Airfare increases are coming

The financial results of the last quarter of 2022 and the forecasts for 2023

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Europe's largest low-cost carrier, Ryanair, is confident that its profitability will continue from now on, as demand for travel continues to grow and the company uses high-capacity, fuel-efficient aircraft.

Profit after tax in the October-December quarter came to 211 million euros, compared to a loss of 96 million euros in the corresponding period of 2021, while sales increased by 57% to 2,31 billion euros.

The company reiterated its full-year profit forecast of 1,325 billion euros to 1,425 billion euros.

Record profits
"We will have record profits this financial year and expect to continue to grow profitability in the years to come," said CFO Neil Sorahan. He also predicted that based on current booking data, fares will increase over Easter and summer.

The airline industry is recovering from its worst ever recession and low-cost airlines such as Ryanair and EasyJet are benefiting as consumers look for deals.

In this context, Ryanair announced that it is gaining market share in Spain and Scandinavia, and that it has more capacity in certain markets, including the United Kingdom, using Boeing Co.'s fleet. 737 Max with more seats and reduced fuel consumption.

Passenger numbers will reach 168 million this financial year and rise to 225 million by 2026, the company predicts, but it may find itself with 4-5 fewer aircraft in the summer peak as Boeing continues to struggle with production.

Increase in bookings and fares
The company's CEO Michael O'Leary recently said that the company estimates that its best period will be the summer, as travel remains a priority for the public and Ryanair expands its route network.

The carrier pointed out that fares remained high after last year's increase and are likely to rise further in the single digits.

Finally, Ryanair will use its strong balance sheet to pay down €1,6bn of maturing debt using its cash, the CFO said.