Ryanair sees profits soar ahead of summer despite higher ticket prices

Europe’s largest airline Ryanair hit a near record €1.4 billion in profits at the end of its last financial year and expects an even stronger 2023 despite higher operating costs driving-up ticket prices.

The airline’s financial year ends in March 2023.

Following a tumultuous COVID-19 pandemic which saw the airline report a loss of €306 million in 2020 and €96 million in 2021, things are looking up for the low-cost airline. The airline is cautiously optimistic that results could top the record €1.45bn Ryanair made in 2018, according to its financial reports.

The airline said that it expects to carry 186 million passengers in 2023, facilitated by its largest summer schedule yet covering 2,500 routes and 3,000 daily flights. The airline plans to fly 300 million passengers by 2024.

Compared to pre-COVID-19, the airline is operating at 125 per cent of its capacity, and is expected to continue growing, having submitted an order for 300 additional aircraft from Boeing worth €37 billion.

Higher costs in fuel and capacity costs are expected to increase operating costs by €5 per passenger, however, the airline is cautiously optimistic that revenues will grow enough to cover that.

“We will continue to wipe the floor with every other airline in Europe,” said Mr O’Leary in a recent interview with the Financial Times.

Evidently, the pent-up demand from COVID-19 has yet to die down, as Malta International Airport recently reported a bumper first four months of the year, having received over 700,000 passengers by April.

This is already an 8.4 increase in traffic compared to the same period of time in 2019, which saw Malta receive a record total of 2.75 million tourists.