Ryanair sees ‘strong’ travel demand over Easter, summer break By Investing.com
By Scott Kanowsky
Investing.com — Ryanair Holdings PLC (IR:) said it expects to see increased passenger demand during the key travel seasons of Easter and summer, when more travelers from Asia and North America returns to Europe due to the reopening of the Chinese economy and recent strength within.
In a statement announcing the third quarter, the budget carrier noted that pre-orders are “coming closer than spring 2020,” referring to the amount of time it considers before the launch. impact of restrictions due to COVID-19.
Despite guidance for “strong” customer growth over the upcoming Easter holiday, Ryanair is still expected to post a loss in the fourth quarter as the holiday season will not fall into March, the last trading month. end of the financial year.
However, annual after-tax profit is forecast to reach between €1.325 billion and €1.425 billion (1 euro = $1,0885), reiterating the improved outlook announced earlier in January. Passenger traffic for the full year of 2023 is also forecast at 168 million, much higher than Bloomberg’s consensus forecast of 156.7 million.
In the three months to December 31, Ryanair achieved after-tax income of €211 million from a loss of €96 million in the previous year. This number is also higher than pre-COVID levels.
“Travel demand is strongly pent-up in October[ober] The mid-term and peak of the Christmas/New Year holidays (without adverse effects from Covid or the war in Ukraine) stimulated traffic and increased fares across all markets,” the airline said. know.
Total quarterly revenue increased 57% to €2.31 billion, although this increase was partially offset by a 36% increase in operating costs due to higher fuel and staff costs.
Analysts at Bernstein have described Ryanair’s latest earnings as “resilient”, adding that the company’s outlook points to an active summer travel period.