Ryanair Surpasses Profit Forecast, Adjusts Traffic Outlook
By Conor Humphries
DUBLIN (Reuters) -Ryanair, Europe's largest low-cost carrier, posted an after-tax profit for the three-month period ended Dec. 31 that beat analysts' forecasts on Monday, but revised down its passenger outlook on delays in Boeing aircraft delivery.
After tax-profit for the third quarter came in at 149 million euros ($156 million), significantly ahead of the 60-million-euro profit forecast in a company poll of analysts.
That was mainly due to a better-than-expected 1% increase in average fares in the quarter, compared with a fall of 7% during the previous quarter, Chief Financial Officer Neil Sorahan said, citing good last-minute bookings for Christmas and New Year holidays.
Ryanair, which makes most of its profit during the summer season, said it was "cautiously guiding" after-tax profit for the 12 months to March 31 in a range of 1.55 billion euros to 1.61 billion euros.
It is too early to give guidance on the coming summer, but early indications are that bookings are robust and European short-haul capacity is likely to be constrained, Sorahan said.
BOEING DELAYS
Ryanair said it expects to take delivery of nine Boeing 737 MAX aircraft ahead of its peak summer season, fewer than expected, and as a result will cut its forecast for passenger numbers in the 12 months to March 31, 2026, to 206 million from 210 million. An earlier forecast of 215 million was cut in November.
The final 29 aircraft of Ryanair's 210 MAX order will arrive by March next year, lifting traffic to 215 million passengers in the year to March 2027, he said.
Sorahan, who recently returned from a trip to Boeing's production facilities in Seattle, said the delays were disappointing but that he had a "strong level of confidence," that the nine aircraft would arrive on time.
"We can see big improvements in the [Boeing] factory. The quality of the fuselage ... have improved greatly, but they're just not going to get there for this summer," Sorahan said in an interview.
Ryanair, which has no aircraft orders with any other manufacturer, is not particularly concerned about Boeing's financial position, and that as a systematically important company to the U.S. economy it would be supported "come what may," Sorahan said.
($1 = 0.9564 euros)
(Writing by Conor Humphries; Editing by Christian Schmollinger and Sherry Jacob-Phillips)
