CEO Michael O'Leary attributed softer pricing to a 'recessionary feel' in Europe or weaker consumer sentiment.
Operating costs were up 24%, and jet fuel bill soared by 32%.
Passenger numbers increased by 23% to 184 million, and revenue rose by 25% year-on-year to £13.44 billion.
Ryanair announced a £700-million-euro share buyback program.
Ryanair reported record annual profits of £1.92 billion in the full year to March 2024.
Low-cost carrier Ryanair reported record annual profits on Monday, as passenger and revenue growth offset sharply higher operating costs, but flagged a weaker pricing environment in the current quarter. The Dublin-based firm said profit after tax in the full year to March 2024 jumped 34% to £1.92 billion (£2.09 billion), while revenue rose 25% year-on-year to £13.44 billion. The airline served 184 million passengers, a 23% increase from before the Covid pandemic. Higher traffic numbers and an increase in fares helped Ryanair overcome a spike in costs: operating costs were up 24% year on year, and the airline's jet fuel bill soared 32%. The airline also announced a £700-million-euro share buyback program, which Chief Financial Officer Neil Sorahan said reflected a 'very strong' balance sheet. 'Our priorities have been very much: restore the pay for our people after Covid, bring in pay increases, pay down the debt,' Sorahan told CNBC's 'Squawk Box Europe.' The airline's Dublin-listed shares were down 0.46% in mid-morning trade. Analysts at Deutsche Bank noted that recent pricing had been softer than expected and said the level of the buyback may also be below some expectations. Ryanair CEO Michael O'Leary said softer pricing may be due to a 'recessionary feel' in Europe or weaker consumer sentiment. Pricing over the year was impacted by the sudden withdrawal of Ryanair flights from numerous online travel agents (OTAs) in December. Sorahan told CNBC the move was 'surprising but not unwelcome,' adding that Ryanair had now signed fresh agreements with several large OTAs. He said a positive was that Ryanair was now dealing directly with more customers rather than through third parties. Other challenges for Ryanair include the ongoing delay to deliveries of its new Boeing aircraft and the grounding of numerous Airbus aircraft due to engine issues.
It is unclear how much the grounding of numerous Airbus aircraft due to engine issues has impacted Ryanair's profits.
The article mentions a 'sudden withdrawal' of Ryanair flights from numerous online travel agents (OTAs) in December, but it does not specify which OTAs or why this happened.
Revenue grew by 25% year-on-year to 13.44 billion euros
Passenger numbers served were up by 23% compared to pre-Covid levels, reaching 184 million passengers
CEO Michael O’Leary announced a €700-million-euro share buyback program due to a strong balance sheet
Accuracy
No Contradictions at Time
Of
Publication
Deception
(80%)
The article reports facts about Ryanair's financial performance and does not contain any editorializing or author opinions. However, the author does mention that 'recent pricing had been softer than expected' and quotes an analyst stating 'we fear the further softening of the pricing commentary for peak summer may win the day.' These statements imply a negative outlook on Ryanair's future pricing and could potentially manipulate readers' emotions. Additionally, there is no disclosure of sources for these statements.
recent pricing had been softer than expected
we fear the further softening of the pricing commentary for peak summer may win the day
Ryanair plans to take delivery of 12 new Boeing 737 Max aircraft between March and July
Amber Rudd appointed as non-executive director on Ryanair’s board on July 1, 2023
Accuracy
Ryanair reported record annual profits of €1.9bn (£1.6bn)
Number of passengers increased by 9% to 184 million
Summer fares are lower than previously expected
Deception
(80%)
The article contains selective reporting as it only mentions the increase in profits and lower summer fares without mentioning any potential decrease in quality of service or other negative aspects. The author also makes no attempt to hide his opinion when stating that 'recent pricing is softer than we expected' and 'prices will be flat to modestly ahead of last summer'. This editorializing is a form of deception as it presents the information in a way that may not accurately reflect the situation.
The Dublin-listed company said it expected to carry as many as 200million passengers in the current financial year, but added that 'the prices it could charge were lower than expected in recent weeks'.
Michael O’Leary, the Ryanair chief executive, said: ‘We plan to deliver as much growth as possible for passengers and airport partners in [summer 2024], although these delays mean more traffic growth will occur in lower yielding [second half] than planned.’
Rudd was an investment banker before becoming an MP, before resigning in 2018 in relation to the scandal over the mistreatment of the Windrush generation of migrants to the UK. She did not seek re-election in 2019.
