Ryanair’s top-end profit estimates have been lowered this year, after online travel agencies removed flights operated by the Irish airline abruptly from their sites.
The airline has been removing the travel agencies from its website for a while now. This is part of an ongoing spat with online travel agents such as Kiwi, Lastminute, and Opodo. Ryanair calls them “pirates” due to alleged “scamming”, whereby they charge customers higher fees.
Ryanair was taken aback by the removal in December of flights from the websites of travel agents, despite the feud. The load factor (the proportion of seats on each plane) dropped by one percentage point. Ryanair dropped prices in an attempt to fill the seats.
The airline announced on Monday that it will narrow its profit guidance after taxes for the entire year, to a range between €1.85bn and €1.95bn. Previously, it had said profit could be as high as €2.05bn.
Fuel costs increased by 35%, which also had an impact on the profits.
Ryanair’s total passenger numbers grew 7% in 2023, to 41.4 millions, despite a drop in profits. Ryanair has seen its passenger numbers increase almost continuously, making it not only one of the most valuable airlines in the world but also the most polluting airline in Europe.
Ryanair said that it’s profit guidance is “heavily dependent” on avoiding any adverse events in the last quarter of the financial year. These include new instability caused by the Russian war against Ukraine or Israel-Hamas conflict.
The report also warned of the possibility of further delays to Boeing’s deliveries of new aircraft. Ryanair has signed a contract for new Boeing 737 Max planes in December 2020. It received a substantial discount as it was backing the US manufacturer during a period of intense scrutiny following two fatal crashes due to design flaws.
Ryanair has taken delivery of more than a dozen new jets. However, further deliveries may be delayed because regulators have blocked accelerated production due to a non fatal accident that occurred earlier this month. Alaska Airlines lost a door-plug in mid-flight, due to faulty fittings on the new plane.