Following a successful 2023 and promising start to 2024, the Ryanair Group reported record earnings of €1.92 billion ($2.09 billion). The group's profit levels increased by 34% during the year, with subsidiaries Buzz, Lauda, and Malta Air included.
A portion of this was ascribed to an increase in passengers, with Ryanair's traffic growing by 9% to 183.7 million travellers. Auxiliary sales increased by 12% to an average of €23.40 per passenger, while prices jumped by 21% to an average of a little under €5. This resulted in a rise in value per passenger as well.
With 200 new routes and five new bases, this is the group's largest summer programme ever. Michael O'Leary, the Group CEO, pointed out that recent pricing has been less aggressive than anticipated and that higher price stimulation was needed to increase bookings in Q1.
The group's operating expenses were one area in which it fell short of expectations. Fuel prices skyrocketed after Russia invaded Ukraine, and the airline suffered greatly from the unhedged component. Its annual gasoline expenditure increased by 32% to over €5 billion.
More than 70% of its fuel needs for the current fiscal year are hedged at less than $80 billion, which will save the company about €450 million ($488 million).
One of Ryanair's "cost advantage" strategies is fuel hedging, but there are others. The group's ownership of all 556 of its Boeing 737 aircraft is significant.
This has successfully protected them from the increasing cost of leasing aircraft, especially in light of the narrowbody fleet limitations brought on by Boeing's reduced production levels and Pratt & Whitney engine groundings.
