Proactive Investors - Ryanair (LON:0RYA) reported a net profit of €15 million (£12.8 million) in the third quarter, marking a dramatic 93% year-on-year reduction from €211 million as higher fuel costs bit into the bottom line.
However, the broader trend remains positive, with net profits over the nine months ending 31 December up 39%.
Customer traffic was up 7% in the third quarter on a yearly comparison though Christmas and New Year load yields were “softer than previously expected” Ryanair acknowledged.
This was partially due to lowered prices in response to what Ryanair called the “welcome removal of flights from online travel agent pirate websites” in December.
Revenue per passenger saw a 9% increase, bolstered by ancillary revenues.
The airline's fleet expansion continued with the addition of 136 B737 ‘Gamechangers’, part of its strategy to enhance operational efficiency.
Speaking on the crisis engulfing Boeing (NYSE:BA) following a string of aircraft malfunctions, Ryanair said: “We continue to work closely with Boeing to minimise delivery delays and improve quality control in both Wichita and Seattle.
“While the recent MAX-9 grounding was a disappointing setback, we don’t expect it to affect the MAX-8 fleet or the MAX-10 certification.
“We have run extra checks on our recent B737 deliveries and have noted improvements in quality with fewer delivery defects.
“However, Boeing have more work to do to improve quality, reduce delivery delays, and we fully support the initiatives that Dave Calhoun (CEO) and Brian West (CFO) are taking to improve Boeing’s performance and production.”
Looking ahead, Ryanair maintains a positive outlook, targeting approximately 183.5 million passengers for 2024.
However, it has narrowed its profit after tax guidance to between €1.85 billion and €1.95 billion.
“While we will benefit from the first half of Easter traffic falling in late March, this is unlikely to fully offset the weaker than previously expected load factors and yields in late third quarter and early fourth quarter,” read the trading update.