After registering a net loss of €335 million in 2021, Irish airline Ryanair rebounded with a €1.4 billion profit in 2022, the company announced on Monday.
Europe's largest budget airline saw traffic rise by 74% in the past year, to almost 170 million passengers. Its revenue more than doubled, reaching €10.8 billion.
“We have seen a very strong recovery in post-Covid traffic... it is now 13-14% higher than our pre-Covid volumes but profitability is still slightly lower,” Ryanair CEO Michael O’Leary said.
The company attributes its results to the "strong recovery in traffic and favourable oil hedges". More than 80% of the carrier's fuel was bought ahead of time at lower costs through a type of investment known as hedging. Ryanair also said in a statement that it benefited from higher fares, despite operating costs rising by 75%. The low-cost airline's prices rose by 10%, compared to pre-COVID levels.
“Ryanair’s market share has increased considerably in most EU markets”, particularly in Italy, Poland or Ireland, O’Leary added.
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For summer 2023, the airline plans to implement its largest-ever flight schedule, with more than 3,000 daily routes and hopes to increase passenger numbers by 10% this year to 185 million. Their long-term ambition is to fly 300 million people a year by 2034, more than any other airline, the Guardian reports.
Ryanair, which sees “a modest increase in profits” this year, notes that its bottom line could be hurt by “modest increases” in costs and “recent Boeing delivery delays.”
Earlier this month, the company spent over €36 billion on 300 new Boeing aeroplanes, in its largest order from the aircraft manufacturer.
