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Ryanair profits fell by nearly a fifth, as lower peak-season fares combined with higher costs, driven by Boeing order delays.
Only 172 of 300 Boeing 737 Max-10 planes have been delivered to Ryanair, with the company struggling to maintain its quota following a series of setbacks to the manufacturer.
“While we continue to work with Boeing leadership to accelerate aircraft deliveries ahead of peak summer 2024, the risk of further delivery delays remains high.
We believe it is therefore sensible to moderate Ryanair’s full-year traffic growth target to 210 million passengers (previously 215 million) to reflect these delivery delays, as we wish to avoid being over-scheduled, over-crewed and over-costed as we were [this summer]”, said Michael O’Leary, Ryanair CEO, speaking to The Guardian.
Summer fares were down by average by 7%, but the airline still carried 9% more passengers this year than the same time last year.
Ryanair’s reported profits for the six months to the end of September were £1.5 billion, 18% lower than the previous period last year.
This news comes as Boeing US west coast factory workers accepted a new contract offer, ending the seven-week strike.
Union members voted 59% in favour of a new contract, which includes a 38% pay rise over four years. The new contract was secured following talks between both sides that was mediated by the White House
Shares in Boeing rose by 1.9% in pre-market trading on the back of the news.
However, Ryanair CFO, Neil Sorahan, said the company did not expect to receive new Boeing planes until January or even February, because of the complex nature of restarting the supply chains, according to The Guardian.
Alternatively, Airbus, Boeing’s main rival continues to make strides in new orders. Ethiopian Airlines became the first African Carrier to receive an Airbus A350-1000, which will operate on routes including Washington D.C, Paris and London.
Meanwhile, Singapore Airlines will invest $835 million in upgrading long-haul Airbus A350 cabins.
However, in the most striking story, Riyadh Air, a Saudi start-up airline has announced that it has placed an order for 60 Airbus aircraft to join its fleet. The country’s newest airline is set to launch its maiden flight next year, with a goal of reaching 100 destinations worldwide by 2030.
