Ryanair experiences turbulence as profits plummet 

Fuel costs dent Ryanair profits

Ryanair boss, Michael O'Leary. Credit: katatonia82/Shutterstock.com

Is Ryanair facing a difficult future? The airline has recently disclosed a significant drop in profits, attributing this downturn to soaring fuel prices and changes in its online presence.

On Monday, January 29, Ryanair reported a dramatic decrease in after-tax profits for the quarter ending December, plummeting to €15 million from the previous year’s €211 million.

This decline comes amid a 35 per cent increase in the group’s fuel expenses, now totalling €1.2 billion. These costs have eclipsed the 17 per cent growth in revenue, painting a concerning financial picture for the airline.

Fuel costs and online presence impact

The fuel bill’s surge is not the only challenge Ryanair faces. The airline’s visibility on the web took a hit when several online travel agents, including prominent names like Booking.com, Kiwi, and Kayak, removed Ryanair from their platforms.

In response, the airline reduced its prices, a move necessary to maintain seat occupancy but one that impacts ticket revenues.

Michael O’Leary, Ryanair’s chief, shared his insights: ‘While we will benefit from the first half of Easter traffic falling in late March, this is unlikely to fully offset the weaker-than-previously-expected load factors and yields late in the third quarter and early fourth quarter.’

He emphasised that the final yearly results hinge on avoiding unexpected negative events, referencing global concerns like the Ukraine conflict and the Gaza situation.

Challenges ahead

Ryanair’s strategies to counter these setbacks include a new partnership with Loveholidays, marking its first collaboration with an online travel agent. This move comes after the airline’s repeated objections to other online travel agents selling its flights, often without authorisation.

Ryanair has accused firms like Kiwi.com, Opodo, eDreams, and Lastminute.com of overcharging customers. Moreover, the issue of not receiving passengers’ contact details complicates communication for travel updates and refund processing.

The airline now anticipates an after-tax profit of between €1.85 billion and €1.95 billion for 2023, a reduction from its previously estimated range of €1.85 billion to €2.05 billion.

This adjustment reflects the company’s efforts to adapt to the changing dynamics of the aviation industry and the global environment.

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Written by

John Ensor

Originally from Doncaster, Yorkshire, John now lives in Galicia, Northern Spain with his wife Nina. He is passionate about news, music, cycling and animals.


    • Peter Dare

      01 February 2024 • 11:30

      Could it be that people are waking up to the terrible service they get?

    • CCW60

      01 February 2024 • 13:58

      Another corporate head in denial and out of touch with their customer base, making excuses for bad service, hidden fees and charges for various things. Could it be people just don’t trust them and don’t want to fly with their airline anymore? Let’s not look at that possibility. Instead blame it on everyone and everything else! It’s been poorly run for a long time.

    • Robert Marshall

      01 February 2024 • 14:21

      They have gone cashless this must be losing them millions as people normally spend their euros they have left on the flight back , not anymore and the service with no magazines and shouting out what the meals are is a joke .

    Comments are closed.