Ryanair, the Irish-based low-cost airline, has announced record profits for the first quarter of its fiscal year (April-June), reaching €663 million. This represents an impressive 290% increase compared to the same period last year.
The company attributes this remarkable earnings rebound to a “strong” increase in activity during the Easter season and the coronation festivities in the UK of King Charles III, held last May.
Despite the challenges caused by the Russian invasion of Ukraine in February 2022, which reduced profits in the first quarter of the previous fiscal year to €170 million, Ryanair has managed to overcome the fall in passenger traffic and ticket sales in the sector.
During the reporting period, the airline carried a total of 50.4 million passengers, representing an 11% increase compared to the same quarter last year. In addition, the load factor, which measures the percentage of seats occupied on each flight, increased three points to an impressive 95%.
The airline’s revenues also grew significantly, reaching €3.65 billion, an increase of 40%. Revenue per passenger increased by 27%, driven by a 42% increase in the average fare to €49.
However, Ryanair also faced a 23% increase in operating costs to EUR 2.94 billion, mainly due to higher fuel prices, staff costs and traffic control operations fees.
Ryanair CEO Michael O’Leary expressed confidence of reaching approximately 183.5 million passengers by next March, an increase of 9 % compared to the previous year. However, he warned of potential headwinds, such as delays in aircraft deliveries by Boeing and fuel price volatility, which could affect financial projections for the second half of the financial year.
Despite these uncertainties, O’Leary was “cautiously optimistic” about a “modest” increase in net profit compared to last fiscal year, when the airline posted earnings of 1.428 billion euros.
With these impressive figures and an optimistic outlook for the future, Ryanair continues to consolidate its position as Europe’s leading low-cost airline.