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Ryanair hopes to improve its operational outlook in the coming years with the plans to acquire some new jets from Boeing.
Swords, Ireland-based budget airline Ryanair Holdings plc (NASDAQ: RYAAY) has released its last quarterly report and outlook, posting a loss of €96 million ($107 million). The loss was better than the projected forecast of 101 million euros loss by a group of analysts. By way of comparison, Ryanair made a profit of 88 million Euros in the same quarter of 2019 and posted a massive loss of 306 million euros in 2020 as the coronavirus pandemic upturned profitability.
Ryanair’s Chief Executive Officer, Michael O’Leary says the outlook for the company is ‘hugely uncertain’ despite the obvious uptick in bookings in recent times. “While recent bookings have improved, following the easing of travel restrictions, the booking curve remains very late and close-in, so Q4 traffic requires significant price stimulation at lower prices,” O’Leary said.
Ryanair was able to provide the net loss guidance for its current fiscal year which ends in March, saying it expects a loss within the range of 250 million Euros to 450 million Euros.
“This outturn is hugely sensitive to any further positive or negative Covid-19 news flow and so we would caution all shareholders to expect further Covid disruptions before we here in Europe and the rest of the world can finally declare that the Covid crisis is behind us,” the company said.
Ryanair also impressed its investors with its overall revenue figure for the quarter. The company posted revenue of 1.47 billion Euros from 341.2 million euros in the year-ago period though significantly lower than the 1.52 billion Euros projected by FactSet analysts. The average airfare for the quarter was pegged at about 25 Euros, down 24% from the same quarter of last year.
Ryanair Future Operation Outlook
Ryanair is arguably the largest budget airline in Europe by the number of passengers when compared to its main competitors including easyJet Plc (LON: EZJ) and Wizz Air Holdings (LON: WIZZ) amongst others.
Ryanair hopes to improve its operational outlook in the coming years with the plans to acquire some new jets from Boeing Co (NYSE: BA). While the Irish company has stalled in its talks with Boeing for the aircraft supply, Reuters reported that the firm is still in talks with the American plane manufacturer.
Ryanair has the target of increasing its passenger count from 100 million it said it will likely end up with in this financial year to 165 million in the 12 months that will lead to March 2023. Many of Ryanair’s competitors are already cutting their capacity to accommodate for the reality being brought by the Omicron variant, and the company said it may cut its fare price in order to boost demand across the board.
As the company hopes to induce its demand subsequently, it also aims at reducing its debt profile which has topped 2 billion Euros over the next two years.