Ryanair finished its first fiscal quarter of 2024, spanning April to June, with a net profit of 360 million euros. This marked a 46% drop from the same period a year earlier, even though the airline carried a 10% higher number of passengers, totaling 55.5 million travelers, according to a Monday report from the Irish carrier.
The company faced pressure from airfares that were weaker than expected, ending around 49.07 euros on average, about 15% below the prices seen in the prior year from April to June, when averages stood at 41.03 euros. Ryanair attributes the decline to the absence of the first half of the Easter week, which fell in March, and to stronger price competition.
Regardless of the mixed results, the market response was sharp. The stock slid about 12.6%, with other sector players following suit, including easyJet, Wizz Air, IAG, and Lufthansa, which posted declines ranging from around 0.8% to 7% on the day.
Ancillary sales rose by 10%, reaching 1.3 billion euros (roughly 23.40 euros per passenger), while total revenues dipped by 1% to 3.63 billion euros. Operating costs increased by 11% to 3.26 billion euros, outpacing traffic growth slightly. Higher personnel and other costs were partly offset by savings in fuel hedging, though delays in Boeing deliveries contributed to the cost picture.
Despite these Boeing delays, Ryanair reiterated plans for a summer program described as the largest in its history, featuring more than 200 new routes and five new bases. The airline believes these steps will enable sustained growth in low fares during the 2025 fiscal year. This trajectory rests partly on extending leases for three Lauda-operated A320 aircraft through 2028.
Lower fares and demand outlook
Ryanair anticipates traffic to rise by about 8% for the full year ending March 31, 2025, projecting passenger numbers between 198 and 200 million, provided Boeing delivery delays do not worsen. The company expects strong demand from July through September, though prices are expected to remain below last year’s levels and generally lower than the summer peak.
The firm cautions that the year-end outlook remains contingent on avoiding adverse developments. Ongoing global tensions, staffing shortages, and capacity limits at air traffic control centers, plus the risk of further Boeing delays, could weigh on results. As of June 30, the fleet totaled 156 B737 Gamechangers, with plans to exceed 160 by late July and to reach 50 more before the year ends.
Shareholder returns
In May, the airline launched a share buyback program valued at 700 million euros and has completed more than half of that plan. Since 2008, Ryanair notes it has returned over 7.8 billion euros to shareholders. In September, the group plans to pay a supplementary dividend of 0.178 euros per share.