Ryanair expects to incur a loss in the current quarter to March despite making an improved profit of €211 million in the three months to December 31.
The total achieved in the airline’s third quarter compared to a €88 million profit made in the equivalent pre-Covid period in 2019.
Europe’s largest low fares carrier pointed to strong pent-up demand over the October half-term and Christmas and new year which “stimulated strong traffic and fares” across all markets.
Passenger numbers rose by almost a quarter year-on-year to 31.1 million with fares up 14% on pre-Covid levels, helping revenue increase by 57% to €2.31 billion.
However, group chief executive Michale O’Leary said: “Ryanair expects Q4 to be loss making due to the absence of Easter from March.”
Total annual passenger numbers are expected to total 168 million with O’Leary reiterating upgraded profit guidance of up to €1.425 billion – a figure which he cautioned remained “heavily dependent” upon avoiding adverse events such as Covid and the war in Ukraine.
He confirmed that staff pay cuts imposed during the pandemic had been restored to more than 95% of crew more than two years early.
O’Leary said: “At the outset of the Covid-19 pandemic, Ryanair and its union partners negotiated agreements to protect crew jobs via temporary pay cuts which were to be gradually restored from 2022 to 2025.
“These agreements successfully ensured crew jobs security through the two year Covid pandemic, as Ryanair maintained not only the jobs but also the licences of our crews.
“This investment positioned Ryanair as the most prepared airline for the post-Covid traffic recovery.
“By keeping our crews current, and recruiting early, Ryanair avoided the crew shortages which caused so many competitor cancellations and disruptions in summer ’22.
“In November, following a strong H1 [first half] performance, Ryanair agreed to fully restore pay 28 months early for over 95% of crews covered by new long-term pay agreements in the December payroll.
“We remain available to conclude agreements on similar terms with the tiny minority of unions representing less than 5% of our crews who have so far failed to reach agreement on accelerated pay restoration. “
He pointed to resourcing for the summer peak being “well advanced” with more than 1,000 cadets enrolled in pilot training schools across its group of airlines and new cabin crew courses underway as the company targets 225 million passengers a year by 2025.
Ryanair secured strong market share gains in key EU markets such as Italy, Poland, Ireland and Spain as it operated 112% of pre-Covid capacity during the first nine months of its financial year.
O’Leary added: “Our routes team continue to negotiate traffic recovery growth deals with airport partners as competitors struggle to recover capacity – down as much as 20% this winter – and grapple with rising costs.
“With Asian tourists now returning and a strong US dollar encouraging Americans to explore Europe, we’re seeing robust demand for Easter and summer 2023 flights.”