Ryanair Flies Back To Profit Lane In FY23, Says Boeing Delivery Delays May Hurt FY24 Traffic Expectations

Ryanair Holdings PLC RYAAY reported FY23 revenue growth of 124% Y/Y to €10.78 billion.
The company posted a net profit of €1.43 billion, vs. a net loss of €355 million a year ago, slightly better than the consensus of €1.425 billion per Reuters.
Scheduled revenues were up 161% Y/Y to €6.93 billion, led by traffic growth of 74% Y/Y to 168.6 million customers and a 50% Y/Y uptick in average fares to €41.
Ancillary revenue rose 79% Y/Y to €3.84 billion on higher traffic and a solid performance in priority boarding, in-flight sales, and reserved seating.
The load factor improved to 93%, compared to 82% in FY22.
Operating costs increased 75% Y/Y to €9.20 billion on higher fuel costs (+113% Y/Y to €3.90 billion).
Net cash generated by operating activities for FY23 totaled €3.89 billion. As of March 31 2023, net cash stood at €0.56 billion vs net debt of €1.45 billion a year ago.
The company’s fuel needs are around 85% hedged at approximately $89bbl for FY24, and 25% of H1 FY25 is covered at $77bbl.
As a part of its goals of equipping 12.5% of its flights with sustainable aviation fuel by 2030, the company recently signed/expanded deals with Repsol SA REPYY in Spain and Portugal, OMV AG OMVKY in Austria, Germany and CEE, Neste Corp NTOIY in Schiphol and Shell PLC SHEL in London and Dublin.
Also, earlier this month, the company disclosed ordering 300 new 737-MAX-10 aircraft from Boeing Co BA for $40 billion.
FY24 Outlook: Ryanair plans to grow traffic to around 185 million (+10% Y/Y). However, the company thinks Boeing’s recent delivery delays may push the growth target to lower profitable H2 FY24 and reduce it slightly.
The company expects FY24 revenues to increase sufficiently, covering over €1 billion rise in fuel costs, thereby leading to a modest increase in profits.
“Through A4E, and the EU, we are campaigning to accelerate reform of European ATC to eliminate avoidable flight cancellations/delays (something urgent in light of repeated French ATC strikes in Q1), which will substantially lower fuel consumption and CO₂ emissions,” commented CEO Michael O’Leary.
Price Action: RYAAY shares are trading higher by 1.00% at $101.29 premarket on the last check Monday.
Photo via Wikimedia Commons

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