Ryanair back in profit after costly add-ons boost business 

Ryanair has racked up its first annual profit since the pandemic as it cashes in on money-spinning add-ons.

The budget airline reported earnings of £1.2billion in the 12 months to March having made a £308million loss the year before when Covid continued to wreak havoc across the industry.

But with holidaymakers taking to the skies once again, it carried 169m passengers in the financial year, up from 97million in the previous 12 months.

More than a third of its £9.3billion revenue haul came from additional costs placed on customers, including extra charges for priority boarding and sitting with friends and family on the plane. 

Ryanair said the average price of a ticket climbed 50 per cent to £36 last year – reflecting the increasing pressure of spiralling fuel costs. 

And it made an additional £20 per passenger through so-called ancillary revenues such as checking in luggage.

The Dublin-based company said that although the demand for European short-haul flights continues to lag behind 2019 levels, appetite remains ‘robust’ as it heads into the main holiday season.

Ryanair said it would be running its ‘largest ever schedule’ – some 3,000 flights a day over summer – with top destinations including Italy and Spain. 

But it said those seeking the sun should plan ahead and book early to avoid surging prices for last-minute flights.

‘Forward bookings and air fares currently into [summer] are strong and we continue to urge all customers to book early to avoid rising “close-in” prices,’ a spokesman for the airline said.

Ryanair boss Michael O’Leary said the fuel bill was set to surge by more than £869million in the coming year due to consistently high prices – spelling further price hikes for flyers in the coming months.

Analysts at Peel Hunt said the fuel bill estimates were £350million more than expected but said the strong demand for holidays would offset some of this pain for the airline.

And other experts said Ryanair’s figures show how consumers are likely to splash out on holidays despite the ongoing pressures on the purse strings. 

Victoria Scholar, head of investment at Interactive Investor, said: ‘After the challenges of the pandemic and Russia’s invasion of Ukraine which both heavily weighed on passenger traffic, Ryanair has enjoyed an impressive annual performance thanks to a recovery in demand and fortuitous fuel hedging. 

Despite cost-of-living pressures, which have hurt discretionary spending, individuals and households appear to be prioritising their summer holidays.’

Ryanair predicts further growth in traveller numbers in the year to March 2024, hoping to fly 185m passengers over the 12 months. The figures echo an upbeat set of results from rival airlines in recent weeks.

Last week Easyjet reported booming demand with boss Johan Lundgren saying travel is still ‘the number one priority’ for many households. 

British Airways owner IAG – which also owns Aer Lingus – also said there were ‘healthy forward bookings’ for the summer.