Ryanair Reports FY 2022 Net Loss of €355 Million On Revenue Increase to €4.8 Billion
Ryanair has reported a full year net loss of €355 million on a 193 percent year-over-year increase in revenue to €4.8 billion. The carrier’s year-end net debt fell to €1.45 billion from €2.28 billion at the end of the prior fiscal year.
On Monday (May 16, 2022), Ryanair reported their full fiscal year 2022 financial results for the period ending March 31, 2022. The Group reported a FY22 net loss of €355 million on a193 percent year-over-year increase in revenue to €4.8 billion. Ryanair maintains one of the strongest balance sheets in the industry with a BBB (stable) credit rating from both S&P and Fitch. At the end of fiscal year 2022, Ryanair’s total net debt fell to €1.45 billion compared to €2.28 billion at the end of FY21. Additionally, over 90 percent of the airline’s Boeing 737 fleet of aircraft are unencumbered. Over the next two years, Ryanair plans on reducing their net debt to zero, despite peak CAPEX over the same period.
In Monday’s announcment, Ryanair’s Michael O’Leary, said in part,
“…Over the past year our New Route team continued to work with airport partners to negotiate lower costs, Covid recovery incentives and growth deals. In addition to 15 new bases (Agadir, Billund, Chania, Corfu, Cork, Madeira, Newcastle, Nuremberg, Riga, Stockholm, Venice (Marco-Polo), Venice (Treviso), Turin, Zadar & Zagreb), 770 new routes were announced and low-cost long term growth deals were extended at London Stansted (to 2028), Milan Bergamo (2028), Manchester (2028), East Midlands (2028) and Brussels Charleroi (2030). Our Group has doubled its capacity in Rome (FCO), Lisbon, Vienna and has based a record 33 aircraft in Dublin for S.22, launching our biggest ever Dublin summer schedule.
“The Covid-19 crisis accelerated the collapse of many European airlines including Flybe, Norwegian, Germanwings, Level, Stobart and material capacity cuts at many others including Alitalia (now ITA), TAP, LOT, SAS, etc. The tsunami of State Aid from EU Govts. to their insolvent flag carriers (Alitalia, Air France/KLM, Iberia, LOT, Lufthansa, SAS, TAP and others) will distort EU competition and prop up high cost, inefficient, flag carriers for some years. Ryanair was one of very few airlines during the Covid crisis to place significant new aircraft orders, to expand our airport partnerships, secure lower costs so that we can pass on even lower fares on many new routes during the post Covid recovery.
“Over the past 2 years, Ryanair’s market share has increased markedly across Europe. Notable examples include Italy where our market share increased from c.30% (pre-Covid) to almost 40% this summer. Market share in Vienna has jumped from 8% (S.19) to 21% (S.22). In Budapest (a competitor’s home base) we have gone from 18% to over 30% (and market leadership), Ireland rose from 49% to over 55%, Sweden doubled to 12% and Poland has grown from 25% to 35%. Up to March 2022, Ryanair has taken delivery of 61 B737-8200 “Gamechanger” aircraft and we hope to increase this to over 70 new aircraft for peak S.22 (more than the 65 previously targeted) to facilitate S.22 recovery and growth opportunities.
“This Summer, our capacity will grow to approx. 115% of S.19 (pre-Covid) levels although we expect to fill these flights with lower fares and at higher fuel costs than pre-Covid. Our new, fuel efficient, “Gamechangers” widen the cost gap between Ryanair and all other European airlines for the next decade. Their operational reliability, lower fuel consumption and CO₂ emissions have so far exceeded expectations, with very positive feedback from both passengers and our crews. Based on our 210 order book and available fleet capacity, the Ryanair Group plans to accelerate traffic growth over the next 5 years. From a pre-Covid figure of 149m, we now expect to grow (by 50%) to over 225m guests p.a. by FY26…”
“…FY22 scheduled revenues increased 156% to €2.65bn. While traffic recovered strongly from 27.5m to 97.1m guests, the delayed relaxation of EU Covid-19 travel restrictions until July 2021 (Oct. in the case of the UK Govt.), combined with the damaging impact of the Omicron variant and Russia’s invasion of Ukraine in H2, meant that fares required significant price stimulation. Ave. fares in FY22 were down 27% to just €27. Ancillary revenue delivered a solid performance, generating more than €22 per passenger as traffic recovered and guests increasingly chose priority boarding and reserved seating. Total revenues increased by over 190% to €4.80bn.
“While sectors increased almost 200% and traffic rose 253%, operating costs rose just 113% to €5.27bn (incl. a notable 237% increase in fuel to €1.83bn), driven primarily by lower variable costs such as airport & handling, route charges and lower fuel burn as 61xB737 Gamechangers entered the fleet (offset by the higher cost jet fuel). Lower costs, coupled with rising load factors, saw FY22 (ex-fuel) unit cost per passenger reduce to €35.
“Our FY23 fuel needs are approx. 80% hedged (65% jet swaps at c.$63bbl and 15% caps at c.$78bbl). Almost 10% of Ryanair’s H1 FY24 fuel requirements are hedged at c.$76bbl (via jet swaps). Carbon credits are 85% hedged for FY23 at €53 (well below the current spot price of almost €90). This very strong fuel hedge position gives Ryanair a considerable competitive advantage for the next 12 months and will enable us to grow market share strongly over the coming year…”
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 400 Boeing 737 Family aircraft and 20 Airbus A320s. Currently, the low-cost carrier has more than 100 Boeing 737-8200s on order, and will grow their fleet to 600+ aircraft in the coming years. 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.”