Ryanair swings back to profit as summer bookings and fares soar

Ryanair has swung back to a near-record profit and the airline expects earnings to rise further this year, thanks to higher ticket prices and soaring summer bookings.

The budget airline reported pre-tax profit of €1.4billion (£1.2billion) for the year to the end of March, compared to a net loss of €355million (£309million) in the previous 12 months and a record €1.45billion profit in 2018.

Total revenues rocketed 124 per cent to €10.8billion (£9.4billion), reflecting a rebound in travel following Covid-19 restrictions in place the previous year. 

Ryanair saw a 74 per cent year-on-year rise in passenger numbers, a 50 per cent increase in average fares and a near-80 per cent rise in ancillary revenues, such as baggage fees and on-board food.

The group carried nearly 169million passengers last year and said it expects to fly an even higher 186million this year, thanks to its largest-ever summer schedule of 3,000 daily flights.

Average ticket prices rose by 50 per cent to €41 (£36) and were up 10 per cent compared to pre-pandemic levels, with the airline urging customers to book early to avoid further expected rises.

Chief executive, Michael O’Leary, said: ‘To date, summer 2023 demand is robust and peak summer 2023 fares are trending ahead of last year.

‘First quarter fares, which benefited from a strong Easter in April (and a very weak previous year comparable due to Russia’s invasion of Ukraine) will be significantly higher than the first quarter of 2022-23.’

Passengers also spent more on extras such as priority boarding and reserved seating, or around €23, or £20, per person on average.

Other major airlines have all pointed to strong summer bookings, showing that people prioritise travel despite the cost of living crisis squeezing their finances.

Last week, easyJet reported an 80 per cent rise in revenues, while British Airways owner IAG swung back to profit in the first quarter thanks to high demand for holidays and lower fuel prices.

Ryanair expects the its annual fuel bill to increase by more than €1billion because of higher oil prices, but said it was ‘cautiously optimistic’ that surging passenger numbers and higher ticket prices will more than offset that.

The company, which this month ordered 300 new Boeing 737 Max-10 aircraft in a deal understood to be worth over £32billion, expects the larger fleet to allow it to carry 300million passengers a year by March 2034.

O’Leary said: ‘Despite ongoing uncertainty over the timing of Boeing deliveries, almost 15 per cent unhedged fuel, limited second-quarter visibility and zero second-half fare visibility (normal at this time of year), we are cautiously optimistic that 2023-24 revenue will grow sufficiently to cover our one billion euro higher fuel bill and still deliver a modest year-on-year profit increase.

‘This guidance remains heavily dependent upon avoiding adverse events during 2023-24, such as the war in Ukraine or further, repeated, Boeing delivery delays.’