Ryanair Expects to Return to Profitability in Fiscal Year 2023 -- Update
May 16 2022 - 2:02AM
Dow Jones News
By Anthony O. Goriainoff
Ryanair Holdings PLC said Monday that it expects to return to
profitability in fiscal 2023 as it reported a consensus-beating
narrowed net loss for fiscal 2022 on higher revenue, but cautioned
that the recovery remains fragile.
The budget airline expects to see "greater visibility in the
second quarter" as there has been "a strong recovery in bookings in
recent weeks" due to strong pent-up demand, but the company hasn't
issued any profit guidance for the year due to risks stemming from
the Covid-19 pandemic and the Ukraine war, Chief Financial Officer
Neil Sorahan said.
Mr. Sorahan said he expects the company to return to higher
fares during the summer period, above pre-pandemic levels, and for
traffic to grow to 165 million passengers in fiscal 2023 from 97
million in fiscal 2022, but noted almost zero visibility for the
second half.
For the year ended March 31, Ryanair posted a net loss of 240.8
million euros ($250.7 million) compared with a EUR1.01 billion net
loss the year before. A consensus estimate, based on a FactSet poll
of 11 analysts, had forecast a net loss of EUR356.5 million.
Revenue came in at EUR4.80 billion compared with EUR1.64 billion
the year before. A consensus estimate had put the figure at EUR4.9
billion, also taken from FactSet and based on 20 analysts'
forecasts.
The company said its load factor--a measure of how full a plane
is--stood at 82%, compared with 71% the previous financial year,
and that it expects it to reach 90% in fiscal 2023.
Ryanair cautioned, however, that the recovery remains fragile
due to the Omicron variant of the coronavirus and the war in
Ukraine, which hurt bookings over Christmas and Easter. The company
said its pricing for the first quarter of fiscal 2023 continued to
need stimulation--that is, prices were made more favorable to
consumers.
While bookings have improved in recent weeks, customers were
booking closer to the departure date than was typical at this time
of year, it said.
The company also said that while its fuel requirements were 80%
hedged, it expects the remaining 20% to give rise to some
unbudgeted cost increases.
Write to Anthony O. Goriainoff at
anthony.orunagoriainoff@dowjones.com
(END) Dow Jones Newswires
May 16, 2022 02:47 ET (06:47 GMT)
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