Ryanair narrows loss forecast, traffic tops pre-pandemic levels

[LONDON] Ryanair Holdings has narrowed the range for its annual loss, as it turns the page on a year disrupted by the coronavirus pandemic, as its passenger numbers topped pre-pandemic levels for the first time ahead of the key Easter holiday period.

The loss for the year ended Mar 31 will be between 350 million euros and 400 million euros (US$387 million to US$440 million) before special items, the Dublin-based carrier - Europe's biggest low-cost airline - said in a statement on Monday.

Ryanair said in January that the shortfall would be between 250 million and 450 million euros. Last week, chief executive officer Michael O'Leary reiterated that range, saying the figure would fall toward the middle.

Shares of Ryanair traded 0.6 per cent higher just after 8 am in London, paring the decline this year to 11 per cent.

On its passenger numbers, Ryanair said it had flown 11.2 million people last month compared to just 0.5 million during lockdown a year ago and 10.9 million in March 2019, the first time it had carried more passengers in a given month than in the corresponding pre-pandemic period.

And this factored in the impact of Russia's invasion of Ukraine, which caused the cancellation of 2,000 flights and the ongoing suspension of activity in Ukraine, where it is one of the largest foreign operators. While full-year traffic topped 97 million passengers, up from 27.5 million in the previous 12 months, it was still well below a pre-pandemic peak of 149 million.

In an interview last Thursday (Mar 31), O'Leary presented an optimistic outlook for the next 12 months, saying that Ryanair will target at least 1 billion euros in net income for the new fiscal year, driven by hedges on 80 per cent of its fuel needs and pent-up demand for travel as Covid curbs are lifted.

Traffic for fiscal 2022 reached 97 million passengers, up from 27.5 million in the previous year, but still only two-thirds of the pre-pandemic level. The company plans to report annual results on May 16.

Rival discounter Wizz Air Holdings' 12-month passenger tally totalled 27 million. Its March load factor was 86 per cent, compared with 87 per cent at Ryanair.

Bernstein analyst Alex Irving said in a note that the occupancy figures are "particularly encouraging" in light of disruption from the war in Ukraine. Wizz shares traded up 0.6 per cent.

BLOOMBERG, REUTERS