Ryanair reports profit of 1.37 billion euros in the first half of 2022

Ryanair, Europe’s largest low-cost airline, reported half-year profits of 1.37 billion euros between January and June. In a statement, the company highlighted the consistent recovery of its activity after going through the restrictions imposed by the pandemic and despite the current situation in Ukraine.

Ryanair’s key operational and financial results in the first half of the year

Despite a difficult backdrop of rising costs across the board, Ryanair reported a net profit of 170 million pounds (204 million dollars) between January and March. It was the first profitable quarter for the company since the start of the pandemic.
Ryanair carried a total of 95.1 million passengers during the 2022 summer season. The figure represents an 11% increase on the last recorded figure before the start of the pandemic. The company operated at 115% of its 2019 capacity.
On average, it completed a total of more than three thousand flights per day in the first half of 2022.
The average occupancy rate reached 94%.
Between January and June, air fares increased by 7% compared to pre-pandemic prices.
Operating costs increased by 126% to 4.98 billion euros (including a 205% increase in fuel to 2.18 billion).
In the first half of the year, Ryanair opened 15 new hubs and 770 new routes.
The company took delivery of 73 Boeing 737 MAX 8200 «Gamechanger» aircraft. By the end of the first half of 2023, it expects to add a further 51, bringing the total number of such aircraft in operation to 124. Michael O’Leary, Ryanair’s CEO, noted that these aircraft offer 4% more seats per flight, but consume 16% less fuel and reduce noise emissions by up to 40%.
Net debt fell to 500 million euros as of 30 September. At the end of March, the company had reported a net debt of 1.45 billion euros.
Ryanair finalised new commercial agreements for sustainable aviation fuel (SAF) production and expects to power 12.5% of its flights with this kind of fuel by 2030.
The company took delivery of the first of eight full flight simulators (FFS), produced by CAE, with which it plans to expand crew training facilities over the next three years. According to Ryanair, locations for two further new training centres will be selected in the near future.

Outlook for the near future

Ryanair reported that the fuel forecast for the 2023 financial year is already 81% covered, at an average of 67.000 dollars. On the other hand, the 2024 forecast is 50% covered, at an average of 93.000 dollars. According to the company, investment in new aircraft is also covered, at 1.24 euros to the dollar, until fiscal year 2026.

Outstanding deliveries of Boeing 737 MAX 8200 «Gamechanger» aircraft will continue to be delayed. In that regard, Ryanair said its growth «is being hampered» by the manufacturer’s «inabilityinability to meet its delivery schedule». The company reported that it expects to receive only ten to twelve aircraft before Christmas, out of a total of 21 stipulated.

Ryanair said the recovery could be affected next year, especially by geopolitical events stemming from the war in Ukraine. However, future bookings, both in terms of traffic and fares, remain solid for the end of 2022.