Air traffic: Expensive kerosene and Boeing problems cloud Ryanair’s future

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Ryanair CEO Michael O’Leary expects profits of 1.85 billion to 1.95 billion euros for the financial year to the end of March, the company announced in Dublin on Monday. It had previously expected a figure of up to 2.05 billion euros.

Ryanair earned 15 million euros in the Christmas quarter to the end of December, around 93 per cent less than the previous year. The company counted 41.4 million passengers, up seven percent on the same period last year, and sales rose 17 percent to 2.7 billion euros, thanks to higher ticket prices. However, major booking platforms such as Booking.com removed Ryanair flights from their schedules in early December. The airline has therefore reduced ticket prices. Additionally, rising kerosene expenses and rising pilot salaries have also eroded profits.

Meanwhile, O’Leary fears Boeing may deliver fewer new planes than expected by the summer. The executive currently assumes Ryanair will have 174 737 Max jets ready by the end of June – 50 more than last summer, but 7 fewer than agreed.

There is also a risk that deliveries will be further delayed. Following a near-crash involving Alaska Airlines’ 737-9 Max, Boeing is not allowed to expand production of the Max series as planned. (SDA)

Source :Blick