Ryanair has reported a higher-than-expected after-tax profit for the three months to December 31, but warned of a reduction in passenger traffic expectations due to delays in the delivery of Boeing aircraft.
For the third quarter, the airline posted an after-tax profit of €149 million, well above the €60 million forecasted by analysts in a company poll. This strong performance was primarily driven by a better-than-expected 1% increase in average fares, reversing a 7% drop in the previous quarter. Ryanair’s Chief Financial Officer, Neil Sorahan, attributed the growth to a surge in last-minute bookings over the Christmas and New Year holidays.
Despite the solid third-quarter results, Ryanair maintained a cautious outlook for the year, forecasting a full-year after-tax profit for the 12 months to March 31 in the range of €1.55 billion to €1.61 billion. While it is too early to provide guidance for the summer season, Sorahan noted that early bookings appear strong and that European short-haul capacity may be limited, which could benefit Ryanair.
Ryanair’s group CEO, Michael O’Leary, echoed Sorahan’s sentiment, suggesting that the potential capacity constraints could be advantageous for the airline in the summer of 2025.
The airline reported that it carried 44.9 million passengers in the third quarter, an increase of 9% from the 41.4 million passengers in the same period last year. Revenue per passenger also rose by 1%. Total revenue for the quarter reached €2.96 billion, a 10% increase from the previous year, while operating costs grew by 8% to €2.94 billion, partly due to higher staffing costs and delays in Boeing aircraft deliveries. However, savings from fuel hedging helped offset these increases.
Ryanair also lowered its passenger traffic forecast for the year to March 31, 2026, reducing it from 210 million to 206 million due to delays in receiving Boeing MAX aircraft. The airline had previously cut its forecast to 210 million in November. It is now expected to receive only nine MAX aircraft ahead of the peak summer season, fewer than initially anticipated. However, Ryanair remains confident that the remaining 29 aircraft of its 210 MAX order will be delivered by March 2027, boosting traffic to 215 million passengers.
Sorahan, who recently visited Boeing’s production facilities in Seattle, expressed confidence that the nine MAX aircraft would be delivered on time, despite the delays. He acknowledged that while the Boeing factory has shown significant improvements, the planes would not arrive in time for this summer. O’Leary added that Boeing is expected to produce 38 737 MAX jets by the end of summer, with the possibility of increasing that to 42 by October, subject to approval from the US Federal Aviation Administration (FAA).
Despite the delays, Ryanair has expressed little concern about Boeing’s financial position, emphasizing the company’s importance to the US economy and its confidence in Boeing’s long-term support.
Following the report, Ryanair’s shares saw a boost in Dublin trading.
