Milan-Brindisi flight, does not turn off the phone and causes a 3-hour delay (photo Lapresse)
The boom in summer traffic and the increase in ticket prices lead Ryanair to record profits
Ryanair, despite the challenges and cost increases, has announced extraordinary financial results in the first half of fiscal 2023. The Irish airline reported a net profit of 2.18 billion of euros, net of taxes, recording an impressive increase of 59% compared to the same period of the previous year. Overall revenues reached 8.58 billion euros, marking an increase of 30%.
This news was disclosed directly by Ryanair, who attributed the financial success to a combination of factors, including the strong Easter season in the first quarter, record summer traffic and the increase in ticket prices. Despite the significant increase in fuel costs during the semester, the company managed to achieve exceptional results.
During the year, Ryanair was also involved in debates and controversies with the Italian government, especially regarding to ticket prices. However, the company has continued to thrive, demonstrating remarkable resilience in dealing with the challenges of the aviation industry.
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Earnings per share (EPS) increased by 72%, reaching 1.91 euros compared to 1.11 euros recorded in the same period of the previous year. Furthermore, the number of passengers transported grew by 11%, reaching the figure of 105.4 million. Another significant element is the increase in ticket prices, with a average increase of 17% in just one year. This led to a notable increase in operating revenues, which grew by 30% to reach 8.6 billion euros.
In parallel, i costs increased by 24%, reaching 6.2 billion euros. This increase was mainly influenced by the increase in fuel costs (+29%, reaching 2.8 billion euros), but also involved personnel costs and costs related to air traffic control.
Looking to the future, Ryanair continues to target significant growth. The company it expects to carry approximately 183.5 million passengers for the entire financial year, recording an increase of 9%. However, it is important to note that this goal is contingent on Boeing delivering the aircraft on time by the end of the year. Ryanair has already reported delays in receiving aircraft, creating some uncertainty in the forecast.
For the full financial year, the company expects a net profit, after tax, of between 1.85 and 2.05 billion euros, with the caveat of “modest losses” during the winter period in the second half of the year. However, these forecasts are subject to unanticipated external factors, such as adverse events (for example, in Ukraine or Gaza), which could significantly affect the results.
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