Ryanair has reported a significant profit surge, revealing a 42% increase in half-year profits, attributed to rising fares. The airline’s CEO, Michael O’Leary, criticized the UK Chancellor, Rachel Reeves, arguing that her policies hinder economic growth. He specifically targeted a planned increase in air passenger duty scheduled for April, suggesting it could negatively impact the airline and private sector investment.
Key Financial Highlights
- Ryanair’s profit after tax for the six months to September reached €2.54 billion (£2.2 billion).
- Passenger numbers hit a record high of 119 million during this period.
- Revenue per passenger increased by 9%, bolstered by a 13% rise in fares.
Market Response
O’Leary expressed that economic challenges could benefit Ryanair, as more price-sensitive travelers might choose budget airlines. He emphasized the importance of reducing taxes to foster growth, stating that failure to do so could lead to prolonged economic difficulties for the UK.
Future Projections
The airline has adjusted its passenger traffic forecast for the fiscal year. Ryanair anticipates carrying 207 million passengers, a slight increase from a previous forecast of 206 million. This optimism is supported by earlier-than-expected deliveries of new Boeing aircraft and robust demand in the first half of the year.
Booking Trends
Looking ahead, O’Leary noted that forward bookings for the third quarter are encouraging, especially during key travel periods such as the mid-term break and Christmas. However, he cautioned that the second half of the fiscal year may present more challenges regarding fare growth due to previous year’s comparisons.
As Ryanair continues to grow amidst economic uncertainties, the airline’s focus on competitive pricing and efficiency remains a critical aspect of its strategy.
