Ryanair reports a successful quarter with record passenger numbers and profits that have quadrupled. Although Group CEO O’Leary is upbeat about the near future, he does caution against the potential impact of inflation on wintertime consumer spending.
Ryanair’s first quarter results were the best they’ve ever been. The largest low-cost carrier in Europe said that profits for the first quarter of fiscal 2023/24, which concluded at the end of June, doubled to 663 million euros.
In addition to surpassing its previous fiscal first quarter high of 397 million euros (2017), this is the first quarter in which Ryanair has returned to pre-Corona levels. In both May and June, Ryanair broke its own monthly passenger records.
Michael O’Leary, group CEO, expressed cautious hope that he would be able to significantly boost earnings in the upcoming months. The summer season sees strong demand, according to O’Leary. When there are a quarter more seats to fill in the winter, Ryanair will likely need to enhance it with cheaper pricing.
The management expressed concern about the effects of these macroeconomic changes. “Consumer spending in the second half of the year could be impacted by consumer price inflation, higher interest rates, and mortgage fees.” But ultimately, he claimed, this would benefit Ryanair’s expansion since passengers would still travel but would be more cost conscious.
Ryanair reduced its March 2024 passenger volume estimate from 185 million to 183.5 million from 168.6 million due to delayed deliveries by American aircraft manufacturer Boeing. O’Leary claims that the maker of the aircraft has suggested that delivery of some new aircraft may be postponed from April to June 2024.