Ryanair Reports Fiscal Third Quarter Net Profit of €211 Million or €0.18 per Share
Ryanair has reported a fiscal third quarter net profit of €211 million or €0.18 per share on a 36 percent year-over-year increase in revenue to €2.15 billion. At December 31, 2022, the carrier had $4.07 billion in gross cash.
On Monday (January 30, 2022), Ryanair reported their fiscal third quarter financial results for the period ending December 31, 2022. The carrier reported a third quarter net profit of €211 million or €0.18 per share on a 36 percent increase in revenue to €2.15 billion. At December 31, 2022, Ryanair had one of the strongest balance sheets in the industry with a BBB (positive) credit rating (S&P and Fitch) and gross cash of €4.07 billion in gross cash. At the end of the third fiscal quarter, Ryanair had taken delivery of 84 Boeing 737-8200 ‘Gamechanger’ aircraft, expanding their fleet to 523 aircraft. The carrier also announced 230 new routes for FY24 for a total of 2,450 routes.
In Monday’s announcement, Ryanair’s Michael O’Leary, said in part,
“Our investment in new fuel efficient, greener, B737 aircraft continued in Q3 with our Gamechanger fleet (4% more seats with 16% less fuel) increasing by 11 to 84 aircraft. In Q3 we began to retro-fit scimitar winglets on our 409 B737-800NG owned fleet (a $200m+ investment) which will further reduce fuel burn by 1.5%...
“…Ryanair secured strong market share gains in key EU markets as we operated 112% of our pre-Covid capacity during the first 9 months of FY23. Most notable gains were in Italy (from 26% to 40%), Poland (27% to 38%), Ireland (49% to 58%) and Spain (21% to 23%). Our Routes team continue to negotiate traffic recovery growth deals with airport partners as competitors struggle to recover capacity (down as much as 20% this winter) and grapple with rising costs. Up to the end of Q3, Ryanair has taken delivery of 84 B737 Gamechangers and we’re planning FY24 growth based on 124 new aircraft for peak S.23, although there is a risk (despite recent Boeing production improvements) that some of our Gamechanger deliveries could slip. Over 230 new routes (total 2,450 with 3,200 daily flights) have been announced for FY24. With Asian tourists now returning and a strong US$ encouraging Americans to explore Europe, we’re seeing robust demand for Easter and summer 2023 flights. We therefore encourage customers to book early on www.ryanair.com to secure the lowest fares as we expect these will sell out early.
“Over the past 3 years, numerous airlines went bankrupt and many legacy carriers (incl. Alitalia, TAP, SAS and LOT) significantly cut their fleets and passenger capacity, while racking up multi-billion-euro State Aid packages. These structural capacity reductions have created enormous growth opportunities for Ryanair. These opportunities, combined with our reliability, lowest (ex-fuel) unit costs, strong fuel and US$ hedges, fleet ownership and strong balance sheet, ensures that the Group is well placed to grow profitability and traffic to 225m p.a. by FY26.
“Q3 scheduled revenue increased almost 85% to €1.45bn due to strong travel demand at higher fares (+14% over pre-Covid), especially during the Oct. mid-term and the peak Christmas/New Year holiday season. Ancillary revenue delivered another solid performance, generating over €22.50 per passenger. Total Q3 revenue rose 57% to €2.31bn. Operating costs increased 36% to €2.15bn, driven by higher fuel costs (+52% to €0.90bn, offset by improved fuel burn as more Gamechangers enter the fleet), crew pay restoration and 24% traffic growth. Ex-fuel operating costs rose by only 26%, marginally ahead of traffic and year to date unit costs (ex-fuel) are just €30 per passenger. Other income/expenses benefitted from a weaker US$ in Q3 reversing H1’s negative currency charge.
“Our jet fuel requirements are 88% hedged at approx. $71bbl for the remainder of FY23 and H1 FY24 cover has recently increased to 60% at $90bbl (FY24: 57% at $92bbl). Forex is also well hedged with over 80% of Q4 FY23 €/$ opex hedged at just under 1.15 and approx. 60% of FY24 at 1.08. Our Boeing order book is fully hedged at €/$ 1.24 out to FY26. This strong hedge position helps insulate Ryanair from spikes in fuel prices and gives our Group airlines a significant cost advantage over our EU competitors for the remainder of FY23 and into FY24…”
Ryanair's Fiscal Third Quarter Financial Highlights - Courtesy Ryanair
Ryanair Holdings, plc is Europe’s largest airline conglomerate and the parent company of Buzz, Lauda, Malta Air, and Ryanair DAC. The airline carries over 150 million passengers annually with more than 2,500 daily departures. Ryanair serves over 200 destinations in 40 countries with a fleet of over 500 aircraft including Boeing 737NGs, Boeing 737-8200 Gamechangers and Airbus A320s with Lauda. Currently, the low-cost carrier has nearly 150 Boeing 737-8200s on order, and will grow their fleet to 600+ aircraft by 2026. Ryanair has maintained a stellar safety record for nearly 40 years and prides itself on being “Europe’s greenest cleanest airline group,” promising customers a reduction in CO2 emissions of up to 50%, versus the “Big 4 EU major airlines.” The company continues to grow across Europe and plans on carrying 225 million passengers annually by 2026.