Ryanair Returned to Annual Profit in FY2023, Expects Strong Summer
Ryanair FY2023 Results
Ryanair Holdings plc (RYA.ie) is a low-cost airline group, headquartered in the Republic of Ireland and parent company of Buzz, Lauda, Malta Air, Ryanair & Ryanair UK, connecting 230 airports in nearly 40 countries. The group reported impressive financial results and metrics today, for Fiscal 2023 (period ended March 31). [1]
Traffic grew 74% year-over-year and at 168.6 million customers, it was 13% higher compared to FY2020 and the pre-pandemic period, while having operated at 116% of its pre-Covid capacity. The Group's market share grew "significantly", with Italy, Poland and Ireland highlighting those gains.
The firm sees strong summer performance, when it will run its "largest ever schedule" of almost 2,500 routes with over 3,000 daily flights. It noted "robust" summer demand and said that peak fares are "trending ahead of last year". Last week, UK-based low-cost rival EasyJet (EZJ.uk) also noted strong summer demand [2]. The International Air Transport Association (IATA) said that forward bookings indicate 39.9% growth in Europe this summer travel season. [3]
In spite of the 75% surge in Operating Costs, driven largely by higher fuels costs, the Ryanair Group returned to annual profit of €1.43 billion (after tax), after last year's loss. Its bottom line was also impressive, as Revenues more than doubled to €10.78 billion, boosted by higher fare prices.
Ryanair projects its fuel bill to rise by €1 billion in FY2024, but is "cautiously optimistic" that revenue will grow "sufficiently" to offset this cost and deliver "modest" increase in profits. It did warn of ongoing uncertainties though, including the timing of Boeing 737 Gamechangers deliveries, of which it expects 110 units over the next three summers.
Earlier this month, Ryanair Holdings plc placed a big order of 300 new Boeing 737-MAX-10 airplanes, for deliveries between 2027 and 2033. CEO Michael O'Leary believes that these aircrafts will bring "significant revenue and traffic growth across Europe". [4]
Markets reacted positively to Ryanair's FY2023 solid results and encouraging guidance, as RYA.ie opened higher today. The stock made an impressive start to 2023 and is running a strong month so far.
Nikos Tzabouras
Senior Financial Editorial Writer
Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. He has a long time presence at FXCM, as he joined the company in 2011. He has served from multiple positions, but specializes in financial market analysis and commentary.
With his educational background in international relations, he emphasizes not only on Technical Analysis but also in Fundamental Analysis and Geopolitics – which have been having increasing impact on financial markets. He has longtime experience in market analysis and as a host of educational trading courses via online and in-person sessions and conferences.
References
| Retrieved 22 May 2023 https://investor.ryanair.com/wp-content/uploads/2023/05/FY23-Ryanair-Results.pdf | |
| Retrieved 22 May 2023 https://corporate.easyjet.com/~/media/Files/E/Easyjet/pdf/investors/presentations/HY RNS - Final.pdf | |
| Retrieved 22 May 2023 https://www.iata.org/en/pressroom/2023-releases/2023-05-16-02/ | |
| Retrieved 03 Dec 2023 https://corporate.ryanair.com/news/ryanair-orders-300-boeing-737-max-10-aircraft-worth-40bn/ |
Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, as general market commentary and do not constitute investment advice. The market commentary has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is therefore not subject to any prohibition on dealing ahead of dissemination. Although this commentary is not produced by an independent source, FXCM takes all sufficient steps to eliminate or prevent any conflicts of interests arising out of the production and dissemination of this communication. The employees of FXCM commit to acting in the clients' best interests and represent their views without misleading, deceiving, or otherwise impairing the clients' ability to make informed investment decisions. For more information about the FXCM's internal organizational and administrative arrangements for the prevention of conflicts, please refer to the Firms' Managing Conflicts Policy. Please ensure that you read and understand our Full Disclaimer and Liability provision concerning the foregoing Information, which can be accessed here.