Ryanair Holdings PLC on Monday reported a substantially narrowed annual loss as revenue recovered, and said a return to profit was within its sights for the current year.
For the year ended March 31, revenue for the Dublin-based budget airline jumped to €4.80 billion from €1.64 billion the year before, as customer numbers recovered to 97.1 million from 27.5 million.
The customer levels are still 35% behind pre-Covid levels, however, Ryanair noted.
The company narrowed its pretax loss by over half to €429.8 million, from €1.12 billion a year prior. In pre-Covid financial 2019, pretax profit was nearing nine figures at €948.1 million.
The airline noted the delay in the relaxation of Covid travel curbs in the UK and EU, the impacts of Omicron and the Russia invasion of Ukraine all led to fares requiring ‘significant price stimulation’.
The average fare in the year was down 27% to €27.
However, ancillary revenue helped to offset the decline, as more guests chose add-on services such as priority boarding and reserved seating.
Ryanair hopes to return to a ‘reasonable’ profit in the year.
‘This recovery, however, remains fragile,’ noted Chief Executive Officer Michael O’Leary. ‘Given the continuing risk of adverse news flows on [Ukraine and Covid restrictions], it is impractical, if not impossible, to provide a sensible or accurate profit guidance range at this time.’
Prices still needed stimulation in the first quarter, the company said, but it is hopeful that pent-up demand will drive peak fares ahead of pre-Covid levels. 80% of fuel for the year is hedged, and the remaining unhedged 20% will likely give rise to cost increases.
Shares in Ryanair were down 2.9% to €13.23 each in Dublin on Monday morning.
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