Ryanair shares tumble on news of online travel agents removing flights

Analysts believe Ryanair will hit profit targets despite the decision by a number of online travel agents to stop selling the airline’s flights.

Agents including Booking.com, Kiwi and Kayak stopped selling Ryanair flights in early December but the airline said on Wednesday that it did not expect the move to materially affect full-year profit or passenger numbers.

However, its shares tumbled almost 5 per cent on the news, ending the day at €18.19 in Dublin.

Stephen Furlong, analyst at Dublin stockbroker Davy, said the firm was unlikely to change its forecast that the Irish carrier’s profits would hit €2 billion in its current financial year, which ends on March 31st.

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Ryanair has told investors and the stock market that it expects full-year profit to land somewhere between €1.85 billion and €2.05 billion, while it would fly 185 million passengers.

Mr Furlong said that Ryanair indicated that the move would take “some of the shine” off the average fares it predicted when it reported half-year results in November, but added that it should not make a material difference.

“Our own view is that the supply-demand dynamic in the industry remains robust, demand remains very strong and supply is very constrained,” he noted.

Dudley Shanley, analyst with stockbrokers Goodbody, said the agents’ move was a “welcome development” in the longer term.

Ryanair’s statement came as the airline reported that it flew more than 12.5 million passengers in December, up 9 per cent from December 2022, despite more than 900 flights being cancelled due to the war in Gaza. The carrier sold 91 per cent of the seats on its aircraft, down 1 per cent on December 2022.

The airline said it would respond to the travel agents’ move by lowering fares “where necessary” to encourage passengers to book directly with its website.

[ Ryanair losses drag on Irish index as global markets continue new year’s slump ]

Ryanair welcomed the move but cautioned that it could increase the proportion of empty seats on aircraft by 1 or 2 per cent in December and January.

It has been fighting continuing legal battles with online agents across several jurisdictions, accusing them of adding fees to its fares.

The group suggested agents had reacted to pressure from consumer protection agencies, its new customer verification measures and a recent Irish High Court ruling blocking the use of certain technology to scrape its website.

The airline said “honest/transparent” agents, such as Google Flights, “who do not add hidden markups”, continued to sell Ryanair flights.

Booking Holdings, which operates Booking.com and Kayak, and Kiwi.com did not respond to requests for comment.

– Additional reporting: Reuters