Ryanair Reports Strong Forward Bookings Despite Profit Drop

By Conor Humphries
DUBLIN (Reuters) – Budget airline Ryanair announced on Monday that forward bookings are strong and declines in average fares are moderating following a difficult summer that saw profits and ticket prices drop.

The Irish airline, which is Europe's largest in terms of passenger numbers, reported an 18% decline in after-tax profit for the six months ending September, its crucial summer season. Average fares were down by 10%.

However, Group Chief Executive Michael O'Leary indicated that fares in the current quarter would be only "modestly lower" compared to the same period last year.

O'Leary stated, "Forward bookings are strong, demand is strong, and the (ticket) price declines appear to be continuing to moderate."

Chief Financial Officer Neil Sorahan mentioned that fare declines in the quarter ending December are likely to be below 5%. He also expressed hope that constrained market capacity and lower interest rates would create a more favorable environment for ticket prices next year.

The after-tax profit for the half year reached 1.79 billion euros ($1.95 billion), aligning closely with the 1.8 billion euro profit predicted in a company analyst poll.

As of Friday, Ryanair shares closed at 18.02 euros, reflecting a 5.5% year-to-date drop. The stock dipped to 13.41 euros in July after the company reported profits were nearly halved for the three months ending June, but it rebounded following more optimistic commentary regarding late summer fares.

Boeing Delays

Ryanair announced plans to lower its passenger growth target for the financial year ending March 31, 2026, adjusting it from 215 million to 210 million passengers due to delivery delays from Boeing (NYSE:BA).

This is based on the expectation that Boeing will deliver 15 of the 30 737 MAX aircraft originally scheduled for next summer; however, Sorahan warned that "there is a high risk around that number" due to a recent strike at Boeing.

Boeing’s shares rose by 3.5% on Friday amid speculation that the planemaker's U.S. West Coast factory workers will approve a new wage offer, potentially ending a seven-week strike that has affected jet production and impacted the company’s finances.