Ryanair Holdings has recorded an annual profit of €1.43 billion as the budget airline group continued to increase market share in several key European markets.
The Ireland-based company saw a huge rebound in traffic for its financial year ending on 31 March, with passenger numbers surging by 74 per cent year-on-year to reach 168.6 million.
The company said it had benefited from “strong full-year traffic recovery, improving fares, industry leading cost base and advantageous fuel hedges”.
Ryanair’s net profit of €1.43 billion compares with a loss of €355 million in the 2021-22 financial year, as revenue rose by 124 per cent year-on-year from €4.8 billion last year to €10.8 billion in 2022-23.
The airline said that its average fares of around €41 for the year were 10 per cent higher than pre-pandemic, while ancillary revenue averaged just under €23 per passenger.
Michael O’Leary, the group’s CEO, said that its market share has “grown significantly in most EU markets”, with overall capacity up by 16 per cent on pre-Covid figures. He added that the “most notable gains” in share had been achieved in Italy, Poland and Ireland.
Ryanair said that demand for summer 2023 was “robust”, with fares during peak periods “trending ahead of last year”.
The group is expecting another 10 per cent increase in passenger during the current financial year, which would take total traffic up to 185 million, although delays in the delivery of aircraft from Boeing may “reduce this target slightly”.
Ryanair warned that its fuel bill was likely to rise by more than €1 billion in the current year due to higher oil prices. Although it was “cautiously optimistic” that its revenue would grow sufficiently to cover these higher fuel costs and “still deliver a modest year-on-year profit increase” for the year ending in March 2024.
The airline is also looking to target the corporate travel market by restarting its distribution partnership with Amadeus earlier this month.