Ryanair Reports Fiscal Third Quarter Net Loss of €96 Million
Ryanair has reported a fiscal third quarter net loss of €96 million on a year-over-year increase in revenue of 331 percent to €1.47 billion, compared to a third quarter FY2020 net loss of €321 million.
On Monday (January 31, 2022), Ryanair Holdings reported their fiscal third quarter results for the period ending December 31, 2021. The carrier reported a net loss of €96 million on a year-over-year increase in revenue of 331 percent to €1.47 billion. Ryanair’s Q3 loss represents a substantial improvement compared to a loss €321 million for the quarter ending December 31, 2020. During the quarter, the airline’s traffic improved year-over-year by 286 percent to 31.1 million passengers, versus 8.1 million during the same period last year. The company also repaid a UK CCFF £600 million loan five months early in October 2021. Additionally, Ryanair received 41 Boeing 737-8200s through December 31st, and announced 720 new routes and 15 new bases for FY22/23.
In Monday’s announcement, Ryanair’s Michael O’Leary, said in part,
“…Q3 scheduled revenues increased 345% to €0.79bn as traffic recovered strongly from 8.1m to 31.1m guests (at an 84% load factor). Despite a strong start to Q3, especially the school’s mid-term break in Oct., the Omicron variant, and return of travel restrictions in early Dec., significantly damaged (higher yielding) close-in Christmas & New Year bookings. Ave. fares in Q3 were just €25 (down 24% on the same quarter pre Covid). Ancillary revenue delivered a solid performance, generating €22 per passenger (+8%), as guests choose priority boarding and reserved seating. Total revenues increased by over 330% to €1.47bn in Q3.
“While sectors more than doubled (+220%) and traffic rose 286%, operating costs increased by just 136% to €1.59bn, driven primarily by lower variable costs such as airport & handling, route charges and improved fuel burn as more Gamechangers enter the fleet (offset by the higher cost of jet fuel). Lower costs, coupled with rising load factors, saw unit cost per passenger in Q3 (ex-fuel) reduce to €32, an excellent performance.
“Our fuel requirements are almost fully hedged for Q4 FY22 (over 60% jet swaps at $580 per metric tonne, with caps hedging the balance at $750). H1 FY23 is 80% hedged (60% jet swaps at $620 and 20% caps at $715) and H2 FY23 is 70% hedged at $640. Carbon credits are fully hedged for FY22 and 80% hedged for FY23 at €24 and €45 per EUA respectively (well below the current spot price of c.€85). Ryanair’s very strong and sensible hedging policy will deliver significant savings for all our customers and shareholders at a time when many airline competitors have unwisely reduced or abandoned sensible hedging strategies…”
At December 31, 2021, Ryanair had approximately €3.0 billion in cash, and 90 percent of their Boeing 737 fleet was unencumbered. During the global COVID-19 pandemic, the company’s net debt has risen to over €2.0 billion, which Ryanair plans on reducing to zero as quickly as possible over the next two years. Ryanair’s FY22 net loss guidance remains within a wider than normal range of €250 million to €450 million.