Ryanair FY22 Loss Narrows, Expects To Return To Profitability In FY23

Ryanair Holdings plc RYAAY reported FY22 revenue growth of 193% year-over-year to €4.8 billion.
The company reported an FY22 net loss of €(355) million, compared to a €(1.05) billion loss a year ago.
Scheduled revenues were up 156% Y/Y, reflecting a rise in traffic from 27.5 million customers to 97.1 million.
Ancillary revenue increased 258.2% Y/Y to €2.15 billion due to a 253% rebound in traffic and a solid performance in priority boarding and reserved seating.
Average fares fell 27% Y/Y to €27 due to COVID, Omicron & the Ukraine invasion.
Load factor improved to 82%, compared to 71% in FY21.
Operating costs increased 113% Y/Y to €5.27 billion, driven primarily by lower variable costs.
Ryanair's net cash generated by operating activities for FY22 totaled €1.94 billion, compared to €2.45 billion cash used last year.
The company mentions its fuel needs are ~80% hedged (65% jet swaps at c.$63bbl and 15% caps at c.$78bbl).
Ryanair reported a cash balance of €2.7 billion and a net debt of €1.45 billion as of March 31, 2022.
FY23 Outlook: The airline says that while bookings have improved in recent weeks, the booking curve remains much closer than was typical (pre-COVID).
Ryanair plans to grow FY23 traffic to 165 million (up from 97 million in FY22 and 149 million pre-COVID).
Despite limited visibility, 20% unhedged fuel, and the significant risks posed by the invasion of Ukraine and COVID, RYAAY hopes to return to reasonable profitability in FY23.
"Over the coming 5-years we expect our traffic to grow by 50% to 225m p.a. This growth will be delivered at lower fares but on a fleet of new B737 "Gamechanger" aircraft, which offer 4% more seats, yet burns 16% less fuel and reduce noise emissions by 40%," commented Group CEO Michael O'Leary.
Price Action: RYAAY shares are trading lower by 2.43% at $80.98 on the last check Monday.
Photo Via Wikimedia Commons

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