Ryanair made a profit of 170 million euros (174 million dollars) in the first quarter of its fiscal year, from April to June. The Irish budget flyer will announce this on Wednesday. However, Ryanair is cautious in its outlook after the usual summer crowds.
In the first quarter of 2021, when travel was still limited due to the corona pandemic, Ryanair recorded a loss of 273 million euros. Earnings in the first quarter of this fiscal year are higher than expected. Analysts consulted by financial news agency Bloomberg expected a profit of 150 million euros. Before the corona pandemic, in 2019-2020, the profit was still 243 million euros.
The Irish low-cost airline says there are clear signs of “pent-up demand,” with bookings closer to the travel date than before the pandemic. Ryanair says it has “no visibility at all” into the second half of the financial year and that there is a risk of loss. However, Ryanair still expects to carry 165 million passengers this year. So it wants to fill planes at low rates. “The winter recovery is fragile and subject to how the news around Covid-19 and Ukraine evolves,” said CFO Neil Sorahan.
Ryanair also says its strategy of negotiating pay cuts with unions in the corona crisis is now paying off. The company says it has the necessary staff to cope with the recovery, unlike the competition, which let many employees leave.
Ryanair is currently struggling with strikes by the same staff demanding wage increases after the surrenders. The airline says it has been negotiating with unions since the spring to bring wages back to normal as the recovery progresses. Ryanair argues that it has already reached agreements with the trade unions.
Those unions would represent 80 percent of its pilots and 70 percent of its cabin crew. Ryanair expects to reach an agreement with the other unions soon.