Irish no-frills airline Ryanair Holdings PLC rebounded into bumper annual net profits, boosted by a “strong” COVID-19 recovery despite spiking costs, it said yesterday.
Profit after taxation soared to 1.4 billion euros (US$1.5 billion) in the 12 months to the end of March, after a net loss of 355 million euros in its previous financial year, Ryanair said in a statement.
The Dublin-based carrier had narrowed losses in its 2021 to 2022 fiscal year, boosted by the lifting of COVID-19 lockdowns.
Photo: AFP
“Over the last year we have seen a very strong post-COVID traffic recovery,” Ryanair chief executive officer Michael O’Leary said in video remarks published alongside the statement.
“People have been locked up for two years and wanted to go back to traveling,” he added.
Revenue more than doubled to 10.8 billion euros on rising fares, as the group reported “strong market share gains” in Ireland, Italy, Poland, Spain and other European destinations.
Passenger traffic increased 74 percent to 168.6 million travelers, with fares 10 percent higher than pre-COVID levels.
“Traffic is now running at 13 to 14 percent ahead of our pre-COVID volumes, but profitability is still running slightly behind where we were pre-COVID,” O’Leary added.
Profits were lifted by “advantageous” fuel hedges, Ryanair said.
Airlines bet against volatile oil prices by hedging, or taking a defensive position on futures markets.
Total operating costs increased 75 percent to 9.2 billion euros, while the group faced a net loss in the fourth quarter of 154 million euros.
The results come two weeks after Ryanair ordered 300 Boeing Co 737 Max jets worth more than US$40 billion for delivery from 2027, alongside a major recruitment drive to stimulate expansion.
The company is targeting an 80 percent increase in annual passenger traffic to 300 million travelers by 2034, compared with this year.
It plans to recruit more than 10,000 new cabin-crew members, engineers and pilots.
Ryanair’s British rival EasyJet PLC last week reported that it slashed net losses in the first half of its financial year, or six months to March, as the sector recovers.
EasyJet, which posted three annual losses in a row due to the pandemic, predicted a rebound to annual profit as holidaymakers shrug off Britain’s cost-of-living crisis.
“Demand for European summer leisure travel looks robust,” Third Bridge Group Ltd analyst Olly Anibaba said. “Despite inflation weighing on consumer spending, European consumers are still opting for leisure travel over other forms of entertainment.”
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