Ryanair early summer profits nearly quadruple on higher prices and booming demand

Higher ticket prices and booming demand helped Ryanair post record profits at the start of the summer, but the low-cost airline was forced to trim its passenger forecasts because of Boeing delivery delays and warned of an uncertain winter ahead. Ryanair on Monday reported profit after tax of E663mn for the three months to the end of June, nearly four times higher than in the previous year and well above its previous record for the quarter of E397mn in 2017. The low-cost airline followed UK-listed easyJet in delivering record profits, as airlines cash in on strong demand and passengers’ willingness to pay higher air fares despite the weak European economy. Ryanair said its year-on-year comparisons in the quarter were boosted by a strong Easter and an extra bank holiday in the UK, as well as a weaker performance in 2022 because of Russia’s invasion of Ukraine. Revenues increased 40% to E3.65b in the period, more than offsetting a 23% rise in costs, thanks to higher fuel and staff bills. Average air fares rose 42% year on year to E49, but Ryanair reported a “softening” of fares booked by people close to their time of travel in late June and July. It forecast fare rises would ease to “a low double-digit percentage” in the current quarter. CE Michael O’Leary said the airline had little visibility into travel demand heading into the winter, but added “consumers may require some fare stimulation . . . following months of rising mortgage rates and consumer price inflation”.<br/>