Summary Ryanair's chief executive has publicly criticized Boeing for continuous delivery delays. According to Michael O'Leary, the low-cost carrier was set to lose about €500 million ($556.3 million) in revenue due to delivery delays in FY2025.
In addition, Ryanair's yields have worsened as it had to address the worsening financial condition of its travelers with additional price stimulations. Michael O’Leary, the chief executive of Ryanair Group , has continued to voice his frustration with Boeing and the manufacturer’s inability to deliver aircraft on time. Losing out revenue According to a report issued by the AFP and cited by several news outlets, including Yahoo Finance , O’Leary, the chief executive officer (CEO) of Ryanair , said that Boeing’s delivery schedule has impacted its growth this year.
As a result of the fewer aircraft it would receive during the year, it expected to carry less than the 205 million passengers that it had previously expected. “We were supposed to get seven in July. We got five.
We were supposed to get ten in August. We're going to be lucky if we get five.” It has been very frustrating to deal with the manufacturer, O’Leary added.
As such, the low-cost carrier should end its current fiscal period with around €500 million ($556.3 million) fewer revenues. Ryanair warned that any further delivery delays could worsen its situation in an already difficult fare environment.
Receiving compensation from Boeing In Q1 FY2025, Ryanair ended the period with revenues of €3.65 billion ($4 billion), while its FY2024 revenues were €13.4 billion ($14.
9 billion). With its Q1 FY2025 results announcement, Ryanair stated that it expected passenger traffic to grow 8% year-on-year (YoY), with the low-cost carrier planning to carry around 200 million passengers. However, that was subject to a stable or not worsening Boeing 737 Max aircraft delivery schedule, the airline said.
“The final FY25 outcome remains subject to avoiding adverse developments during FY25 (especially given continuing conflicts in Ukraine and the Middle East, repeated ATC short-staffing and capacity restrictions, or further Boeing delivery delays).” Nevertheless, O’Leary now said that while Boeing was paying “modest amounts of compensation,” the carrier would rather have the aircraft, which would have enabled its faster growth. To celebrate the anniversary, the low-cost carrier has launched a sale for its passengers.
Yields normalizing In Q1 FY2025, Ryanair said that its yields had declined during the period 6% YoY despite traffic growing 10% YoY. “[..
.] our customers enjoyed substantial savings thanks to 15% lower fares due, in part, to the absence of the first half of Easter, which fell into March, and more price stimulation than we had previously expected.” Looking forward, the carrier said that while demand has been strong in Q2 FY2025, the pricing environment remains softer than expected, and the period’s revenues should be lower than during the same period in FY2024.
In his latest statements, O’Leary said that the flight ticket declines were slowing and that by the end of FY2025, Ryanair’s average prices should be 5% lower YoY. In Q1 FY2025, the average fare was €49.07 ($54.
61), which was 15% lower than during the same period in FY2024. Its average ancillary revenue per passenger was flat YoY. Ryanair is scheduled to release its Q2 FY2025 results on November 4, 2024, with the fiscal period ending on September 30.
For now, Ryanair plans to not fly to Israel until September 30..
