Market News
Ryanair warns of rise in ticket prices as it reports record profits - YAHOO FINANCE
Ryanair (RYA.IR) has forecast higher airfare costs for passengers, after the Dublin-based firm reported a net profit of £185m ($229m/€210.6m) due to increased bookings over the Christmas and New Year period.
The company's chief financial officer Neil Sorahan said Ryanair will "deliver record profits in the current financial year and we would expect to continue to grow profitably into next year and beyond".
However, "based on current booking profiles, we think that fares will rise into Easter and the summer", he said.
In Monday's third quarter results, the largest European low-cost carrier expressed confidence for the future and raised its annual profit outlook to a range of £1.16m to £1.25m as sales rose 57% to £2.03bn in the fourth quarter of last year.
Profits for the period reached £185m, compared to a £84m loss the previous year.
Strong pent-up travel demand over the October, mid-term and peak Christmas and New Year holiday season drove profits at the aviation firm.
Ryanair's CEO Michael O'Leary predicted a surge in travel demand in Europe due to American and Asian tourists over Easter and summer 2023.
The low-cost airline reported record profits despite the economic downturn and early bookings indicate a "strong" summer ahead, according to O'Leary.
Ryanair added that they predict no adverse impact from COVID or the war in Ukraine and said that a strong US dollar and the lifting of border restrictions will entice long-haul travelers to book European trips.
