Cheaper air fares dented Ryanair profits in the six months to the end of September, but the carrier said it had record passenger growth.
The Irish airline reported on Monday that profits fell 18 per cent in the period to €1.79 billion from €2.18 billion during the same period in 2023.
Its shares slid around 3 per cent to €17.46 shortly after 8am on Monday following the news.
Ryanair carried a record 115 million passengers over the six months, the first half of its financial year. Revenue rose 1 per cent to €8.69 billion from €8.58 billion.
Its average fare slipped 10 per cent to €52 in the first half from €58 during the same period in 2023.
Michael O’Leary, chief executive, blamed the lower fares on higher interest rates, which put pressure on consumer spending, a drop in online travel agent bookings and the timing of Easter. This “necessitated more price stimulation that originally expected”, he added.
He pointed out that traffic was up 9 per cent despite repeated delays in ordered new aircraft from manufacturer Boeing.
“We continue to target between 198 million and 200 million passengers in full-year 2025, subject to no worsening of current Boeing delivery delays,” he said.
However, he cautioned that those delays, conflicts in Ukraine and the Middle East, and air traffic control short-staffing and restrictions, could affect the final outcome for the full year, which ends on March 31st.
“As is normal at this time of year, we have almost zero quarter four visibility,” Mr O’Leary said. Consequently the airline is not giving guidance for its full-year profit.
Ryanair also reported that it flew 18.3 million passengers in October, 7 per cent more than the 17.1 million it flew during the same month last year. It sold 93 per cent of the seats on its aircraft.
Boeing delivery delays prompted the group to trim growth plans for next year, Neil Sorahan, chief financial officer confirmed on Monday.
He noted that the group had originally hoped for 7.5 per cent growth, around 15 million extra passengers, but cut that to 5 per cent, which would see it fly 210 million people in the 12 months to March 31st 2026.
Striking workers at Boeing’s manufacturing plant in Seattle in the US are due to vote on 38 per cent pay increases late on Monday.
The airline was due to receive 11 aircraft this autumn, but just two have arrived. “I would not expect to see the other nine this side of January or February,” Mr Sorahan said.
He cautioned that a 33 million a year limit on passengers at Dublin Airport meant Irish passengers flying out of there would not benefit from cheaper fares.
The cap will prevent Ryanair from putting on extra flights at Christmas and other peak periods over the winter, which will drive up ticket prices at those times.
“And next summer you’re seeing capacity coming out,” he added, saying this would continue to push up fares from the country’s biggest airport.
Mr Sorahan added that Ryanair hoped a new transport minister appointed following a likely election in coming weeks could move to lift the limit.
Meanwhile, he predicted that air fares were more likely to rise in Europe into next year as mergers, delivery delays and Airbus engine overhaul problems squeezed capacity.
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