Ryanair ( NASDAQ: RYAAY ) notched stronger than expected revenue in its fiscal third quarter alongside record profits, according to an earnings release on Monday.
The Irish airline reported €0.18 in earnings per share for the quarter alongside a 57.1% jump in revenue from the prior year to €2.31B. Traffic for the quarter also exceeded pre-pandemic levels by 7%, bolstered by both pent-up demand and the demise of many rival carriers.
“Over the past 3 years, numerous airlines went bankrupt and many legacy carriers (incl. Alitalia, TAP, SAS and LOT) significantly cut their fleets and passenger capacity, while racking up multi-billion-euro State Aid packages,” CEO Michael O’Leary commented. “These structural capacity reductions have created enormous growth opportunities for Ryanair.”
He added that the carrier is seeing more spending from both American and Asian tourists. O’Leary expects particularly strong travel demand around the Easter holiday and during the summer.
“While bookings continue to be closer-in than in spring 2020 (pre-Covid), we have reasonable visibility for the remainder of FY23, with FY traffic guided at 168M. Ryanair expects Q4 to be loss making due to the absence of Easter from March,” O’Leary said. “As announced on 4 Jan., we are guiding FY23 PAT in a range of €1.325B - €1.425B (previously €1B - €1.2B). This guidance remains heavily dependent upon avoiding adverse events in Q4 (such as Covid and/or the war in Ukraine).”
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Ryanair reports strong holiday traffic, reaffirms raised guide