Ryanair said it enjoyed ‘strong Christmas/New Year traffic’
Ireland’s Ryanair returned to profitability in the last three months of 2022 as tourists flocked to low-cost airlines during the cost of living crisis in Europe.
Ryanair login a profit after-tax was 211 million euros ($229 million) in the third quarter of the fiscal year, or the three months to the end of December.
That is in stark contrast to a net loss last time was 96 million euros, it added in a statement on Monday.
Passenger numbers increased by nearly a quarter to 38.4 million passengers. This marks a 7% increase from the end of 2019, just before the COVID pandemic devastated airline demand.
The Dublin-based carrier enjoyed “strong Christmas/New Year traffic” during the reporting period, winning market share in key EU countries including Ireland, Italy, Poland and Spain.
Monday’s news comes after British budget rival EasyJet last week raised its annual profit forecast after record demand, as its customers also prioritized holidays and ignored soaring inflation.
However, it also follows the weekend collapse of UK regional airline Flybe, which on Saturday filed for bankruptcy for the second time in three years, as it faces fierce competition. .
Both EasyJet and Ryanair urge Flybe employees to apply for roles.
‘Strong position’
Britain, Ryanair’s key market outside of Ireland, is expected to slip into recession this year due to soaring consumer prices.
However, budget service providers have thrived during the festive period.
Independent aviation analyst John Strickland told AFP: “Ryanair has built a strong position thanks to its low-cost base, high liquidity and ready workforce, which is significantly retained across the ocean. Translate”.
“All of this translates into a growing capacity offering to meet emerging demand from customers who are more focused than ever on value for money.
“Ryanair has turned every crisis to its advantage over the past 20 years and this confirms the power of its low-cost business model.”
However, Ryanair warned on Monday that it still expects to record a loss in the final quarter of the fiscal year, in part because Easter falls in April this year.
Earlier this month, the carrier predicted an annual net profit of between €1.325 billion and €1.425 billion, upgrading previous guidance on solid festival bookings.
© 2023 AFP
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