Ryanair posted a €273m loss for the quarter between April and June
Ryanair (LON:RYA) confirmed a sharp rise in bookings while the low budget airline raised its forecast for passenger numbers over the coming year as travel restrictions are being eased across the continent.
However, the Irish company posted a €273m loss for the quarter between April and June, as lockdowns meant the majority of flights were cancelled amid ongoing caution.
A year ago, Ryanair recorded a €185m loss during the same Q1 period.
Ryanair carried 8.1m passenger during Q1, up from 0.5m in the same period in 2020, when the pandemic was well and truly underway.
The airline was faced with soaring operating costs of €675m, while it managed to bring its revenue up to €370m.
The low budget airline said its mini-recovery was thanks to vaccinations, as well as the easing of isolation rules for travellers who have taken the vaccine, and the EU’s digital travel pass which the EU introduced at the beginning go July.
These factors have given Michael O’Leary, the chief executive of Ryanair, a degree of confidence over a sustained recovery for the industry, after the pandemic continued to test his company throughout the pandemic.
With a surge in bookings coming from continental Europe, Ryanair will increase its number of flights in operation during the end of summer.
While the airline is still facing challenging circumstances, it suggested that it will end the fiscal year “somewhere between a small loss and breakeven” as restrictions are there to stay for now.
Danni Hewson, financial analyst at AJ Bell, added:
“Could a last minute rush rescue Ryanair’s year? While the summer has been heavily affected by the continued strict restrictions on travel throughout Europe, the company is seeing notably higher bookings both for late summer holiday bookings and the winter,” Hewson said.
“This demonstrates how resilient demand for foreign holidays remains, particularly among the fully vaccinated cohort which now have a little more freedom to travel.”
“If people are booking now given all the uncertainty and hassle involved in flying then you could imagine a more rapid ascent when, hopefully, we finally emerge from the pandemic.”
The Ryanair share price is up by 3.56% during the morning session on Monday.
