Ryanair chief Michael O’Leary today delivered another sideswipe against European air traffic control management as the airline reported a record summer with higher fares.
The latest attack came as Europe’s largest no-frills carrier reported a 59% year-on-year rise in first half profits after tax to €2.18 billion as passenger numbers rose by 11% to 105 million in the six months to September 30.
Delivering the results, group chief executive O’Leary said: “The urgent reform of Europe’s inefficient ATC [air traffic control] system is one of the most significant environmental initiatives the EU can deliver.
“In 2023, French ATC has so far inflicted over 60 days of strikes on our sector, during which the French government use[s] minimum service laws to protect local/domestic flights while disproportionately cancelling overflights.
“In September we delivered a petition signed by 1.5 million customers calling on the EC to protect the single market for air travel by protecting overflights – while respecting ATC unions right to strike – as is already the case in Greece, Italy and Spain.
“Sadly, we have yet to see any action from (EU) president Ursula von der Leyen on this key environmental initiative.”
O’Leary insisted: “Ryanair’s investment in resilience ahead of our summer ’23 schedule – increased crew ratios, doubling the capacity of our Dublin and Warsaw ops centres, enhanced day-of-travel app and continuously improving live customer comms – ensured that our passengers and crews could enjoy Ryanair’s industry leading on time performance and reliability, despite significant ATC disruptions this year.”
The airline expects annual profits to reach between €1.85 billion and €2.05 billion, assuming “modest losses” over the winter.
The annual profits guidance came despite uncertainty over Boeing aircraft deliveries, a “significantly higher” full year fuel bill – up €1.3 billion on last year, very limited visibility for the final quarter of the financial year and the risk of weaker consumer spending over the coming months.
“This guidance remains highly dependent on the absence of any unforeseen adverse events, for example such as Ukraine or Gaza, between now and the end of March 2024,” O’Leary added.
The carrier is targeting a 9% increase in passenger numbers this financial year to 185.5 million.
But the final figure depends on Boeing meeting delivery commitments between now and the end of the year.
Forward bookings are robust over the late October mid-terms and into the peak Christmas travel period, with average fares expected to be ahead of this time last year by a “mid-teens” percentage, according to O’Learry.
However, he added: “Unhedged fuel costs, however, are significantly higher making it unlikely that we’ll replicate last year’s bumper Q3 performance.
“As is normal at this time of year, we have very limited Q4 visibility. Q4 is traditionally our weakest quarter and, this year, will be impacted by the partial unwind of free [EU] Emissions Trading Scheme carbon credits from January 2024.
O’Leary explained that Ryanair’s recent order for 300 Boeing Max-10 aircraft, providing 21% more seats while burning 20% less fuel, enabled the company to reset its environmental targets.
The aim now is to strive to “grow traffic more sustainably” to reach 300 million passengers a year by 2034.
“We expect to create over 10,000 new, well-paid, jobs for highly trained aviation professionals as the group expands our fleet to 800 aircraft by full year ’34,” O’Leary said.
“Building on the success of our aviation training facilities in Dublin, Stansted, Bergamo and East Midlands, we’re opening two new excellence centres in Krakow and Madrid to accelerate local crew training and development in those major markets.
“Our recently announced engineering academy will support 1,000 apprentices annually as we train the next generation of highly skilled mechanics and engineers.
“Ryanair Labs is also growing at its development hubs in Dublin, Madrid, Portugal and Wroclaw to support Ryanair’s customer service, our efficiency and scalability over the coming decade.”