High flying demand drives Ryanair's half-year profits to record $1.3B
Author : Saipriya Iyer | Published Date : 2022-11-08
Ryanair, the Ireland-based airline group, announced a spike in profits to a record $1.3 billion (£1.2 billion) for the first half of its fiscal year, as the airline claimed that it was witnessing no slowdown in the demand for air travel with approaching winter which follows a high number of summer passenger.
The airline recorded more passengers traveling at higher prices, compared to 2019. This has happened for the first time since the initial outbreak of the Covid-19 pandemic.
In comparison to a loss of $47 million during the same time the previous year, profits after tax increased dramatically to $1.36 billion in six months ending September. As it carried 95.1 million passengers over time, up from 39.1 million the previous year, revenues more than tripled to $6.5 billion.
Demand for flights has increased across Europe's airlines in recent months as nations have loosened pandemic-related travel restrictions and passengers have started flying again for both business and vacation.
Ryanair reported profits of $202 million between April and June, marking its first gainful spring since the pandemic. Michael O'Leary, the chief executive, claimed that there were good forward bookings through Christmas and that the growth since then had been unanticipated.
Moreover, it was able to increase travel prices for customers by 14% from the time before the pandemic, and it announced that its crew compensation would return to pre-pandemic levels from December 1, four months earlier than originally anticipated.
O'Leary also stated that barring a Covid revival or a conflict escalation that discourages travel, rates were expected to rise into the following year. If capacity continues to decline, rates will once more increase by 5% to 10%.
He further added that Ryanair anticipates strong demand for aviation travel throughout Europe well until 2023. He claimed that there was little evidence of a decline in customer numbers in the UK, Ryanair's primary market.
Source credit: https://www.theguardian.com/business/2022/nov/07/ryanair-half-year-profits-flight-fares-covid
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Saipriya Iyer . .
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