By Anthony O. Goriainoff


Ryanair Holdings PLC said Monday that it expects to return to profitability in fiscal 2023 as it reported a consensus-beating narrowed net loss for fiscal 2022 on higher revenue, but cautioned that the recovery remains fragile.

The budget airline expects to see "greater visibility in the second quarter" as there has been "a strong recovery in bookings in recent weeks" due to strong pent-up demand, but the company hasn't issued any profit guidance for the year due to risks stemming from the Covid-19 pandemic and the Ukraine war, Chief Financial Officer Neil Sorahan said.

Mr. Sorahan said he expects the company to return to higher fares during the summer period, above pre-pandemic levels, and for traffic to grow to 165 million passengers in fiscal 2023 from 97 million in fiscal 2022, but noted almost zero visibility for the second half.

For the year ended March 31, Ryanair posted a net loss of 240.8 million euros ($250.7 million) compared with a EUR1.01 billion net loss the year before. A consensus estimate, based on a FactSet poll of 11 analysts, had forecast a net loss of EUR356.5 million.

Revenue came in at EUR4.80 billion compared with EUR1.64 billion the year before. A consensus estimate had put the figure at EUR4.9 billion, also taken from FactSet and based on 20 analysts' forecasts.

The company said its load factor--a measure of how full a plane is--stood at 82%, compared with 71% the previous financial year, and that it expects it to reach 90% in fiscal 2023.

Ryanair cautioned, however, that the recovery remains fragile due to the Omicron variant of the coronavirus and the war in Ukraine, which hurt bookings over Christmas and Easter. The company said its pricing for the first quarter of fiscal 2023 continued to need stimulation--that is, prices were made more favorable to consumers.

While bookings have improved in recent weeks, customers were booking closer to the departure date than was typical at this time of year, it said.

The company also said that, although its fuel requirements were 80% hedged, it expects the remaining 20% to give rise to some unbudgeted cost increases.


Write to Anthony O. Goriainoff at anthony.orunagoriainoff@dowjones.com


(END) Dow Jones Newswires

05-16-22 0247ET