Ryanair reported a third quarter profit of €88m, compared to a €66m loss in the same quarter last year, which the carrier attributed to stronger passenger demand over the Christmas and New Year period, with passenger numbers up by 6%.
Sales grew 21% to €1.91bn with better than expected Christmas and New Year bookings, at higher fares, driving a 16% increase in scheduled revenue to €1.19bn as Ryanair carried 36m passengers paying fares which were 9% higher than the comparable figures 12 months earlier.
An increased use of priority boarding and preferred seat services saw ancillary revenue by 28%, higher fares. Ancillary Revenue increased by 28% to €0.72bn which the firms attributed to the launch of its upgraded digital platform Ryanair Labs.
The rise in profit compared with the same period 12 months earlier came despite a 14% increase in fuel bill of €83m to €0.7bn, which the firm attributed to due to higher prices and its traffic growth. While non-fuel costs increased by 1% due to higher pilot salaries and greater maintenance costs through the need to keep older airplanes flying due to the Boeing Max delivery delays.
Ryanair was due to take delivery of its first Boeing 737-MAX-200 aircraft in Q2 2019 and it said it did not expect to receive its first airplane until September or October this year with the requirement for MAX simulator training to further slowdown the delivery of aircraft.
However, in statement Ryanair said that when the Max finally arrived it would be a “gamechanger” aircraft due to its 4% more seats and 16% better fuel efficacy than its current fleet. “When [the MAX] is delivered it will transform our cost base and our business for the next decade,” the firm sad in results reports, however it now doesn’t expect to receive these cost savings until 2021 at the earliest.