Ryanair returns to first quarter profit - Business

Ryanair returns to first quarter profit – Business

Irish airline Ryanair returned to profit for its delayed first quarter thanks to the surge in traffic, posting a positive result of 170 million euros after tax against a net loss of 273 million a year earlier.

the traffic has been multiplied by more than five over one year, to 45.5 million passengers carried. But the result is still significantly lower than the 243 million euros in net profit published by the company for its first quarter of 2019/2020, i.e. before the pandemic, due in particular to lower ticket prices.

“While traffic has recovered strongly”, even rebounding beyond its pre-pandemic levels, “Russia’s invasion of Ukraine in February weighed on reservations and rates” during the Easter holidays, deplored the boss of the “low cost” company, Michael O’Leary, quoted in a press release.

The company says it is “protected against skyrocketing fuel costs“, driven in particular by the war in Ukraine, because it has covered 80% of its kerosene purchases for the current financial year.

But the resumption of air transport “remains fragile” and if the high Covid vaccination rate in Europe is a source of hope, “we cannot ignore the risk of new variants” next fall, warns the company, still scalded by the appearance of Omicron last November.

Due to an accumulation of uncertainties both health and geopolitical, among others, Ryanair believes that it is too early to make a profit forecast for its full financial year.

Salary cuts

The company also believes that its strategy of negotiating pay cuts with the unions to get through the health crisis allows it to have the necessary personnel today where competitors, who had massively laid off, are struggling to recruit to absorb the recovery in traffic.

The company says it has been negotiating with the unions since the spring to restore wages as the recovery progressesadding that they have reached agreements to this effect with organizations representing 80% of pilots and 70% of cabin crew.

This has not prevented Ryanair’s activity from being disrupted in recent weeks by strikes for better working conditions and wages in several countriesin particular in Belgium and Spain, even if the company minimized the impact of these movements.

Traffic was multiplied by more than five over one year, to 45.5 million passengers transported. But the result is still significantly lower than the 243 million euros in net profit published by the company for its first quarter of 2019/2020, i.e. before the pandemic, due in particular to lower ticket prices. “While traffic has recovered strongly”, even rebounding beyond its pre-pandemic levels, “Russia’s invasion of Ukraine in February weighed on reservations and rates” during the Easter holidays, deplored the boss of the “low cost” company, Michael O’Leary, quoted in a press release. The company specifies that it is “protected against the skyrocketing cost of fuel”, driven in particular by the war in Ukraine, because it has covered 80% of its kerosene purchases for the current financial year. But the resumption of air transport “remains fragile” and if the vaccination rate against Covid, high in Europe, is a source of hope, “we cannot ignore the risk of new variants” next fall, warns the company , still scalded by the appearance of Omicron last November. Due to an accumulation of uncertainties both health and geopolitical, among others, Ryanair believes that it is too early to make a profit forecast for its full financial year. The company also believes that its strategy of negotiating wage cuts with the unions to get through the health crisis allows it to have the necessary staff today where competitors, who had massively laid off, are struggling to recruit to absorb the resumption of traffic. . The company specifies that it has been negotiating with the unions since the spring to restore wages as the recovery progresses, adding that it has reached agreements to this effect with the organizations representing 80% of the pilots and 70% of the cabin crew. This has not prevented Ryanair’s activity from being disrupted in recent weeks by strikes for better working conditions and wages in several countries, in particular in Belgium and Spain, even if the company has minimized the impact of these movements.

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