and other expenses.
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