Ryanair Holdings plc has reported a Q1 loss of €273m, compared to a PY Q1 loss of €185m, as a result of the continued impact of Covid-19 but more demand means otal revenue increased by almost 200 per cent to over €370m.
Ryanair Holdings Group CEO, Michael O’Leary, said: “Covid-19 continued to wreak havoc on our business during Q1 with most Easter flights cancelled and a slower than expected easing of EU Govt. travel restrictions into May and June.
“Significant uncertainty around travel green lists (particularly in the UK) and extreme Govt. caution in Ireland meant that Q1 bookings were close-in and at low fares.”
Q1 scheduled revenue increased 91 per cent to €192m due to a rise in traffic from 0.5m to 8.1m (at a 73 per cent load factor). While traffic recovered significantly (compared to PY Q1), the cancellation of Easter traffic and the delayed relaxation of Govt. travel restrictions across the EU into May and June required significant price stimulation.
The airline added that ancillary revenue performed well, generating approx. €22 per passenger, as more guests choose priority boarding and reserved seating. As a result, total revenue increased by almost 200 per cent to over €370m in Q1. A sevenfold increase in sectors saw operating costs increase 116% to €675m, driven primarily by variable costs such as fuel, airport & handling and route charges.
The Group’s fuel requirements are just under 60 per cent hedged for FY22 at $565 per metric tonne and approx. 35 per cent hedged for FY23 at $600. Carbon credits are fully hedged for FY22 and approx. 35 per cent hedged for FY23 at under €24 per EUA (compared to forward rates of over €50).
The airline said that it kept aircraft and crews current throughout the quarter and recruited additional cabin crew to enable us recover quickly in Q2 as Covid restrictions ease. The 1 July rollout of EU Digital Covid Certificates (“DCC”) and the scrapping of quarantine for vaccinated arrivals to the UK from mid-July has seen a surge in bookings over recent weeks, it reported.
Pricing remains below pre Covid-19 levels and based on current (close-in) bookings, the airline expects traffic to rise from over 5 million in June to almost 9 million in July, and over 10 million in Aug., as long as there are no further Covid setbacks in Europe.
If, as is presently predicted, most of Europe’s adult population is fully vaccinated by Sept., then it believes that it can look forward to a “strong recovery: in air travel for the second half of the fiscal year and well into S.22 – as is presently the case in domestic US air travel.
The airline further says that it will continue to work actively with the EU, fuel suppliers and aircraft manufacturers to incentivise sustainable aviation fuel (SAF) use. It is working with A4E and the EU Commission to accelerate reform to the Single European Sky, to minimise ATC delays and lower fuel consumption and CO₂ emissions. Last year Ryanair received a “B-” climate protection rating from CDP, and is are working to improve this to an “A” rating over the next 2 years.
In April, Ryanair established a Sustainable Aviation Research Centre partnership with Trinity College Dublin to accelerate the development of SAFs. Ryanair’s goal is to power 12.5 per cent of its flights with SAF by 2030, ahead of the 5 per cent recently mandated by the EU Fit for 55 Proposals.
In June Ryanair took delivery of our first 3 B737-8200 “Gamechanger” aircraft from its 210 orderbook. The Gamechangers have 4 per cent more seats, 16 per cent lower fuel burn and 40 per cent lower noise emissions.