This week, Ryanair announced a €15M net profit, but has altered it’s overall guidance amid a series of disruptive factors.
One of the main factors has been delays in delivery of the Boeing 737 MAX aircraft, which has caused the airline to alter some of it’s scheduling.
Without further ado, let’s get into it…
Ryanair Financial Results…
The Boeing 737 MAX Equation…
On the Boeing 737 MAX issues, Ryanair CEO Michael O’Leary had this to say on how it affects their financials:
“At the end of Q3, Ryanair had taken delivery of 136 B737 Gamechangers. We expect to have up to 174 of these aircraft in our fleet by late June for peak S.24 (+50 from S.23), which would be 7 short of our contracted deliveries.”
“There remains a risk that some of these deliveries could slip further. We’ve a bumper S.24 schedule on sale with 169 new routes (total 2,600 routes), incl. our first 11 domestic routes in Morocco.”
“While travel demand remains high, we expect S.24 EU short haul capacity to be behind S.23 as competitors ground A320 aircraft in Europe due to the P&W engine issues (and expect these disruptions will run into 2026).”
“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 visited Seattle in Jan. and met with Boeing senior management. Boeing are increasing their QA resources in Wichita and Seattle.”
“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.”
What Is Ahead for Ryanair?
Looking ahead, Ryanair still predicts that traffic will increase by around nine per cent to 183.5m passengers.
However, they expect costs to rise due to recently agreed deals with various pilot unions incl. Belgium, Italy & the UK, as well as the upcoming partial unwind of free ETS carbon credits.
Because of this, they expect to reduce their profitability guidance from €1.85bn to €2.05bn to €1.85bn to €1.95bn.
All eyes will be on how the final quarter results will look for Ryanair, as well as how 2024 will perform for them as a whole.
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