Ryanair accounts for the profit as demand for travel refunds

Ryanair has reported a profit for the first quarter of the year as traffic rebounded sharply following the easing of Covid restrictions.

The airline reported a profit after tax of 170 million euros from April to June, the first fiscal quarter of the year. In the first quarter of 2021, the company recorded a loss of 273 million euros.

However, this year’s profit remained well below the profit after tax of €243 million in the first quarter of 2020.

Revenue increased 602 percent to €2.6 billion in the quarter compared to the same period in 2021.

Guest numbers also recovered strongly as restrictions were lifted and the desire to travel returned.

Passenger numbers rose to 45.5 million in Ryanair’s fiscal first quarter from 8.1 million a year earlier. This meant growth of 461 percent and is also 9 percent above pre-Covid levels.

Load factor also rose to 92 percent, compared to 73 percent in the same quarter last year.

However, operating costs increased by 250 percent to 2.38 billion euros, which included a 560 percent increase in fuel costs to 1 billion euros.

The airline said Easter bookings and fares were “seriously damaged” by Russia’s invasion of Ukraine in February.

This has eased somewhat as consumers look for a summer vacation, with summer 2022 capacity for sale 115 percent ahead of summer 2019 levels.

Chief Executive Michael O’Leary pointed out that the emergence of the Omicron variant last winter and the war in Ukraine highlighted how “fragile” the air travel market remains.

He highlighted the risk of new Covid variants in the fall.

The airline is aiming to grow traffic to 165 million during the financial year, up 11 percent from the pre-Covid level of 148 million.

However, no financial outlook can be given at this time. O’Leary stated: “It is too early to make any meaningful statements given our later booking profile, lack of visibility, volatile oil prices, potential Covid, geopolitical and supply chain risks [profit after tax] leadership at this point.”

Ryanair has also seen strikes in some European markets, with the airline saying it has now reached collective agreements with 80 per cent of pilots and 70 per cent of cabin crew. It added: “We hope to finalize arrangements with the small remaining balance in the near future.”

Ryanair signed a collective agreement with the Spanish and French pilot unions last week, but pilots at both Brussels airports went on strike last weekend.

Ryanair also pointed to ongoing airport disruptions on some of its routes, but said it remained confident of being able to operate “almost 100 per cent” of scheduled flights.

https://www.independent.ie/business/ryanair-posts-profit-as-demand-for-travel-returns-41864587.html Ryanair accounts for the profit as demand for travel refunds

Fry Electronics Team

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