Ryanair closed its first financial quarter (April 1 to June 30, 2023) with a profit of €663 million, a figure that almost quadruples the result recorded in the same period in the previous year (170 million). Despite this positive result, the Irish airline announced that it will raise the price of its tickets by at least 10% in the summer season compared to the summer of 2022 which coincides with its second fiscal quarter, and After a sharp hike in the interest rate earlier this year.
Indeed, a large part of the airline’s good results on Monday is due to its average fare increasing by 42%, to €49 per passenger in the first fiscal quarter compared to a year ago. In this sense, Ryanair notes that reservations in the second quarter are “strong” so “the increase in rates will be much lower than in the first quarter and lower by a double-digit rate compared to the same period a year earlier.”
The European leader in terms of the number of passengers managed to increase its profits compared to the same quarter of the previous year, when it was seriously affected by the consequences of the war in Ukraine. This year 2023, the “strong” Easter and additional bank holidays in the UK in May allowed the coronation of the new king, along with other events, to recover extraordinary results.
Total revenue for the first quarter increased by 40% to €3,650 million. Fee income increased by 57% to €2,470m. Fares increased by 42%, while prices for complementary services (baggage, catering, in-flight sales, seat reservations, etc.) increased by 15% to €1,180 million (€23.30 on average per passenger).
Traffic grew by 11%, to 50.4 million passengers, with a load factor of 95%, up three percentage points from last year. Total operating costs increased by 23% to €2.94 billion, mainly due to higher fuel costs which rose by 30%, personnel costs and airport fees.
Delays in delivering new Boeing aircraft It caused the company to announce lower passenger growth forecasts. The Irish company expects traffic for the entirety of fiscal 2024 to grow to approximately 183.5 million (9% more). The airline was expecting to deliver 51 aircraft on or before April 30, but the last of those deliveries has been delayed until July. Deliveries in winter 2023 and spring 2024 will be less affected, though Boeing has warned that delays may occur from April 2024 to June 2024.
The final result of the first semester will largely depend on the closing reserves for August and September. “As is typical for this time of year, we had very limited visibility in the third quarter and zero visibility in the fourth quarter. After enjoying an excellent Christmas and New Year’s travel period last year,” they noted from the company.
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