Authors: Muvija M. and Conor Humphries
London: Chief Executive Michael O’Leary told Reuters on Tuesday that Ryanair is hoping but not guaranteed to return to pre-COVID profit levels of over 1 billion euros ($1 billion) this year as travellers trade down to low-cost carriers.
The largest airline in Europe by passenger count stated last month that it was too early to make meaningful profit forecasts for its fiscal year, which ends on March 31, 2023.
“We want to return to profitability of over $1 billion, but this is not definite. “Put simply, we are making every effort,” O’Leary stated in an interview with Reuters.
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“I’m hopeful. But this winter, there is too much uncertainty about Ukraine and its economy, he said.
With a prediction of 166.5 million for the current fiscal year, it is already certain that Ryanair will break its annual passenger record of 149 million set before COVID.
However, according to O’Leary, the European short-haul market would not recover to pre-COVID levels until 2023 or 2024 because of high fuel prices, economic upheaval, and staffing difficulties.
“In a very dark, deep recession, as we’ve experienced in the past, the whole market may level out or decrease somewhat, but more and more individuals will go for low-cost airlines such as Ryanair,” he explained.
“There is a possibility that the economic situation this winter will compel people to fly less, but they will not stop flying entirely,” he added.
O’Leary said that Ryanair’s winter bookings were higher than they had been before the pandemic. This was especially true around Christmas and in October, when Britain’s schools are on break and Ireland has a long weekend for a holiday.
“We’re seeing significantly more advanced reservations at higher costs,” he added.
Prior to the interview, O’Leary told a press conference that average prices are anticipated to increase by 3-4% this year and 3-5% next year. The airline will have an average of 4% vacant seats in August, matching the post-COVID record set in July.
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O’Leary said that Ryanair may still have some limited strikes, but that the company will “work around this.”
($1 = 0.9977 euros)
