Ryanair's quarterly profit misses estimates, shares sink.

Calahonda52

https://www.rte.ie/news/business/2024/0722/1461099-ryanair-quarterly-results/

Chief Financial Officer Neil Sorahan said he thought the weakness in fares was simply an issue of consumers being "a little bit more frugal, a bit more cautious."

"I think we've just had two years of double-digit (percentage) growth, both on fares and on traffic, and so there's a bit of push back," 

So time for some payback

StreetLight

The end is not nigh for air travel. We're on an island.

Padre_Pio

To echo your own quote

"I think we've just had two years of double-digit (percentage) growth, both on fares and on traffic" 

This is a bump in the road for Ryanair. Their shares are already higher than most other low-cost airlines

john boye

It's possible that the post-covid travel boom has finally fizzled out and that along with a lot of people having less money has contributed to it. Quite a leap to go from that to the end being nigh for air travel though.

beachhead

Ryanair has 1 billion euro or is it GBP in reserve.They won't be disappearing anytime soon.

bikeman1

My view is that they priced too high for the Summer months at the start of the year and got a little too greedy. Yes they can charge what they want to Malaga on a summer Saturday but with 2 adults and 2 children coming in at €1,000-€1,200 return without seats and bags etc. people are left with a sour taste in their mouths.

There has been years of inflation and interest rate rises throughout Europe which has eaten away at many people’s disposable income.

They are still making good profits. There is probably some additional expense items in there too. They also increased wages as well and that will be in full flow.

Finally Easter fell on 31/3/24 which meant all the outbound and some inbound travel for Easter went into Ryanair’s Q4 for FY24.

There’s always more to a set of accounts than the headline figure. They also want to flog the remaining capacity for Aug-Oct

Atlantic Dawn

A lot of airlines still havn't recovered to their pre COVID numbers, Ryanair have been growing, last month was their most passengers flown in a single June ever. Oil prices have stabilised, their biggest issue is the delay with Boeing deliveries.

chrisd2019

https://www.boards.ie/discussion/2058360929/ryanairs-quarterly-profit-misses-estimates-shares-sink-is-the-end-nigh-for-air-travel

Definitely not the end, only a temporary set back in money terms, still plenty of growth in aviation as its cost has not really risen compared to peoples incomes, allowing for pay rises and inflation.

Recently booked a holiday to Spain for August, following all the various charges the cost of flights is almost the same as paid precovid.

As a long-term (20 year +) shareholder in Ryanair, am not the least bit worried either.

cdeb

Unfortunately - given air travel's clear link with climate change - it's going to keep growing as immigration/emigration keeps moving people further and further around the world. We should all be looking to restrict it and cut back on it, but that won't happen. We'll burn the planet up, but the shareholders will be happy.

It was only earlier in the year flightradar24 was reporting all-time high numbers of commercial aeroplanes in the air at any one time. So that doesn't sound like an end is nigh at all.

The Helpful Engineer

Mick seems to be an over enthusiastic salesman for Boeing, rather than Ryanair CEO, he keeps buying Boeing no matter what. God knows what will happen to the share price if there is another issue with the max.

peterofthebr

If share price stays where it is tomorrow, I think I'll buy a few shares.to sell when they go up 80c or more

- money never sleeps

NSAman

https://www.boards.ie/discussion/comment/122413845#Comment_122413845

So what would you suggest to stop emigrants visiting family? Not allow them? Limit the number of flights a person is allowed to take? Would this apply to Green Campaigners like I don't know…Al Gore? Using his wife's private jet to go shopping?

Air Travel is here to stay, people need to travel, whether its for personal enjoyment or work or returning home.

In the future economies associated with fuels will make it more "green" it already has done so by reducing emissions by somewhere in the order of 20-30% with new engines etc. Different fuels will increase this over the coming years.

The figures from Ryan air are part of the global downturn. People just do not have as much money as previously, inflation is cutting into everyone's budgets.

cdeb

So what would you suggest to stop emigrants visiting family?

Cut right down on emigration. Companies prattle on about ESG and what they're doing for the environment but then recruit cheap labour from Brazil because it's a bit cheaper, or recruit IT staff from India/China and so on - should be banned if we've any interest in addressing climate change.

And similarly this should be talked about and even stigmatised when Irish people talk of moving to Australia, with all the carbon that's inevitably going to produce.

Excise duty on air fuel (like there is at the pumps) would also help. But general education around the area is sorely lacking, as your post indicates. The vast majority of the world (something like 85%) has never been on a plane but you think we can't do without it? One return trip to India or China or Vancouver or Brazil will generate in the order of five tonnes CO2e per person - a year's worth of emissions if we're going to keep to 1.5 degrees of warming - and you think it's fine to increase the subset of the population that does that in two days?

Emissions have not reduced by 20%-30% at all - that's a real twisting of the facts. Some engines may have achieved it, but what's the point if air travel continues to increase? Carbon emissions overall will continue to increase, even with slightly more efficient engines. Waiting for further tech isn't something we have time for

It's not just air travel needs to be looked at of course - but equally it really does need to be immediately addressed as one of the larger and one of the fastest-increasing sources of carbon.

Cookiemunster

https://www.boards.ie/discussion/comment/122414644#Comment_122414644

It is not one of the larger sources of carbon. The whole airline industry is responsible for around 2.5% of global emissions. Power generation, industry, ground transport, agriculture and heating each account for far larger CO2 emissions.

Noxegon

https://www.boards.ie/discussion/comment/122414644#Comment_122414644

In my industry recruitment from places like South America has nothing to do with cost – it's very often because you can't actually get as many people as you need with the required skills from the local market. Training and education can mitigate that to some degree, but there's a lead time for that to happen – hence the need for immigration.

Regardless, when these people arrive in Ireland they're paid on the same salary scale as local employees.

BringBackMick

a lot of price gouging from Ryanair this summer. I’ve avoided unless an absolute necessity.

Whatever the situation . Charging 400€ one way from Central Europe before any seats or bags is taking the mick

but obviously this is a Ireland centric opinion. We get especially fleeced by airlines. Prices between other European hubs more reasonable

—

And obviously these are fares 3-5 days out but sometimes needed and have never been at these levels . Usually 150-200€

tohaltuwi

https://www.boards.ie/discussion/comment/122415109#Comment_122415109

the other hubs are competing with rail, we can’t get a train to continental Europe, so they can goudge us all they like.

BringBackMick

seems unfair that 90% full flights to Stansted from Europe peak at around 130-150£ but to Dublin can hit 400€+

Thanks MOL for looking after your countrymen and not ripping us off

BringBackMick

love to see the profitability on Irish routes versus others published before MOL goes on the airways again waxing lyrical about how great Ryanair is for Ireland inc

Donald Trump

https://www.boards.ie/discussion/comment/122414837#Comment_122414837

That's all relative. Something that causes 2.5% of global emissions is fairly large when you consider that the majority of the world's population will never take a flight. And of those that do, only a few hours of the year will be spent in actual flight.

Geuze

https://www.boards.ie/discussion/comment/122415109#Comment_122415109

Average fares fell, that is why the share price fell.

BringBackMick

https://www.boards.ie/discussion/comment/122415307#Comment_122415307

love to see breakdown for Dublin fares. They definitely did not fall. Any way to access that data ?

Furze99

Back to ferries in due course, business meetings online as much as possible. Air travel will rise in costs and become a luxury rather than some sort of 'right' that people have become accustomed to.

Cookiemunster

https://www.boards.ie/discussion/comment/122415435#Comment_122415435

Ryanairs fares literally got cheaper. Their passengers numbers were up 10%. They still made a profit of €360m in Q1.

None of that lines up with air travel becoming a luxury rather than right.

Furze99

https://www.boards.ie/discussion/comment/122415479#Comment_122415479

The bubble will burst - it's simply unsustainable. Many of us grew up and remember well when the ferry to Holyhead was the norm.

BringBackMick

love to see Wizz come into market in Dublin and create some real competition with Ryanair

Allinall

https://www.boards.ie/discussion/comment/122415487#Comment_122415487

Have you looked at ferry prices recently?

LiamaDelta

In 2023 easter was in Q1 however this year it was in Q2.

Ryanair are on record saying how much the passenger cap in Dublin is going to 'drive up fares'. They are never challenged on why they are putting up fares just because they can. Obviously it's a free market and that's fine, but they could keep the fares lower if they wanted to.

TheDriver

I concur re summer fares, they were crazy money from the outset this year. This coupled with flights to some family holiday spots being serviced by planes based there resulted in flights landing at your holiday destination at 1-2am which was something people probably didn't want. Lastly, Aer Lingus put on more holiday flights this summer and prices were attractive along with flight times. Plus their "free" 10kg bag is a major bonus on the price if you intended to purchase bags anyways

Allinall

https://www.boards.ie/discussion/comment/122415491#Comment_122415491

Buzz Air tried that a while ago and lasted about 6 months.

Ryanair bought them over since.

EchoIndia

https://www.boards.ie/discussion/comment/122415563#Comment_122415563

That was twenty years ago, when European LCCs were not yet major players as they are now. The "Buzz" branding is now used by Ryanair's Polish arm.

https://en.wikipedia.org/wiki/Buzz_%28airline_founded_in_1999%29

Cookiemunster

https://www.boards.ie/discussion/comment/122415487#Comment_122415487

I remember that too. But a ferry burning bunker fuel is far dirtier per passenger kilometer than a plane. And you need to add the emissions from long distance driving at either or both ends to the calculations too.

https://travelandclimate.org/methodology#emission-factors-person

cdeb

https://www.boards.ie/discussion/comment/122414837#Comment_122414837

It is though. It's about 3% of CO2 and because of the interaction at higher altitudes, it makes up about 5% of global warming impact. That's a large source by any means. Especially when you consider 85% of the planet has never been on a plane. That's 5% of global warming coming from 15% of the population.

It's also one of the fastest-rising sources of carbon (along with cloud) at a time when we desperately need to cut back.

Peter Flynt

https://www.boards.ie/discussion/comment/122413668#Comment_122413668

Perhaps they could pay back the money given to them by the state during Covid lockdowns so…..

cdeb

https://www.boards.ie/discussion/comment/122415089#Comment_122415089

Which do you think is more important - your industry getting people they could train (to, incidentally, the detriment of their own economy, which nobody cares about) or the planet's future?

And let's be clear - an awful lot of South American migration is cheap labour. Meat workers, cleaners, delivery drivers, etc.

People's priorities really are messed up at times. When I read posts like yours I realise we as a species have no real desire to change what's happening. There's far too much privilege there to change.

cdeb

https://www.boards.ie/discussion/comment/122415911#Comment_122415911

That's really a data dump with no clear indication as to what you're pointing to.

Here's a UK government source showing carbon emissions per passenger km by type of transport. Plane >> ferry unfortunately.

ProfessorPlum

Very few domestic flights within Ireland. In the 'ferry to Holyhead' example, you'll need to add the car (diesel or petrol) to the ferry, and compare to the medium haul flight for the majority of passengers (no one in their right mind will be terminating their journey in Holyhead). Flying comes out greener.

Geuze

https://www.boards.ie/discussion/comment/122416360#Comment_122416360

Ryanair itself got no State aid during COVID.

The staff did, using the normal TWSS / PUP schemes available to most firms.

Ryanair went to court over State aid payments to other airlines during COVID.

Peter Flynt

https://www.boards.ie/discussion/comment/122416965#Comment_122416965

Not true. Ryanair did receive state aid. By the way paying their staff was also state aid.

Geuze

I may be wrong.

Please describe the State aid provided to Ryanair.

Who paid it? The Irish State?

Furze99

https://www.boards.ie/discussion/comment/122416854#Comment_122416854

We didn't drive at the Holyhead side - it was the train to London or wherever.

The J Stands for Jay

https://www.boards.ie/discussion/comment/122413857#Comment_122413857

It'll probably go up because Mick will negotiate another low cost deal for aircraft

Furze99

I'm not convinced that lifting a large lump of metal into the air and propelling it across is exactly energy conscious or efficient. We must also take into account that train/ ferry / bus travel is more inconvenient and therefore it's not so likely to be done at a whim. The sort at present who get an email from xyz airline offering €20 flights this weekend to abc and who jumps at the opportunity - sure wouldn't it be great to have a couple of days in Barcelona or Berlin.

cdeb

https://www.boards.ie/discussion/comment/122416854#Comment_122416854

"Flying comes out greener"? No it doesn't.

Dublin to London isn't medium haul - Ireland is too small for the chart's generalisation to work. The EU defines medium haul as 800 to 2,000 miles. In any event, the chart doesn't take into account the additional global warming factor from carbon released at high altitude, so you could add 50% to those figures to get the true factor.

If you've got more than one person in the car, the carbon per person reduces, as the chart notes ("Gasoline car, one passenger"). And as Furze says, there's a train at Holyhead which is even better still, and which was commonly taken back in the day for trips to London.

The lack of knowledge on this, and the excuses offered for it, is actually really worrying.

ProfessorPlum

https://www.boards.ie/discussion/comment/122417943#Comment_122417943

So the chart you used to refute another poster's info isn't applicable then?

It's from the UK - also a smallish island, and defines 'medium haul' as between 2 european countries, and 'short haul' as domestic.

That's the thing about statistics and such - you can't just pick and mix. That's not how science works.

(It also says "gasoline car, two passengers", just FYI)

tom1ie

https://www.boards.ie/discussion/comment/122417943#Comment_122417943

where would you suggest we go on holiday, oh wise one?

Charles Babbage

https://www.boards.ie/discussion/comment/122417943#Comment_122417943

the whole thing is dodgy, why on earth would a UK body refer to a "gasoline" car?

IngazZagni

https://www.boards.ie/discussion/comment/122417097#Comment_122417097

This is false information. Ryanair recieved no state aid from the Irish Government. You may be confising youself with a UK Government backed loan that was available to all UK businesses (Ryanair has a UK subsidiary) that they availed of and this has been paid back already.

Aer Lingus did recieve an Irish Government loan. Key word loan. This has also been paid back.

DoctorEdgeWild

No matter what Ryanair do, there will always be a large amount of people who want to run them down at all costs. Some of these are for legitimate reasons, some of just because they don't like a successful businessman being successful. Others seem to believe they are forced to use their services, which is even stranger still!

Definitely not an indicator of the end of days for Airlines, a bump in the road for one of the most successful companies ever in their industry, and one who has opened up low cost travel for me many times a year, which I would never be able to afford without them.

faceman

https://www.boards.ie/discussion/comment/122414644#Comment_122414644

Air travel is here to stay, and is a necessity for many. Trying to shut it down is pointless. Instead, what the greens need to do is push for making it more carbon neutral and push manufacturers to develop more and more fuel efficient engines.

Politicians have a real short sighted view of reality. That's why consumers pay for plastic bottles with zero emphasis on the manufacturers to develop more sustainable packaging (which already exists). If we let politicians run amok they will just push the cost on the consumer with no focus upstream.

Some of your suggestions are pretty deplorable - "stigmatising people talking of moving abroad". Ireland is a shithole for many young people. I know first hand of many people who moved abroad for a better life, and achieved it.

cdeb

https://www.boards.ie/discussion/comment/122420360#Comment_122420360

Here's the thing though - making air travel "more carbon neutral" sounds lovely, but how? You offer no solution (there's a surprise). And the reality is it's not possible. Air travel is incredibly energy intensive, and battery powered commercial air travel is pie in the sky because of the weight of batteries it would involve. It's one of the fastest growing sources of carbon, and at an altitude that makes it even more dangerous. Yet people want to fob this off with absolute daft stuff like "Ireland is a shithole for many young people" - honest to God like. Ireland will be an even bigger shithole if we keep spewing out carbon the way we are - by, for example, people deciding to move to Australia and generating tonnes and tonnes of carbon annually. Way way more from one journey than a person should generate in a year.