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BUDGET AIRLINE RYANAIR has reported quarterly profits soaring nearly four-fold thanks to demand over Easter and the coronation weekend, but flagged pressures on consumers from surging costs and mortgage rates.
Profit after tax soared to €663 million in the three months to the end of June from €170 million in the carrier’s prior first quarter, a statement said.
Passenger traffic jumped 11% to 50.4 million customers. Revenue surged 40% to €3.65 billion.
The figures come as airlines are battling to evacuate tourists from the Greek island of Rhodes due to wildfires amid a searing heatwave in southern Europe.
Ryanair’s chief financial officer Neil Sorahan reportedly said the group was still operating a “full schedule” of flights to the fire-ravaged island, but is not yet putting on additional flights.
Its first quarter figures showed Ryanair fares were 42% higher on average at €49 and passenger traffic grew 11% against weak comparisons a year earlier, when demand was impacted following Russia’s invasion of Ukraine in February 2022.
But it said fare growth was starting to ease back, rising by a “low double-digit percentage” in its second quarter and said it may need to take action on fares to boost demand as consumers face cost pressures.
“We are conscious that consumers may require some fare stimulation to fill our 25% greater seat capacity this winter (compared to pre-Covid) following months of rising mortgage rates and consumer price inflation,” the group said.
It cut its passenger growth forecast for the full year to €183.5 million, up 9%, against previous guidance for €185 million due to delays of Boeing aircraft, but said it expects annual profits to be “modestly ahead” year on year.
Speaking on RTÉ’s Morning Ireland this morning, Sorahan said that Ryanair plans to invest €3 billion into Ukraine after the end of the war and that the company intend to return to the region – where they were the largest airliner before the invasion.
Sorahan said: “We would like to go back into Ukraine, we plan to be the first airline back in there when the war is over, or when the European Aviation Safety Authority say it’s safe to do so.”
Sorahan added that the company has “kept in touch” with airports and relevant parties who, according to the CFO, are “very keen to get us in to help with rebuilding their country”.
Boss Michael O’Leary called for “urgent reform of Europe’s inefficient ATC (air traffic control) system” as airlines face a summer of disruption from strikes.
He wants the European Union to protect “overflights” during industrial action.
He said: “Over the past six months, French ATC alone has held 60 days of strikes, during which the French Government used minimum service laws to protect local/domestic flights while disproportionately cancelling overflights.
“We, and our customers, call on the European Commission president, Ursula von der Leyen, to protect the single market for air travel and minimise the impact of ATC strikes on EU citizens.”
Rival easyJet warned last week over a challenging summer for ATC strike disruption.
Includes reporting from © AFP 2023 and Muiris O’Cearbhaill
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Let’s face it. We’d be robbed blind if we didn’t have Ryanair. Great company. Amazing success. Keep it going.
@Andrew Kenny: seems like Ryanair have been fleecing it’s own customers. Thats an insane amount of profit. Wait until we see full summer profit figures including July and August.
@SF Means Sh!t 4 Free: No it’s not. When you break it down it actually shows how good ryanair is.
@Peter: To bring my family to see their granny in Eastern Europe cost me almost 250 per one way ticket. This is more than double what it was before covid, so +1000 on us alone. To be fair, it is not only Ryanair – all airlines had put up prices, we didn’t have much of a choice!
Michael O’ Leary for minister of finance!
@Paddy: why would he do that to himself?
We should all fly more to annoy the climate freaks
@Tom Murphy: Off you go.
@Tom Murphy: yes, please leave
@James Carroll: He’s not allowed to travel without his mummy or daddy.
@Tom Murphy: Please, book yourself a one way ticket ticket only. Goodbye.
Man, those were the times when you were not afraid to book a Ryanair flight cause you knew the final price will still be friendly, even after luggage and seats. Happy times…
@Chris: very very true…they need to stop calling it a budget airline…its approximately the same price as aerlingus now and if ya add in the walk to the gate in T1 and the priority boarding line which is longer than the normal line its actually just as easy to fly with other airlines … I do agree from many years they were the people’s champions and ya put up with the no frills for the price ya where getting the flight at but not anymore
@Chris: maybe just don’t buy the optional extras, and your ticket price will stay the same as advertised .
It seems like French ATC’s have gone on strike at least once a year since the beginning of time. Their union is basically a terrorist organisation that has declared a jihad against your holidays at this stage.
@Zim Zimma: vermin should all be jailed
Go Mick, only for you we would be robbed blind.
The only people who should be allowed to fly are climate activists attending conferences in sunny seaside locations where they can all agree that flying is bad for the climate
Passenger traffic jumped 11% to 50.4 million customers. Revenue surged 40% to €3.65 billion. How does all that fit in with the climate action plan.
I’d say some of that profit has come from savings on fuel by taking shortcuts over people’s houses in Dublin
Well Done Mick keep up the good service
“fare stimulation”
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