Ryanair reported a net profit of 2.19 billion euros for the first nine months of the fiscal year ending December 31, marking a 39% rise from the same period a year earlier, according to the company’s statement released on Monday.
In the third quarter, the group posted a net profit of 15 million euros, down 93% from 211 million euros in the prior year quarter, as higher fuel costs offset gains in revenue.
Revenue climbed 26% to 11.27 billion euros for the first nine months, while operating costs increased by 25% to 8.88 billion euros.
Ryanair’s chief executive, Michael O’Leary, underscored the need for urgent reform of the European air traffic control system, arguing it would drive more meaningful environmental improvements in air travel across the European Union.
He criticized the European Commission for not taking action on this issue and called on Ursula von der Leyen to defend a fully open single air transport market and protect it during disruptions caused by strikes.
Lowering the estimates
Ryanair has lowered its forecast for net profit this year to a range of 1.85 billion to 1.95 billion euros, down from the previous guidance of 1.85 to 2.05 billion euros.
The management explained that the outlook and full-year results depend largely on avoiding unexpected negative events in the fourth quarter, including geopolitical conflicts, ongoing regional tensions, and possible delays in Boeing aircraft deliveries.
The company will pay an interim dividend of 0.175 euros per share on February 28, as announced previously.
Average rates are increasing
Details show traffic rose 7% to 41.4 million passengers in the third fiscal quarter. Average fares increased 13% to just over 42 euros, supported by solid mid-October performance and strong travel demand around the Christmas and New Year holidays.
The carrier noted that load factors and pricing were affected by the rapid withdrawal of several pirate OTAs from booking systems in early December, which contributed to lower-than-expected volumes in some routes.
Changes in the board of directors
The leadership reshuffle also brought notable changes. A former chief executive of an Italian air navigation services provider joined Ryanair’s board as a non-executive director, taking up the post on February 1.
Additionally, Louise Phelan and Michael Cawley will not stand for re-election at the upcoming general meeting, which is scheduled for September, and both will depart from the board at that time.
The company announced the appointment of Róisín Brennan as a senior independent director beginning April 1.