Operating costs rise and adjusted after-tax profit falls in Q3

  • Ryanair narrows annual guidance after higher operating costs impact profit
  • Operating costs in Q3 rose, leading to a fall in adjusted after-tax profit
  • Fuel bill rose over 35% to 1.2 billion euros
  • Adjusted after-tax profit for the quarter was EUR15 million compared to EUR211 million the previous year
  • Revenue per passenger rose 9%, with ancillary revenue up 2%
  • Ryanair carried 41.4 million passengers in the quarter
  • Company narrows profit after tax guidance for the year to between EUR1.85 billion and EUR1.95 billion

Ryanair Holdings has announced that its operating costs in the third quarter rose, leading to a fall in adjusted after-tax profit. The Irish budget airline reported that its fuel bill increased by over 35% to 1.2 billion euros. Additionally, higher staff costs, including pay restoration and pay increases, contributed to the decline in profit. Ryanair’s adjusted after-tax profit for the quarter was EUR15 million, compared to EUR211 million in the same period the previous year. Despite these challenges, the company saw a 9% increase in revenue per passenger, with ancillary revenue up 2%. Ryanair carried 41.4 million passengers in the quarter. The company has narrowed its profit after tax guidance for the year to between EUR1.85 billion and EUR1.95 billion.

Public Companies: Ryanair Holdings (RYAAY)
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Factuality Level: 7
Justification: The article provides specific information about Ryanair’s operating costs, fuel bill, staff costs, adjusted after-tax profit, revenue, passenger numbers, load factor, and profit guidance. The information is presented in a factual manner without any obvious bias or opinion. However, the article does not provide any sources or additional context to verify the information, which lowers the factuality level slightly.

Noise Level: 6
Justification: The article provides information on Ryanair’s operating costs, profit, and revenue for the third quarter. It mentions factors that contributed to the fall in profit, such as increased fuel costs and higher staff costs. It also mentions the effect of some online travel agencies not offering the airline’s flights in December. The article includes some financial data and metrics, but it lacks in-depth analysis or insights into long-term trends or antifragility. It does not hold powerful people accountable or explore the consequences of decisions on those who bear the risks. Overall, the article provides some relevant information but lacks depth and actionable insights.

Financial Relevance: Yes
Financial Markets Impacted: Ryanair Holdings

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article pertains to financial topics as it discusses Ryanair’s operating costs, profit, revenue, and guidance. However, there is no mention of an extreme event.

Reported publicly: www.marketwatch.com