Ryanair Raises Full-Year Profit Forecast Following Strong Christmas Season, Reports Reuters

By Padraic Halpin

DUBLIN (Reuters) – Ryanair has raised its after-tax profit forecast by up to 325 million euros, pointing to a surge in travel demand while also cautioning that COVID-19 and the ongoing war in Ukraine could still impact results.

As the largest airline in Europe by passenger numbers, Ryanair now expects profits for the year ending in March to range between 1.325 billion euros and 1.425 billion euros, an increase from the previous estimate of 1 billion to 1.2 billion euros. This adjustment comes after stronger-than-anticipated holiday traffic and fares.

With these updated projections, Ryanair is poised to significantly exceed the 1 billion euro annual profit it achieved before suffering losses during the two years of the pandemic, nearing the record of 1.45 billion euros set for the year ending March 31, 2018.

The airline anticipates reporting an after-tax profit of nearly 200 million euros for the three months ending December 31, boosted by a boom in travel demand during the Christmas and New Year period. This would mark the highest quarterly profit for that timeframe in the airline’s history, nearly doubling the 106 million euros earned during the same period in 2017.

However, Ryanair expects losses from January to March due to the Easter holidays occurring in April and a recent decline in traffic and pricing for flights from the United Kingdom and between Irish and regional UK airports.

The Irish airline also expects to carry 168 million passengers in its financial year ending in March, surpassing its previous record of 149 million.

This updated guidance remains highly contingent on avoiding negative events over the next three months, including potential impacts related to COVID-19 or the war in Ukraine.

Earlier on Wednesday, Ryanair announced that it flew 11.5 million passengers in December, marking a 3% increase over its pre-COVID peak and continuing a trend of nine consecutive months of surpassing comparable pre-pandemic passenger numbers.

CEO Michael O’Leary noted at the beginning of December that average airfares for Christmas had risen by a low double-digit percentage year-on-year, as travelers took to the skies without restrictions for the first time in three years.