Irish low-cost airline Ryanair announced that its net profit multiplied fourfold in the first three months of 2023, driven by an increase in traffic and higher ticket prices.
The company’s net profit reached €663 million despite a significant increase in costs. The airline performed particularly well during the Easter holidays and the May bank holiday. On Monday, the company announced that the airline performed well compared to last year which was “affected by the war in Ukraine.”
“Russia’s invasion of Ukraine in February 2022 damaged traffic and fares in the first quarter of last year,” the company explained.
Ryanair saw the number of passengers climb by 11% over one year to 50.4 million by the end of June and at the same time increased its prices (the average price invoiced per person is up by 27% over one year), which caused its operating revenues to soar by 40% to €3.65 billion.
At the same time, the company saw its operating costs increase by 23%, due in particular to an increase of almost a third in its fuel and personnel costs.
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But while the company is currently operating "the largest summer schedule ever – more than 3,200 flights and up to 600,000 passengers per day" – Ryanair also warns that the dynamics of robust demand and rising fares "seem weaker in the second quarter".
The company expects traffic for the full year “to increase to around 183.5 million passengers (+9%)", slightly less than it initially forecast, "due to Boeing delivery delays in the spring and fall of 2023".
