Business

Ryanair swings back to profit but warns of 'fragile' market

Ryanair commercial director Jason McGuinness was in Belfast at the start of July to announce that the Dublin carrier is returning to Belfast International from summer 2023 with 12 new routes. Picture: Hugh Russell
Ryanair commercial director Jason McGuinness was in Belfast at the start of July to announce that the Dublin carrier is returning to Belfast International from summer 2023 with 12 new routes. Picture: Hugh Russell Ryanair commercial director Jason McGuinness was in Belfast at the start of July to announce that the Dublin carrier is returning to Belfast International from summer 2023 with 12 new routes. Picture: Hugh Russell

BUDGET carrier Ryanair has swung to a first-quarter profit despite airport disruption and a hit from the Ukraine war, but warned that the full-year outlook is unpredictable in a "fragile" market.

The Dublin-based airline reported profits after tax of €170 million (£145 million) for the three months to June 30 against net losses of €273 million (£233 million) a year ago as passenger numbers rebounded to 45.5 million - some 9 per cent ahead of pre-Covid levels.

But profits were still "well below" levels seen in the same quarter before the pandemic in spite of the bounceback, according to the group.

Ryanair, which earlier this month confirmed that it will return to Belfast International Airport in 2023 with 12 routes, said the Ukraine conflict badly damaged Easter bookings and fares, which fell 4 per cent against the same quarter pre-Covid.

The group also said it is being hampered by unprecedented air traffic control and airport handling disruption, but hopes to run "almost 100 per cent" of its scheduled flights and minimise delays.

Ryanair warned too that rocketing oil prices are set to push up its full-year fuel bill, affecting the 20 per cent of its fuel costs that have not been secured in advance.

Chief executive Michael O'Leary said: "Our business, our schedules and our customers are being disrupted by unprecedented air traffic control and airport handling delays, but we remain confident that we can operate almost 100 per cent of our scheduled flights, while minimising delays and disruptions for our guests and their families."

He added: "Our experience with Omicron last November, and the Ukraine invasion in February, shows how fragile the air travel market remains, and the strength of any recovery will be hugely dependent upon there being no adverse or unexpected developments over the remainder of 2022-23."

Like its rivals, the group has been battling against the threat of strike action from staff over pay after it cut salaries during the pandemic, but said it has agreed deals with unions representing more than 80 per cent of its pilots and around 70 per cent of cabin crews.

Ryanair confirmed it will decamp from Belfast City Airport to Belfast International next April to coincide with a 50 per cent cut in APD on UK domestic flights, which will see the £13 tax reduced to £6.50.

It will operate on routes which include Alicante, Faro, Barcelona-Girona, Malaga, Manchester, Milan-Bergamo, Stansted, Paris Beauvais, East Midlands, Edinburgh, Gdansk and Krakow

Ryanair said two aircraft will be based at Aldergrove, where it will add 60 new aviation jobs, adding that its move represents an investment of $200 million (£167m), benefitting a further 650 jobs indirectly.