Ryanair Reports Impressive Annual Profit of €1.43 Billion, Expects Modest Growth in Next 12 Months
Dublin-based airline Ryanair announced a near record profit of €1.43 billion ($1.57 billion) for the fiscal year ending in March. The company expressed cautious optimism about the next 12 months, projecting a modest increase in profits. Ryanair, Europe’s largest airline in terms of passenger numbers, reported notably robust summer demand.
Although the airline anticipates that summer European short-haul capacity will remain below pre-COVID levels, it expects peak fares to surpass last year’s figures. Ryanair believes that the continued capacity constraints in the market will work in its favor.
Ryanair’s CEO, Michael O’Leary, noted that the backlog of aircraft deliveries from OEMs, particularly 110 Boeing B737 Gamechangers over the next three summers, will limit capacity growth in Europe for the next four years. This positions Ryanair to benefit from significant growth opportunities due to its cost advantages, fuel hedging, strong balance sheet, low-cost aircraft order book, and proven operational resilience.
During the fiscal year ending in March, Ryanair achieved a record-breaking 168.6 million passengers, surpassing its pre-pandemic annual record of 149 million. The company aims to further increase its traffic to 185 million in the current fiscal year, although recent Boeing delivery delays may affect this target and shift some growth to the lower-yielding second half. Ryanair expects a shortage of up to 10 new jets in June and July.
In January, Ryanair revised its after-tax profit forecast to €1.325 billion to €1.425 billion following stronger-than-expected Christmas traffic and fares. The final profit figure exceeded the forecast of €1.398 billion from the company’s analyst poll.
The airline’s remarkable turnaround comes after incurring a loss of €355 million in the previous pandemic-impacted financial year. Ryanair’s near-record profit of €1.43 billion for the year to March 31, 2023, came close to surpassing its record profit of €1.45 billion achieved in the same period in 2018.
( $1 = €0.9084)
