Yet Ryanair, in releasing its quarterly results on Monday, announced a one-third collapse in pre-tax profits and plans to increase fares. The budget airline announced pre-tax profits of €24.4 million (£21.2 million) for the three months to December. This figure represents a dramatic 83% drop compared to the same time last year. The Italian regulator has fined the company a €256 million (£222 million) for supposedly “abusing its dominant position.” As a result, this fine was levied because the company excluded travel agencies—its own contractors—from access to travel services. Ryanair is appealing this historic fine, calling it “baseless.”
Despite this unexpected financial downturn, Ryanair is keeping a positive outlook on the future. The airline predicts a 4% increase in passenger numbers, with some 208 million people flying this year. Recently Michael O’Leary, the CEO of Ryanair, stated that the airline would see inflation on average fares. They forecast these increases to be 8% to 9% next year. This move marks the latest in a series of attempts by the company to increase revenues as it faces a pandemic-driven downturn.
Ryanair is heavily investing in its fleet to improve operational efficiency and to bring down costs. The airline plans to supplement its current 737 Next Generation planes with the more fuel-efficient MAX-10 model, which boasts 21% more seating capacity. The first of these 15 MAX-10s will be in service by spring 2027. This is a clear signal of Ryanair’s long-term commitment to modernizing the airline’s fleet.
In an unexpected turn of events, an online spat between O’Leary and Elon Musk over potential Wi-Fi services on flights led to a slight uptick in Ryanair’s bookings. O’Leary ruled out the option of providing onboard internet connectivity with Musk’s Starlink technology.
Ryanair’s outlook is tempered by extreme caution, with the airline conceding that threats continue to emanate from outside the airline’s control. O’Leary noted that the company’s forecast “remains exposed to adverse external developments,” including escalating conflicts in Ukraine and the Middle East. There were many hardships to overcome, yet he was undaunted. Newman had previously forecast Ryanair’s full-year net profit to jump by €2.23 billion (£1.9 billion).