LONDON – On January 30, the ULCC, Ryanair, published its Q3 2022/23 financial standings, showing a very strong profit gain.
Ryanair’s Q3 Standings…
To start things off, Ryanair Holdings Plc, also known as Ryanair Holdings Group, has made a profit of €211 million for its third quarter of 2022/2023 (Q3) which runs from October 1, 2022, till December 31, 2022.
Ryanair Holdings Group consists of mainline Ryanair based out of Ireland, Ryanair UK, Buzz based out of Poland, Malta Air based out of Malta, and Lauda Europe also based out of Malta.
This huge profit gain for the carrier dwarfs the loss of €88 million that the group saw in their Q3 2019/2020, prior to the Covid-19 pandemic.
Comparing Ryanair’s figures to Q3 2021, this is how it stands –
- Customers – 31.1 million in Q3 2021 to 38.4 million in Q3 2022, a 24% increase.
- Load Factor – 84% in Q3 2021 to 93% in Q3 2022, a nine percentage point increase.
- Revenue – €1.47 billion in Q3 2021 to €2.31 billion in Q3 2022, a 57% increase.
- Operational Costs – €1.59 billion in Q3 2021 to €2.15 billion in Q3 2022, a 36% increase.
- Net (Loss) / PAT – A loss of €96 million in Q3 2021 to a profit of €211 million in Q3 2022.
Executive Comments…
Commenting on the group’s success of growth during Q3, Chief Executive Officer, Michael O’Leary has said, “Ryanair secured strong market share gains in key EU markets as we operated 112% of our pre-Covid capacity during the first 9 months of FY23. The most notable gains were in Italy (from 26% to 40%), Poland (27% to 38%), Ireland (49% to 58%), and Spain (21% to 23%).”
“Our Routes team continues to negotiate traffic recovery growth deals with airport partners as competitors struggle to recover capacity (down as much as 20% this winter) and grapple with rising costs.”
“Up to the end of Q3, Ryanair has taken delivery of 84 B737 Gamechangers and we’re planning FY24 growth based on 124 new aircraft for peak S23, although there is a risk (despite recent Boeing production improvements) that some of our Gamechanger deliveries could slip.”
“Over 230 new routes (total of 2,450 with 3,200 daily flights) have been announced for FY24. With Asian tourists now returning and a strong US$ encouraging Americans to explore Europe, we’re seeing robust demand for Easter and summer 2023 flights.”
Over the past 3 years, numerous airlines went bankrupt and many legacy carriers (incl. Alitalia, TAP, SAS, and LOT) significantly cut their fleets and passenger capacity, while racking up multi-billion-euro State Aid packages.”
“These structural capacity reductions have created enormous growth opportunities for Ryanair. These opportunities, combined with our reliability, lowest (ex-fuel) unit costs, strong fuel and US$ hedges, fleet ownership, and strong balance sheet, ensure that the Group is well-placed to grow profitability and traffic to 225m p.a. by FY26.”
Ryanair’s Q4 Outlook…
Michael O’Leary also commented on the group’s 2023 outlook, saying, “While bookings continue to be closer-in than in spring 2020 (pre-Covid), we have reasonable visibility for the remainder of FY23, with FY traffic guided at 168m.”
“Ryanair expects Q4 to be loss-making due to the absence of Easter from March. As announced on 4 Jan., we are guiding FY23 PAT (pre-exceptionals) in a range of €1.325bn – €1.425bn (previously €1.00bn – €1.20bn).”
“This guidance remains heavily dependent upon avoiding adverse events in Q4 (such as Covid and/or the war in Ukraine).”
