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Ryanair Sees Strong Q3 Profit Growth Amid Challenges
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Ryanair Sees Strong Q3 Profit Growth Amid Challenges

Ryanair ( (RYAAY) ) has released its Q3 earnings. Here is a breakdown of the information Ryanair presented to its investors.

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Ryanair Holdings plc, Europe’s largest airline group, operates in the aviation sector, connecting numerous airports across various countries with a fleet of over 600 aircraft. In its latest earnings report, Ryanair announced a substantial increase in its third-quarter profit, reaching €149 million, a significant rise from the previous year’s €15 million. This improvement was driven by a 9% growth in passenger traffic, totaling 45 million passengers, and slightly higher fares due to strong holiday bookings. However, the cumulative nine-month profit saw a 12% decline compared to the previous year, attributed to an 8% reduction in airfares.

Key financial highlights from the report include a 10% increase in total revenue for the third quarter, reaching €2.96 billion, while operating costs rose by 8% to €2.93 billion. Ryanair also reported a notable improvement in ancillary revenues, which increased by 10%, and highlighted its ongoing fleet expansion with the introduction of new Boeing 737 ‘Gamechanger’ aircraft. The company’s strong balance sheet is supported by a BBB+ credit rating, with €2.77 billion in gross cash and a net cash balance of €75 million at the end of the quarter.

Ryanair’s strategic focus remains on maintaining a cost advantage over competitors, facilitated by its fleet of unencumbered aircraft and fuel hedge savings. The company has successfully completed over half of its €800 million share buyback program and declared an interim dividend. Despite challenges such as Boeing delivery delays, Ryanair plans to expand its capacity, targeting 206 million passengers by FY26, with a long-term goal of reaching 300 million passengers annually.

Looking ahead, Ryanair continues to navigate external challenges, including potential further Boeing delays and operational disruptions. Nevertheless, the company’s robust financial position and strategic initiatives position it well for future growth, with expectations of nearly 200 million passengers in FY25. The management remains cautiously optimistic, projecting a full-year profit in the range of €1.55 billion to €1.61 billion, subject to external conditions remaining stable.

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