Ryanair has reported that third-quarter scheduled revenue increased almost 85% to €1.45 billion due to strong travel demand at higher fares (+14% over pre-COVID), especially during the October mid-term and the peak Christmas/New Year holiday season. Ancillary revenue delivered another solid performance, generating over €22.50 per passenger.
Total third-quarter revenue rose 57% to €2.31 billion while operating costs increased 36% to €2.15 billion driven by higher fuel costs (+52% to €0.90 billion, offset by improved fuel burn as more gamechangers enter the fleet), crew pay restoration and 24% traffic growth. Ex-fuel operating costs rose by only 26%, marginally ahead of traffic and year-to-date unit costs (ex-fuel) are just €30 per passenger. Other income/expenses benefitted from a weaker US$ in the third quarter reversing H1’s negative currency charge.
While bookings continue to be closer-in than in spring 2020 (pre-COVID), the company has reasonable visibility for the remainder of the full year 2023, with full-year traffic guided at 168 million. Ryanair expects the fourth quarter to be loss making due to the absence of Easter from March. (£1.00 = €1.14 at time of publication).