European Airline Ryanair's Q3 Profit Slumps As Higher Fuel Costs Offset Revenue Gains; Reportedly Eyes New Boeing Jet Purchase Strategy
Portfolio Pulse from Akanksha Bakshi
Ryanair Holdings PLC (NASDAQ:RYAAY) reported a Q3 fiscal 2024 net profit of €15 million, down from €211 million a year ago, due to higher fuel costs. Revenue grew by 17% Y/Y to €2.70 billion, with a slight decrease in load factor to 92%. Operating costs rose 26% Y/Y, primarily due to a 35% increase in fuel costs. The company announced an interim dividend of €0.175 per share. Ryanair's FY24 outlook expects traffic to grow by 9% Y/Y, with narrowed PAT guidance. Ryanair is also considering purchasing Boeing 737 MAX 10 jets rejected by U.S. customers. RYAAY shares saw a slight premarket increase of 0.34%.
January 29, 2024 | 1:42 pm
News sentiment analysis
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NEUTRAL IMPACT
Ryanair's Q3 profit significantly decreased due to higher fuel costs, despite revenue growth. The company announced an interim dividend and expects traffic growth in FY24.
While Ryanair's profit has decreased, the revenue growth and positive traffic outlook for FY24, along with the dividend announcement, could balance investor sentiment. The slight premarket stock increase indicates a neutral to mildly positive short-term impact.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100
POSITIVE IMPACT
Ryanair is considering purchasing Boeing 737 MAX 10 jets rejected by U.S. customers, signaling potential new deals for Boeing.
Ryanair's interest in purchasing additional Boeing 737 MAX 10 jets could indicate potential new sales for Boeing, which may positively impact its stock in the short term. The news shows continued confidence in Boeing's products despite past issues.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70