Ryanair PLC (LON:RYA) expects to be close to breaking even this year even though Covid-19 disruption meant its latest quarterly losses increased.
The low-cost carrier flew 8.1mln passengers in the three months to June, the airline’s fiscal first quarter, up from 500,000 a year ago.
Consequently, it expects to carry between 90mln and 100mln passengers this financial year compared to guidance of around 80mln previously.
That will result in a small loss or breakeven for the year, Ryanair added.
“We are seeing a strong rebound of pent up travel demand into Aug. & Sept. and we expect this to continue into the second half of FY22, with pre-Covid-19 growth planned to resume strongly in summer 2022,” said the statement.
Losses in the quarter to June totalled €273mln (€185mln) as a recovery in revenues to €371mln from €125mln a year ago was outstripped by costs rising to €675mln from €313mln.
Michael O’Leary, chief executive, said Covid-19 had "continued to wreak havoc on our business during Q1" with most Easter flights cancelled and a slower than expected easing of EU travel restrictions into May and June.
"Significant uncertainty around travel green lists (particularly in the UK) and extreme government caution in Ireland meant that Q1 bookings were close-in and at low fares.
"Pricing remains below pre-Covid-19 levels and there will continue to be great value for Ryanair guests travelling this summer as we focus on recovering traffic, jobs and tourism across our European network.
"Based on current (close-in) bookings, we expect traffic to rise from over 5mln in June to almost 9mln in July, and over 10mln in August"
The airline had €4.06bn cash with almost 90% of its B737 fleet unencumbered at quarter-end, the statement added.
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