Ryanair has reported record summer profits, earning almost £25 per passenger as tight capacity and strong demand pushed fares higher across Europe.
The airline posted after-tax profits of €1.72 billion (£1.51 billion) for the second quarter of its financial year, covering July to September. Over the same period, Ryanair carried 61.2 million passengers, equating to an average profit of £24.67 per traveller. The load factor rose by one per cent to 96 per cent, leaving only a handful of empty seats on the typical flight. Average one-way fares increased by 6.5 per cent to €65 (£57).
Michael O’Leary, chief executive of Ryanair Group, set out why he expects the market to remain tight.
He said: "We expect European short-haul capacity to remain constrained to at least 2030 as the big 2 OEMs remain behind on aircraft production." He also pointed to maintenance issues limiting industry supply. O’Leary said: "Repairs to Pratt Whitney engines on Airbus A320 series aircraft are a further constraint."
The airline is steering aircraft to markets that it says support growth.
O’Leary said: "This winter, we have allocated Ryanair’s scarce capacity to those regions and airports cutting aviation taxes and incentivising traffic growth such as Sweden, Slovakia, Italy, Albania and Morocco by switching flights and routes away from high cost, uncompetitive markets like Germany, Austria and regional Spain.
"Industry capacity constraints, combined with our widening cost advantage, strong balance sheet, low-cost aircraft order book and industry-leading ops resilience will, we believe, facilitate Ryanair’s controlled profitable growth to 300 million passengers per annum by financial year 2034."
He also criticised proposals being discussed in Brussels on cabin baggage.
O’Leary said: "The EU Parliament is proposing even more stupid rules, such as further increasing free carry-on luggage limits, even though there is no room in the aircraft cabin for these extra bags, which will only lead to more airport security and flight delays as well as higher costs, and higher fares for Europe’s consumers."
MEPs say allowing a small personal item plus a roll-along case would prevent extra fees for travellers, setting up a fresh clash over costs and on-board space as Europe’s aviation market heads into winter.
