“Ryanair announces profit jump and predicts cheaper-than-expected summer fares…”

Yearly earnings for the budget airline are at a record level despite rises in fuel prices, higher staffing costs and delivery delays.

Ryanair has revealed an after-tax profit of €1.92 billion in the year to March, an annual jump of 34%.

The total surpasses the previous annual record of €1.45 billion, made in the year to March 2018, and sits ahead of the €1.905 billion predicted by company analysts.

Ryanair’s bottom line was boosted by a 9% increase in passenger traffic, combined with a 21% rise in the average fare price.

Despite this jump in consumer costs, the airline said it is continuing to reap a “competitive advantage” by keeping fees lower than its EU competitors.

Two weeks ago, CEO Michael O’Leary announced that summer fares would be likely to be lower than the 5%-10% rise predicted in late April.

While pricing could change, he said, peak tariffs were set to be “flat to modestly ahead” of those seen last summer.

“It is a bit surprising that pricing hasn’t been stronger and we’re not quite sure whether that’s just consumer sentiment or recessionary feel around Europe but we still see peak travel demand certainly through July and August being strong,” O’Leary said in a presentation to investors.

“And if we have to discount or cut fares to fill to 94% load factor in April, May and June then so be it,” he added.

Although Ryanair reported strong earnings, the year was not without its challenges.

The airline saw higher staff expenses and noted a 32% increase in fuel costs, to €5.14 billion.

Delivery delays also ate into profits, notably linked to the Boeing manufacturing crisis.

Ryanair said it would be short of 23 Boeing 737s that were due to be delivered by the end of July.

“We continue to work closely with Boeing CEO (Dave Calhoun), CFO (Brian West) and the new Seattle management team to improve quality and accelerate B737 aircraft deliveries,” Ryanair announced in an earnings statement.

“There remains a risk that Boeing deliveries could slip further,” the airline added.

Contingent on these deliveries, Ryanair expects to increase its traffic by 8% in the coming year, targeting between 198 and 200 million passengers.

The firm said that it is too early to provide a profit expectation for the period, warning that conflicts in Ukraine and the Middle East could negatively affect the total.

Malta:

Malta Properties Company plc

At the annual general meeting held on the 22^nd May 2024 it was reported that Malta Properties Company plc achieved strong growth in 2023. They also reported a 19% increase in revenues and a 26% rise in operating profits.

Key achievements include the completion of their new Zejtun property and the first phase of renovations at The Exchange in Spencer Hill. This performance enables them to increase their dividends to 1.4 euro cents per share, payable on the 23rd of May 2024.

They also announced that they expect the positive trends to continue in 2024. Despite challenges in the office space sector, they remain committed to attracting new tenants and delivering exceptional customer service.

Malta Company Announcements:

Bank of Valletta p.l.c

The Board of Directors is recommending a final net dividend of €0.0455 per share to all shareholders as at close of trading on 26 April 2024 subject to regulatory approval and approval by the Annual General Meeting scheduled for 31 May 2024.

Trident Estates p.l.c

On 29 April 2024, Trident Estates plc announced that its Board of Directors is scheduled to meet on Thursday 30 May 2024 to consider and approve the financial results for the year ended 31 January 2024. The Directors will also consider the declaration of a dividend.

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