Air fares flying high on demand

STEEP CLIMB FOR RYANAIR PROFIT

RYANAIR is urging holidaymakers to book their summer trips early as “robust demand” is driving up fares with passenger numbers hitting an all-time high.

Yesterday, the budget airline reported a full-year profit of €1.43billion (£1.24bn) in the year to March 31, just below its 2018 record of €1.45bn, as it continues to recover from pandemic lockdowns.

This is the firm’s first profit since the pandemic, after posting a net loss of €355million in its previous financial year.

Total passenger numbers hit an all-time high of 168.6m, up 74%, smashing its pre-pandemic record of 149m.

Chief executive Michael O’Leary said: “Over the last year we have seen a very strong post-Covid traffic recovery. People have been locked up for two years and wanted to go back to travelling.”

O’Leary said summer 2023 forward bookings and air fares are “strong and we continue to urge all customers to book early to avoid rising ‘close-in’ prices”.

He said Ryanair said it would be running its “largest ever schedule”, with 3,000 flights a day over summer.

Fares have climbed 10% on pre-Covid levels due to surging fuel costs and this will continue in 2024. Fares are also being pushed up by a lack of available seats after many airlines went bust or downsized during the pandemic.

Victoria Scholar, head of investment at Interactive Investor, said: “The low-cost carrier has enjoyed an impressive annual performance thanks to a recovery in demand and fortuitous fuel hedging.”

Ryanair shares have risen by around 30% so far this year.