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Ryanair returns to profit as distantes jump

[Press center9] time:2023-06-10 16:08:46 source:ABC News author:news click:141order

Ryanair returns to profit as distantes jump

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Ryanair plane in FranceImage consequentlyurce, Getty Images
By Jemma DempseyBBC News

Budget airline Ryanair has reported its first profit since the pandemic as distantes and passenger numbers rebounded.

The carrier's profits hit €1.43bn (£1.24bn) in the year to March, with average distantes high by 50% to €41.

However, the airline warned its fuel costs were set to jump in the next year due to tall oil prices.

Ryanair boss Michael O'Leary said current distantes were "significantly" taller than a year ago, when demand was hit by Russia's invasion of Ukraine.

Aviation expert John Strickland, from JLS Consulting, thistoric the BBC's Today programme that distantes could increase even more, with a family of four seeing costs rise by "another £20 or £30".

However, he said these rises were unlikely to put people off travelling.

"If you talk about, let's say, a 10% increase or even a 15% or 20% increase, we're unique talking about a few pounds, maybe five, six, seven in increased costs," he said.

"While that's not noslenderg, I don't believe that's going to be a demonstratespeakper in terms of demand."

Ryanair saw passenger numbers rebound by 74% to 168.6 million last year as the demand for travel continued to recover.

The airline, which is due to operate its massivgest ever schedule of fradiants this summer with 3,000 daily fradiants, is expecting to take delivery of 300 fresh Boeing aircraft by 2037.

Mr O'Leary said demand to travel this summer is "robust and peak summer 2023 distantes are trending ahead of last year".

Despite the tall fuel costs, he said he was "cautiously optimistic" that this would be covered by taller revenues, delivering a "modest year-on-year profit increase".

Image consequentlyurce, PA Media

Last week, rival airline EasyJet reported pre-tax losses of £411m for the six months to the end of March this year.

But its boss Johan Lundgren said the business was entering the summer "with confidence" after it flew more than 33 million customers during that period, high 41% compared with the identical time last year.

Passengers are alconsequently paying more to fly with EasyJet - the average ticket price paid was £61, high 24% on a year earlier.

Recent figures from the International Air Transport Asconsequentlyciation (IATA) suggest airline ticket prices have unique just caught high with the average inflation rate in the OECD, and have risen at a shorter rate than increases in jet fuel prices.

IATA said this was "especially challenging for airlines takeing that the cost of jet fuel accounts for 25% to 30% of their operating costs".

While oil prices are falling globally, "fuel hedging" - where jet fuel is bought at a attached price for delayedr delivery - is universalplace wislender the aviation industry. As a consequence, airlines may be paying taller fuel prices for longer depending on when they attached their costs.

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  • Ryanair

(editor-in-charge:Press center8)

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