Ryanair records €1.4b annual profit as fares rise

Ryanair records €1.4b annual profit as fares rise

Budget airline Ryanair has disclosed that a rebound in travel demand and higher rates helped it swing to an annual profit of €1.43 billion.

The Dublin-based airline reported a profit for the year ending on March 31 after a 74% increase in passengers to 168.6 million, compared to a net loss of €355 million the prior year.

It said that average airfare increased by 50% from levels recorded a year earlier to €41.

Michael O'Leary, the CEO of Ryanair, warned of financial challenges for the coming year, noting that increasing oil prices would cause the company's fuel expenditure to increase by more than €1 billion.

He declared himself "cautiously optimistic" that the airline may increase earnings slightly in the upcoming year because he anticipates that the continuous travel rebound and increased travel prices would help offset the impact of the increase in fuel costs.

According to Mr O'Leary, Ryanair has "significantly" increased its market share in the majority of the European Union markets it serves.

The countries that had the biggest increases were Ireland (from 49% to 58%), Poland (from 26% to 36%), and Italy (from 27% to 40%).

This summer, Ryanair will provide its most extensive schedule yet, with more than 3,000 flights each day. There is "robust" demand for summer flights, and prices are "trending ahead of last year" during the busiest times.

He anticipates that increasing oil prices will result in a more than €1 billion rise in the company's yearly fuel expenditure.

Ryanair expects its yearly personnel expenditures to increase by 73% to €1.19 billion as a result of a larger fleet, an increase in operations, an expedited pay restoration process, and the termination of Covid-19 payment assistance programs.