May 20, 2024
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Ryanair Soars with Record €1.9bn Profit

Ryanair has reported record profits of €1.9 billion and announced the appointment of former UK Home Secretary Amber Rudd to its board. Despite record profits and increased passenger numbers, the airline anticipates lower summer fares due to softer-than-expected recent pricing.
Ryanair Soars with Record €1.9bn Profit
Winston Tjia - Unsplash

Ryanair, the Irish budget airline, has announced a record annual profit of €1.9 billion for the fiscal year ending March 2024. This marks a significant increase of over one-third compared to the previous year. The airline's success is attributed to a 9% increase in passenger numbers, totalling 184 million, which is 23% higher than pre-pandemic levels. Looking ahead, Ryanair expects to carry up to 200 million passengers in the current financial year.

Lower Summer Fares Anticipated

Despite the record profits, Ryanair has noted that recent pricing trends have been softer than expected. As a result, the airline plans to offer lower fares to attract customers, with prices expected to be "flat to modestly ahead of last summer."

Amber Rudd's Appointment

In a strategic move, Ryanair has appointed Amber Rudd, former UK Home Secretary, to its board as a non-executive director, effective 1 July 2024. Rudd, who has a background in investment banking and extensive experience in public service, is expected to bring valuable insights and governance expertise to the board. Her previous roles include energy and climate change secretary under David Cameron and nearly two years as home secretary under Theresa May. Since leaving politics, Rudd has worked in public relations and advisory roles, including positions at Darktrace and Centrica.

Environmental Commitments and Challenges

Ryanair, now the world's second-largest airline by market value, faces scrutiny as one of the EU's biggest polluters. The airline argues that its fleet renewal program, including the acquisition of more fuel-efficient aircraft, will help reduce carbon emissions per passenger. However, the total emissions of the airline industry are expected to rise with the increasing number of passengers.

Boeing 737 Max Deliveries

Ryanair's efforts to expand its fleet and improve fuel efficiency have been impacted by delays in the delivery of Boeing 737 Max aircraft. The airline expects to receive 12 new planes between March and July but will be 23 aircraft short of the contracted amount due to ongoing issues at Boeing. This delay is expected to shift some traffic growth to the second half of the year, potentially affecting revenue.

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