Ryanair reported a record after-tax profit of €211 million for the third quarter of 2022 (Q3 2022) and said early bookings indicate it to be on track for a "strong" summer 2023.
"We believe we will see robust demand both through Easter and into summer 2023 for short-haul flights across Europe," said chief executive Michael O'Leary.
"Strong pent-up travel demand over the October mid-term and peak Christmas/New Year holiday season" drove Q3 2023 profits, the carrier said, with traffic up 24% year-on-year to around 38 million passengers and fares up 14% on pre-pandemic levels. Earnings per share were up to €0.18, compared with €0.08 in Q3 2021.
Ryanair operated at a load factor of 93% for the quarter, when it saw revenue surge 57% compared with the same period in 2021, to €2.31bn, with operating costs hitting €2.15bn, up 36%.
The Dublin-headquartered carrier claimed it had "one of the strongest" balance sheets in the sector, citing a BBB (positive) credit rating with the agencies S&P and Fitch and €4.07bn gross cash.
The carrier said it has a fleet of 523 aircraft to operate what is to be 2,450 routes in 2023, after the addition of more than 200 new routes in Q3 2022 and the addition of new "gamechanger" Boeing 737 jets.
It said it had a "cost advantage" over other airlines as all but 4% of its fleet are owned, meaning it sidesteps the interest rate challenges and leasing expenses it said "continue to rise for competitors".
The carrier said it saw market share increases in several countries over the quarter, with the "most notable gains" in Italy, from 26% to 40%, in Poland, were it went from 27% to 38%, in Ireland, where the jump was from 49% to 58%, and Spain, where it climbed 2% to 23%.
It restated a forecast of annual profit of between €1.325bn and €1.425bn for the financial year ending in March 2023, while O'Leary again said the airline aims have one in eight flights powered by sustainable aviation fuel (SAF) by 2030.
The carrier said it had avoided some of the pilot and crew shortages affecting other airlines by "recruiting early" as pandemic travel curbs were lifted and by implementing pay cuts during the pandemic that are to be restored up to 2025 as travel revives.
Analysts at Bernstein reacted to the results by reiterating their "buy" outlook and describing Ryanair earnings as "resilient".