Ryanair swings back to profit as summer bookings and fares soar
Ryanair posts £1.2bn profit as summer bookings and ticket prices soar, with airlines urging customers to book early to avoid further fare hikes
- Ryanair posted a full year pre-tax profit of £1.2bn compared to a net loss of £309m
- Passenger numbers increased by 74% and average fares by 50% to £36 per person
- Additional income, or perks, rose by 79% to average around £20 per person
Ryanair has posted another near-record profit and the airline expects revenues to rise further this year, thanks to higher ticket prices and rising summer bookings.
The budget airline reported a pre-tax profit of €1.4 billion (£1.2 billion) for the year to the end of March, compared to a net loss of €355 million (£309 million) in the previous 12 months and a record profit of € 1.45 billion in 2018.
Total revenues rose 124 per cent to €10.8bn (£9.4bn), reflecting a recovery in travel following the Covid-19 restrictions in place last year.
Ryanair saw a 74 per cent year-on-year increase in passenger numbers, a 50 per cent increase in average fares and an almost 80 per cent increase in ancillary revenues such as baggage fees and in-flight food.
Rising ticket prices: Ryanair said peak fares for summer 2023 are trending from last year
The group carried nearly 169 million passengers last year and expects to fly an even more 186 million passengers this year, thanks to its largest-ever summer schedule of 3,000 daily flights.
Average ticket prices rose 50 per cent to €41 (£36) and were 10 per cent higher than before the pandemic, with the airline urging customers to book early to avoid further expected increases.
Chief executive, Michael O’Leary, said: ‘To date, demand in Summer 2023 is robust and peak rates for Summer 2023 are higher than last year.
Rates for the first quarter, which benefited from a strong Easter in April (and a very weak comparable year due to the Russian invasion of Ukraine), will be significantly higher than in the first quarter of 2022-23.
Passengers also spent more on extras such as priority boarding and reserved seats, averaging around €23 per person.
Other major airlines have all pointed to strong summer bookings, showing that people are prioritizing travel despite the cost-of-living crisis straining their finances.
Rates for the first quarter, which benefited from a strong Easter in April (and a very weak comparable last year due to the Russian invasion of Ukraine), will be significantly higher than in the first quarter of 2022-23
Last week, easyJet reported an 80 percent increase in revenue, while IAG, owner of British Airways, returned to profit in the first quarter thanks to high holiday demand and lower fuel prices.
Ryanair expects its annual fuel bill to rise by more than €1 billion due to higher oil prices, but said it is “cautiously optimistic” that rising passenger numbers and higher ticket prices will more than offset that.
The company, which this month ordered 300 new Boeing 737 Max-10 aircraft in a deal reportedly worth more than £32bn, expects its larger fleet to be able to carry 300 million passengers a year by March 2034.
O’Leary said: “Despite continued uncertainty over the timing of Boeing deliveries, nearly 15 percent uncapped fuel, limited visibility in the second quarter and zero visibility in the second half of the rate (normal at this time of year ), we are cautiously optimistic that 2023-24 sales will grow enough to cover our EUR 1 billion higher fuel bill and still deliver a modest year-over-year profit increase.
“This guidance remains highly dependent on avoiding adverse events during 2023-24, such as the war in Ukraine or further, repeated delays in Boeing’s delivery.”