Ryanair posted its first spring profit since before the coronavirus pandemic as passenger numbers topped pre-Covid-19 levels, but warned of the risk of possible new virus variants in the autumn.
The Irish company made a pre-tax profit of €203m (£173m) between April and June, compared with a hefty loss of €325m in the same period a year earlier . It said the number of passengers had increased to 45.5 million, up 9% from 2019.
Airlines suffered years of heavy losses during the pandemic, but the end of tighter travel restrictions in most major markets in Europe and North America has led to an increase in travel.
The upswing has been so rapid that many airlines and airports have struggled to keep up, leading to long queues, delays, flight cancellations and lost luggage.
Ryanair chief executive Michael O’Leary described the recovery as “very strong but still fragile”, with evidence of pent-up demand, but added that people were booking less than before the pandemic.
He warned that the possible emergence of a new variant of the coronavirus, such as Omicron, which destroyed an earlier recovery in traffic, meant that the airline could not forecast profits for the year.
Ryanair also said its fuel costs had risen more than sixfold during the year. Its total bill for the quarter came to €1 billion, but Neil Sorahan, Ryanair’s chief financial officer, said it was covered by hedges that allow it to buy fuel at around $60 a barrel, significantly below spot prices in market and inferior to competitors.
Ryanair added that the delivery of new Boeing 737 Max aircraft would reduce its fuel bills as well as emissions from each aircraft. Carbon emissions from aviation are expected to rise this year after two years of depressed demand.
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Sorahan criticized airports, which he said needed to do “better next year” to avoid the delays and disruptions that have plagued the industry.
“They had a job to do, which was to make sure they had enough managers and security staff,” Sorohan told BBC Radio 4’s Today programme. “They had the timetables a month in advance.”
O’Leary said the airline had been “vindicated” in its decision to cut wages rather than jobs during the coronavirus lockdowns as airlines, airports and service companies have struggled to attract staff