Ryanair Holdings plc has hit a significant milestone, reporting a remarkable 34% increase in profit after tax (PAT) for the fiscal year ending March 2024. This brings the total PAT to €1.92 billion, showcasing the airline's resilience and growth in a post-pandemic world. Here's a closer look at what drove these impressive results and the key highlights from their latest financial report.
By Aditya M
Strong Performance Amidst Rising Costs
Ryanair's financial success is particularly noteworthy given the substantial rise in fuel costs. Hedged oil prices surged from $65 per barrel in FY23 to $89 per barrel in FY24. Despite this, the airline's industry-leading cost base and increased revenues helped counterbalance the higher fuel bill.
Key Financial Metrics:
| Metric | Mar. 2023 | Mar. 2024 | Change |
|---|---|---|---|
| Customers | 168.6m | 183.7m | +9% |
| Load Factor | 93% | 94% | +1pt |
| Revenue | €10.78bn | €13.44bn | +25% |
| Operating Costs | €9.20bn* | €11.38bn | +24% |
| PAT | €1.43bn* | €1.92bn | +34% |
Highlights from FY24
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Traffic Growth: Ryanair welcomed 183.7 million passengers, marking a 9% increase from the previous year and a substantial 23% growth compared to pre-COVID levels. This growth came despite delays in aircraft deliveries from Boeing.
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Revenue Per Passenger: The revenue per passenger rose by 15%, with the average fare increasing by 21% and ancillary revenue up by 3%.
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Fuel Costs: The airline's fuel bill increased by 32%, totaling €5.14 billion, a significant rise driven by higher oil prices.
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Sustainability and Customer Satisfaction: Ryanair’s ESG ratings saw an upgrade, with MSCI rating it 'A' and CDP rating it 'A-'. Additionally, the airline achieved a strong customer satisfaction score of 85%.
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Fleet and Route Expansion: Despite Boeing delays, Ryanair added 146 Boeing 737 “Gamechangers” to its fleet, now totalling 584 aircraft. The airline also launched five new bases and over 200 new routes for the summer of 2024.
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Fuel Hedging: Looking ahead, Ryanair has hedged over 70% of its FY25 fuel needs at just under $80 per barrel, which is expected to save €450 million.
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Dividends: Shareholders enjoyed a maiden interim dividend of €0.175 in February, with a final dividend of €0.178 set to be paid in September.
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Future Growth Plans: Ryanair's ambitious plans include a 300 Boeing 737-MAX-10 order, which underpins its growth strategy to reach 300 million passengers by FY34, contingent on timely deliveries from Boeing.
Concluding Thoughts
Ryanair's latest financial report underscores its robust performance and strategic growth in a challenging economic environment. With continued expansion, strong customer satisfaction, and effective cost management, Ryanair is well-positioned to maintain its trajectory as one of the leading airlines in the industry.
As we look forward to what FY25 holds, it's clear that Ryanair's focus on operational efficiency and customer experience will continue to drive its success. Whether you're a frequent flyer or an investor, these results are a promising sign of the airline's upward journey.
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