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HomeTop Business NewsRyanair's Profits Soar High as Summer Fares Outdo Cost Hikes!

Ryanair’s Profits Soar High as Summer Fares Outdo Cost Hikes!


Ryanair Predicted to Earn €1.87bn in Profits for Financial Year

Ryanair, the Irish low-cost airline, is expected to earn profits of €1.87bn in its financial year, according to a leading aviation analyst. Goodbody’s Mark Simpson has increased the broker’s after-tax profit forecast for Ryanair for the financial year, which runs to the end of March in 2024, from €1.66bn to €1.87bn. This increase is due to a 45% rise in early summer fares and a high demand for air travel, which have outpaced increases in fuel and crew costs. Goodbody has also predicted that Ryanair will post profits of €645m for its first quarter, which began in April and ends in June. This forecast is “well ahead of our previous €432m forecast,” according to Mr Simpson.

The broker has forecast that average fares during the first quarter will have risen by 45% from levels of early summer last year, which will boost forecasts for the airline’s full-year profits. Despite “key headwinds” from higher staff and route costs, Mr Simpson believes that Ryanair’s profits will continue to grow. Ryanair has set out its ambition to expand in central and eastern Europe and forecasts a huge surge in passenger numbers in the region, according to the airline’s manager for the region.

Alicja Wojcik-Golebiowska, the CEE and Baltics country manager for Ryanair, told Reuters that the airline wants to focus on expanding in the region. “We see that this is going to be a large part of our upcoming expansion,” she said. While Poland has long been one of Ryanair’s key markets, Ms Wojcik-Golebiowska said the company was now redoubling its focus on other countries in the region.

Ryanair’s expansion in central and eastern Europe will see the airline compete with Wizz Air, which is also targeting the region. However, Ryanair’s manager for the region said that the airline is not concerned about the competition. “We are very confident in our product and our pricing strategy,” Ms Wojcik-Golebiowska said. “We are very competitive in this region.”

Ryanair has also announced that it will begin operating flights from Stockholm’s Arlanda Airport in October. The airline will offer flights to five destinations, including London, Barcelona, and Rome. Ryanair’s entry into the Swedish market is expected to shake up competition among airlines in the country.

In addition to expanding in central and eastern Europe, Ryanair is also planning to increase its presence in Italy. The airline has announced that it will open a new base in Naples in December, which will be its sixth base in Italy. Ryanair will offer 18 routes from Naples, including flights to Barcelona, Brussels, and Paris.

Ryanair’s expansion plans come as the airline industry struggles to recover from the COVID-19 pandemic. While many airlines have been forced to cut routes and reduce capacity, Ryanair has been able to weather the storm thanks to its low-cost business model. The airline has also been able to take advantage of the demand for air travel as more people become vaccinated against COVID-19.

Overall, Ryanair’s expansion plans and strong financial performance are a positive sign for the airline industry as it looks to recover from the pandemic. While there are still challenges ahead, the airline’s ability to adapt and grow in the face of adversity is a testament to its resilience and strength as a company.

Thomas Lyons
Thomas Lyons
Thomas, the founder and chief editor at Top Rated, harbours a deep-seated passion for business, news, and product reviews. His thirst for knowledge and experience has led him on a journey across the length and breadth of the country, enabling him to garner a wealth of insight. At TopRated.ie, his sole aim is to deliver meticulously researched news and provide impartial reviews of fact checked Irish companies, thus helping readers make well-informed decisions.


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