Ryanair sees profits fall by 18% due to delays to new Boeing aircrafts after safety scandals
PROFITS at Ryanair have fallen by almost a fifth as the airline counted the cost of delays to new aircraft.
The budget flyer said they were down by 18 per cent in the first six months of the year to £1.5billion, despite it carrying a record 115million customers.
Ryanair said it could have flown an extra five million passengers had it received the new planes it is waiting for from Boeing.
Boss Michael O’Leary described the plane delays as a “pain in the backside”.
He is demanding more compensation from the US aircraft maker, claiming the current terms don’t reflect the number of passengers Ryanair could have flown this year and next.
Chief financial officer Neil Sorahan said: “The biggest issue for us at the moment is trying to get aircraft.”
He added that Ryanair had been due to receive 11 by the end of this year but so far had received just two.
He told CNBC: “I don’t think we’ll see any more this side of Christmas.”
Ryanair exclusively uses planes made by Boeing, which has been hit by a safety scandal ever since a door peg blew off an Alaska Airlines 737 Max mid-flight in January.
The grounding of aircraft and extra inspections have been made worse by seven weeks of industrial action at Boeing, called the “costliest strike of the 21st century”.
Factory workers voted last night on a 38 per cent wage increase over four years that could restart jet production.
Ryanair said that its profits were hit by having to discount fares by an average of ten per cent to stimulate sales after it blocked ticket site Booking.com and other ticket agencies from selling its flights.
Last week Mr O’Leary warned that UK passengers could see a reduction in flight routes after the Chancellor increased air passenger duty in last week’s Budget.
The outspoken boss accused Rachel Reeves of an “idiotic” and “anti-growth Budget that will damage UK tourism, jobs and economic growth”.
ANGLO’S OZ SELL
MINING giant Anglo American has struck a £830million deal to sell its 33.3 per cent stake in an Australian coal joint venture.
The move to sell its interest in Jellinbah Group is part of a defence strategy to boost its financial performance — after fending off a £39billion takeover proposal by rival BHP earlier this year.
It is now focusing on boosting its exposure to copper which is in huge demand because it is critical in wind turbines, solar panels and electrical vehicles.
THAMES APPEAL
THAMES WATER’S lenders are urging more firms to help foot the bill for a £1.5billion rescue financing designed to give the struggling company a temporary lifeline.
Their plea comes after a rival group of bondholders offered an alternative financing at a cheaper rate of interest and the row threatens its survival hopes.
The investment giants include Blackrock, Elliott, Abrdn and M&G.
A November 11 deadline is set for 75 per cent of creditors to approve the financing and avoid temporary nationalisation.
PRICES UP IN REEVES TAX RAIDS
SHOPPERS face higher prices as retailers pass on a £5billion burden from the Budget, the British Retail Consortium says.
Retail is the biggest private sector employer and is particularly hard hit by Chancellor Rachel Reeves’ £25.7billion tax hike on firms’ National Insurance Contributions.
Consortium chief Helen Dickinson said the Budget “will hold back investment and growth in the short term while further squeezing already-low margins and risking inflation”.
Retailers suffered a “disappointing” October after pre-Budget uncertainty and rising energy bills “spooked” consumers.
Total UK retail sales were up 0.6 per cent year-on-year last month against a 2.6 per cent increase last October, the BRC-KPMG Retail Sales Monitor found.
Barclays said there was a 2.2 per cent drop in essential spending, the biggest slide since the first Covid lockdown.
MPs QUIZ FOR SHEIN
FAST-fashion giant Shein’s chairman is to be grilled by MPs amid concerns about the treatment of workers in its Chinese supply chain.
Liam Byrne, who chairs the Business and Trade committee, said he will invite Donald Tang to give evidence in an inquiry.
It will scrutinise how to protect against poor labour standards overseas, including concerns over forced labour.
Shein is still preparing a £50billion London stock exchange listing next year.
MONCLER EYES BURB
BURBERRY was back in fashion with investors yesterday amid speculation that Moncler, the maker of £1,300 puffer jackets, could consider a takeover.
Burberry’s shares rose as much as 7 per cent — having lost 40 per cent of their value this year on the back of profit warnings, trading woes and a boardroom upheaval.
The firm, which has used stars including model Cara Delevingne and actress Olivia Colman in promotional campaigns, has a £3billion price tag.
Moncler said last night that it did “not comment on substantiated rumours”.