Ryanair expects increased demand for flights in summer
2023.01.30 04:35
Ryanair expects increased demand for flights in summer
By Kristina Sobol
Budrigannews.com – Holdings of Ryanair PLC (IR:) declares that due to the reopening of China’s economy and recent strength in the, it anticipates strong passenger demand during its crucial Easter and summer travel seasons, when more tourists from Asia and North America return to Europe.
The budget airline said in a statement about its third-quarter results that bookings are “closer-in than in spring 2020,” which it considers to be before COVID-19 restrictions take effect.
Ryanair expects to report a fourth-quarter loss despite predicting a “robust” increase in customers during the Easter celebrations because the holiday will not fall in March, the fiscal year’s final trading month.
However, it was predicted that the company’s profit after taxes would be between €1.325 billion and €1.425 billion (one euro equals $1.0885), confirming the improved outlook that had been revealed earlier in January. Passenger traffic is expected to reach 168 million for the full year 2023, which is significantly higher than the 156.7 million that Bloomberg consensus forecasts.
Ryanair turned a loss of €96 million in the year before in the three months ending December 31 into a profit of €211 million after taxes. The number was also higher than it was before COVID.
The company stated:
“With no adverse impact from COVID or the war in Ukraine,” “strong pent-up travel demand over the October mid-term and peak Christmas/New Year holiday season stimulated strong traffic and fares across all markets.”
The company’s total quarterly revenue increased by 57% to €2.31 billion, but operating costs rose by 36% as a result of higher fuel and staffing costs.
Bernstein analysts said that Ryanair’s most recent earnings were “resilient,” and that the company’s outlook indicates that summer travel will be strong.
