In response to the removal of its flights by certain online travel agents in December, Ryanair has revised its profit forecast for the fiscal year ending March 2024. The airline disclosed on Monday that it anticipates an after-tax profit ranging between €1.85 billion and €1.95 billion (US$2 billion to US$2.1 billion), marking a downward adjustment from its initial November projection of €1.85 billion to €2.05 billion.
Despite the adjustment, the expected profit would still surpass Ryanair’s previous record annual after-tax profit of €1.45 billion in 2018. The airline attributed the profit trim to the necessity of reducing fares to fill seats, following the cessation of flight sales by online travel agents. Ryanair had accused these agents of imposing unauthorised additional charges, prompting legal action.
The abrupt decision by online travel agents is projected to have a potential impact on yields per passenger during the first three months of 2024, according to Ryanair. Additionally, due to lower load factors and increased productivity pay agreed upon with staff, the airline now foresees a rise of approximately €2.50 in full-year ex-fuel unit costs.
In its third-quarter financial report, covering the three months ending December, Ryanair earned €15 million, falling short of the €49 million forecasted in a company poll of analysts. (£1.00 = €1.17 at time of publication).
