Ryanair Holdings plc reported a significant drop in third quarter profits, attributing the decrease to increased fuel costs which counterbalanced revenue gains. Profits attributable to equity holders of the parent company fell from €202.1 million in the previous year to €14.8 million, or €0.0129 per share.
Operating costs rose by 26% to €2.7 billion, primarily due to a 35% increase in fuel costs, increased staff expenditure, and earlier than normal maintenance timings. However, traffic for the quarter increased by 7% to 41.4 million and average fares shot up by 13% to just over €42 - a reflection of a strong October midterm and peak travel over Christmas and New Year.
Total operating revenues for the quarter grew to €2.70 billion, an increase from the €2.31 billion recorded in the previous year. Even with slightly lower third quarter load factors and delayed Boeing deliveries, the company maintains a target traffic of 183.5 million for fiscal year 2024.
The company has revised downwards its post-tax profit guidance for fiscal year 2024, now estimating a range between €1.85 billion to €1.95 billion, a decrease from the previous range of 1.85 billion euros to 2.05 billion euros.
