Ryanair cuts full-year profit forecast

(Sharecast News) - Ryanair cut its full-year profit forecast on Monday as it posted a 93% decline in third-quarter net profit, as higher fuel costs offset revenue gains and after its flights were removed from online travel agents. Net profit fell to €15m from €211m in the same period a year earlier. Ryanair said traffic rose 7% during the quarter to 41.4m and average fares grew 13% to over €42, but the fuel bill was 35% higher at €1.2bn.

Ryanair now expects FY24 profit after tax of between €1.85bn and €1.95bn, down from previous guidance of €1.85bn to €2.05bn. It cautioned that this guidance and the full year results remain "heavily dependent" on avoiding unforeseen adverse events in the fourth quarter, such as the Ukraine war, the Israel-Hamas conflict and further Boeing delivery delays.

The company said: "While traffic and fares were ahead of prior year, close-in Christmas/New Year loads and yields were softer than previously expected as Ryanair lowered prices in response to the sudden (but welcome) removal of flights from OTA Pirate websites in early December."