Ryanair posts record profit for key summer season
Ryanair on Monday posted its largest ever profit for its key summer season and said it expected very strong passenger and fare growth for years to come.
But it also warned Europe’s recovery remained susceptible to shocks from COVID-19 and Russia’s invasion of Ukraine, and said aircraft delivery delays from Boeing could hit its capacity next summer, Reuters reported.
→ Ryanair says inflation can be beneficial for the airline.
The Irish airline, Europe’s largest by passenger numbers, earned 1.371 billion euros ($1.36 billion) in the six months to the end of September, the first half of its financial year.
While that was just short of a forecast of 1.385 billion in a company poll of analysts, it was well ahead of its previous first-half record of 1.29 billion euros in 2017.
“Concerns about the impact of recession and rising consumer price inflation on Ryanair’s business model have been greatly exaggerated,” Chief Executive Michael O’Leary said.
“We expect these strong fundamentals will continue to underpin robust traffic and average fare growth for the next 18-months at least. Profits and traffic are poised for “very strong growth” through 2025, assuming oil prices remain relatively stable, O’Leary added in a video presentation.
→ Ryanair announces new winter route between Cardiff and Faro.
O’Leary said the July-September quarter had delivered growth on a scale he had never seen, with 15% traffic growth combined with a fare rise of 14% thanks to the combination of pent-up demand and the post-COVID retrenchment of rivals.
Chief Financial Officer Neil Sorahan said Ryanair expects “significant consolidation and the bankruptcy of some airlines” in the next three to four years.
O’Leary indicated that Ryanair could be left as the only major low-cost airline in Europe.
Ryanair plans to grow from a record 168 million passengers this financial year to 185 million next.
However, while the airline anticipates delivering 51 737 MAX aircraft by next summer, O’Leary said he was concerned that Boeing would come up short.
“I think it’s more likely that Boeing will leave us short and we’ll end up with an additional 40 to 45 aircraft by next summer,” O’Leary added.
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