Ryanair earns 663 million in its first fiscal quarter, up 290%

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Irish low-cost airline Ryanair posted a net profit of €663 million in the first quarter of its fiscal year (April-June), up 290% from the same period in 2022.

The Dublin-based company attributed the profit rebound to the “sharp” increase in activity during Easter and the coronation festivities of King Charles III in the United Kingdom last May.

Ryanair also highlighted that it has overcome the drop in passenger traffic and ticket sales recorded by the sector following the Russian invasion of Ukraine in February 2022, which reduced its profit in the first quarter of that year to €170 million.

The airline said Monday that it carried 50.4 million passengers between April and June, up 11%, while the occupancy factor, which measures the percentage of seats occupied on each flight, rose three points to 95%.

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Ryanair also raised its revenues to 3.65 billion euros, up 40%, in the first quarter of this fiscal year, which will end on March 31.

In this regard, revenue per passenger increased by 27% in the period, after the average fare increased by 42% to 49 euros, and ancillary revenues, which include priority boarding or onboard consumption, among others, grew by 4%.

On the other hand, it indicated that its operating costs rose by 23% to 2.94 billion euros, mainly due to the price of fuel and the increase in personnel costs and traffic control operation fees.

However, Ryanair indicated that it has covered its fuel needs after pre-purchasing 85% for this year at a price of US$89 per barrel.

Its CEO, Michael O’Leary, added in Monday’s statement that it expects to achieve passenger traffic of approximately 183.5 million passengers by next March, up 9%, although previous estimates put it at 185 million.

The executive warned that the airline could fall below these expectations due to delays in the delivery of aircraft from U.S. manufacturer Boeing in “the spring and fall of 2023”.

O’Leary assured that this factor, together with the “volatility” of fuel prices and the “risk of a drop in consumption this winter”, prevents the company from making economic forecasts for the second half of the fiscal year.

However, he said Ryanair is “cautiously optimistic” about a “modest” increase in its net profit over last fiscal year, when it earned 1.428 billion euros.