Ryanair takes off on the stock exchange and teases Boeing
Ryanair returns to profit in the first half of the year: net profit of 1.37 billion compared to the net loss of the previous year. But the low-cost airline also warned that delays in Boeing's delivery of the planes could impact its capacity next summer.
Ryanair runs on the Dublin Stock Exchange, after announcing record half-year earnings and raising guidance for the current year.
The low-cost airline recorded its largest after-tax profit for the first half of its financial year of € 1.371 billion, which is higher than its previous record in the same period in 2017 of 1.29. billions.
Last year, in the first half of the year, the Irish carrier had suffered a loss of 48 million.
The recovery in traffic and profitability is likely to continue to be "very strong" at least for the next three years, allowing the Irish airline, already Europe's largest in passenger numbers, to achieve significant gains in market share. CEO Michael O'Leary said commenting on the latest financial figures.
And the title of the Irish low cost company, number one in the sector in Europe for the number of passengers transported, around 13 marks an increase of 5.8% to 13.03 euros, reports Radiocor .
All the details.
TRIPLE REVENUES
The low-cost carrier recorded revenues for the six-month period of € 6.62 billion, three times the € 2.15 billion for the six months up to September 30 last year, when airlines were still affected by the restrictions of the coronavirus. The figure is 23% higher than in the same period in 2019.
RETURN TO PROFIT
Ryanair earned € 1.371 billion in the six months to the end of September. While this is just below the 1.385 billion forecast that emerged from a survey of some analysts, it is well above its previous record for the first half of the financial year of 1.29. billion euros recorded in September 2017. Ryanair expects an after-tax profit of between 1-1.2 billion euros for the year to 31 March, although this forecast remains "extremely dependent" on the absence of shocks negative.
PASSENGERS INCREASE
Ryanair announced it had carried 95 million passengers in six months, up from 39 million a year earlier. The company raised its traffic estimate for the 2022/2023 fiscal year to 168 million passengers from 166.5 million, a 13% increase over the pre-Covid period. CFO Neil Shoran also indicated that the number of passengers should rise to 185 million in the next fiscal year.
OPTIMISTIC O'LEARY
“Concerns about the impact of the recession and rising consumer price inflation on Ryanair's business model have been greatly exaggerated in recent months,” O'Leary said in a statement. “We expect these solid fundamentals to continue to support robust traffic and average rate growth for at least the next 18 months,” the CEO said.
For the full year, the company expects a profit of between 1.0 and 1.2 billion euros. "The recovery for the rest of the full year 2022/23 remains fragile and could still be affected by new variants of Covid or adverse geopolitical events such as Ukraine," said CEO Michael O'Leary. "However, early bookings remain strong during the peak holiday season," he added, commenting on the results.
LA STOCKATA IN BOEING
However, the airline's growth continues to be limited by the challenges Boeing faces in delivering the maxi order of 51 737 Max aircraft to Ryanair.
Ryanair is expected to receive a total of 51 aircraft before April, in time for the high summer season of 2023. O'Leary said there was a risk that "around 10" would not be delivered. Deliveries are key to realizing Ryanair's projections to carry 185 million passengers in the financial year through March 2024.
"As long as we have 45 to 46 aircraft by mid-June next year, that target is still achievable," O'Leary said. There were still "production challenges" for the plane, he acknowledged. "I think it is more likely that Boeing will run us short and we will end up with maybe 40 or 45 additional aircraft for next summer," said Ryanair's number one.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/smartcity/ryanair-decolla-in-borsa-sulla-scia-degli-utili-e-punzecchia-boeing/ on Mon, 07 Nov 2022 14:14:40 +0000.