Ryanair Shares Dropped 6.3% Despite Upbeat Q1 FY2024 Results

The Ryanair Holdings plc (NASDAQ: RAAY) share price dropped by 6.26% after reporting Q1 profits of €663 million, compared to a similar period last year when its Q1 profit after tax (PAT) of €170 million. The airline’s high earnings were driven by robust Easter bookings and the extra UK holiday for the new King’s coronation.

The company also highlighted the relatively weak comparisons to last year when air travel was negatively affected by Russia’sinvasion of Ukraine, causing many people to cancel or postpone their flights in the early stages of the war. Fast forward to today, and demand for flights is back.

During the airline’s first quarter, traffic rose 11% to 50.4m at a 95% load factor compared to last year when the airline carried 45.5 million passengers. Last year’s load factor was 92%. Hence, the increase this year was a substantial 3 percentage points. 

Ryanair’s revenues surged 40% to €3.65 billion versus the €2.60 billion recorded last year. The company attributed the higher revenues to high fares and more flights from old and new bases. The company reiterated its goal of growing its passenger numbers to 300 million persons annually by 2034. 

The airline launched three new bases and opened 190 new routes fueled by its receipt of 21 new aircraft. The company received a delivery of 21 fuel-efficient B737-8200 “Gamechangers” boasting 4% more seats, 16% less fuel consumption & CO₂ emissions and 40% quieter. 

Ryanair's CEO and Founder, Michael O'Leary, said: “Every customer switching to Ryanair from high-fare EU legacy carriers can reduce their emissions by up to 50% per flight.  We continue to invest heavily in new technology aircraft.  During Q1, we took delivery of  21 fuel-efficient B737-8200 “Gamechangers” (4% more seats, 16% less fuel & CO₂ and 40% quieter).  In May, we signed a deal with Repsol to supply SAF to Ryanair bases in Spain.  This builds on similar SAF arrangements with OMV, Neste & Shell and puts the Group on track to achieve its ambitious 2030 goal of powering 12.5% of Ryanair flights with SAF – with 9.5% already secured.”

*This is not investment advice. 

Ryanair share price. 

The Ryanair share price fell 6.26% to trade at 1365.75p, from Friday’s closing price of 1457.00p.