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Losses narrow to €48m at Ryanair on the back of increasing passenger numbers

Ryanair has seen its losses narrow in the six months to September 30 on the back of increasing passenger numbers.

he airline reported a net loss of €48m in the six-month period, down from a loss of €411m in the corresponding period last year.

Passenger traffic rebounded by 128pc to 39.1 million from 17.1 million in the first half of its financial year 2022.

The airline’s load factor – how full airlines are – stood at 79pc. 

Revenue for the six months was €2.15bn, up 83pc year-on-year from €1.18bn, according to interim results from the group.

The airline said the Covid disruption of Easter traffic, as well as the delayed relaxation of European Union travel restrictions into May/June, the uncertainty in the UK around travel requirements and the close-in nature of bookings required price stimulation – resulting in average fares of just €33, down 30pc on the first half of last year.

However, ancillary revenue continued its “strong” performance, generating over €22.50 per passenger, as guests choose priority boarding and reserved seating.

During the six month period the airline saw its operating costs increased by 63pc to €2.20bn – despite traffic more than doubling – driven primarily by lower variable costs such as aircraft, airport and handling, route charges and fuel.

Looking forward, the company said the outlook for pricing and yields for this winter “will be challenging.”

Traffic recovery “will require continuing price stimulation.” This, along with rising costs for the small unhedged balance of its fuel needs, means that visibility for the remainder of its financial year 2022 “is very limited.”

Therefore, the airline said, it is difficult to provide meaningful guidance, however it expects to record a loss of between €100m to €200m.

The company said that trading on the London Stock Exchange (LSE) as a percentage of overall trading volume in Ryanair’s ordinary shares has reduced “materially” during 2021.

The airline, which has its primary listing on Euronext Dublin, said the board “is now considering the merits of retaining the Standard listing on the LSE.”

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