Irish budget airline Ryanair on Monday reported a fall in second-quarter net profit and revised down its passenger growth target following delays in deliveries of Boeing planes.

Chief executive Michael O’Leary warned Ryanair’s full-year results “will be subject to the prevention of adverse developments”, noting risks from conflicts in Ukraine and the Middle East, staffing issues from air traffic control and further delays in Boeing deliveries.

The company announced second-quarter after-tax profits of 1.4 billion euros ($1.6 billion), down six percent from the same period last year.

Its net profit fell 18 percent to 1.8 billion euros in the first six months of the financial year.

The company said strong growth in passenger traffic in the first half of the year was “offset by lower airfares”, which fell seven percent in the second quarter.

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The low-cost airline attributed falling prices in part to “high interest rates over long periods of time” that reduced its customers’ disposable income.

Delays in Boeing deliveries weighed on Ryanair’s results and traffic last year.

The Dublin-based airline has lowered its passenger growth target for the 2026 financial year to 210 million passengers, from 215 million previously.

“While we continue to work with Boeing leadership to accelerate aircraft deliveries, the risk of further delivery delays remains high,” O’Leary said.

It cited the “significant impact” of the five-million-passenger deficit on its full-year results.

ButWeScores of employees at US aerospace giant Boeing have been on strike for more than seven weeks in a fight focused on higher wages and improved retirement benefits.

The US aircraft manufacturer also faced technical safety-related issues, which led to delays in the delivery of its aircraft.

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“Boeing’s difficulties are reflected in Ryanair’s difficulties,” said Susannah Streeter, Boeing’s president. money and the markets at Hargreaves Lansdown.

He added that if Boeing cannot fulfill the order, passenger increase figures may be revised even lower.

Source: AFP