Irish airline Ryanair expects to transport 10 percent more passengers this year, mainly thanks to strong summer air travel demand. The budget airline wants to increase turnover because ticket prices are higher this summer than before the corona pandemic.
With this, Ryanair hopes, among other things, to absorb the increase in fuel costs and to further increase profitability.
Ryanair transported almost 169 million passengers in the past financial year ending March, almost three-quarters more than the previous year. As a result, the budget airline saw its market share increase. Ryanair experienced the most significant growth in Italy, from 27 percent to 40 percent. But the airline also gained a foothold in Poland (from 26 percent to 36 percent) and Ireland (from 49 percent to 58 percent). This summer, Ryanair expects to operate its largest schedule, with nearly 2,500 routes and more than 3,000 daily flights.
Due to the increased number of passengers, Ryanair more than doubled its turnover in the past financial year, from 4.8 billion to almost 11 billion euros. As a result, the company recorded black figures for the first time in years, a net profit of 560 million euros. A year ago, Ryanair made a loss of almost 1.5 billion euros. This was mainly due to the consequences of the corona crisis, which put pressure on income.
For this year, the budget airline is considering 1 billion euros in extra fuel costs. This is due to the rise in oil prices. But because the airline is profitable again, chief financial officer Neil Sorahan expects to be able to cover these costs. He also expects “modest growth” for this year, with Ryanair aiming to carry around 185 million passengers.
In time, Ryanair hopes to further reduce fuel costs by purchasing more fuel-efficient aircraft. Earlier this month, the airline signed an agreement with Boeing to purchase 300 new aircraft. “The additional seats will not only generate significant revenue growth but, combined with greater fuel, carbon and noise efficiency, will further enhance Ryanair’s significant cost advantage over all competing European airlines,” said Sorahan.
