Ryanair’s record revenue in the second quarter of 2018, a turnaround driven by an expanding airline pandemic and cuts by rivals to capacity and fleet
The collapse of rival airlines during the pandemic and cuts by competitors to fleets and passenger capacity would also underpin Ryanair’s strong traffic numbers “hopefully at higher fares,” O’Leary said.
The result was more than double that of the comparable quarter in the previous year, and it was a new record for the company.
There were a record 37.4 million passengers in the quarter through December. That’s 7% higher than the same quarter in 2019 before the pandemic hit. O’Donoghue said the fares were higher for the quarter because of a strong Christmas and New Year period.
Even as several of its competitors went bankrupt or needed government-backed bail outs, it emerged from the coronaviruses stronger than ever. Over the summer, EasyJet and many of its competitors experienced staff shortages, which it was able to avoid.
Ryanair CEO Michael O’Leary said cuts by rivals to fleets and passenger capacity have created “enormous growth opportunities” for the Irish carrier, which has seen its market share “surge” across major European markets.
The strong earnings gave the company room to reverse pay cuts for most of its pilots and cabin crew. “These long-term pay agreements with the vast majority of our people have now delivered fully restored pay 28 months earlier than previously agreed,” O’Leary said.
The airline said its growth forecast was based on the delivery of 124 “Gamechanger” Boeing
(BA) 737 aircraft for the summer peak, but warned that some of those deliveries could “slip.”
Known for his forthright manner, the airline boss described Boeing management as “headless chickens” earlier this year in a scathing criticism of aircraft delays.
European Airlines, Airlines, and Travel Agents: First Year Plane for First-Class Far-inflight Travel and the Return of Asian Traffic
The low-cost European carrier told customers in an earnings statement on Monday to “book early” before cheaper tickets sell out. It reported a record profit in the last three months of the year after increasing airfares.
The return of Asian traffic to Europe will lead to demand for short-haul flights across Europe in the second half of the summer and through the Easter holiday, according to the company’s chief executive officer.
The Dublin-based airline has a good position despite other competitors going bankrupt and needing government help. The latest casualty was small UK regional carrier Flybe, which filed for bankruptcy and ceased trading over the weekend.
“We’re seeing very strong market share gains in most of our major markets like Italy, Poland, Ireland and Spain where competitors have removed significant capacity or are retreating from competition with us,” O’Leary said.