Ryanair profits take off as travellers take back to the skies after shock from Ukraine war
Profits at Ryanair soared as getaways over the Coronation weekend and a strong Easter powered a strong first quarter, at the low-fare airline .
The Irish budget airline, which flies in an out of London Stansted, reported profit of €663 million (£573 million ) for the first quarter, up from €170 million from a year earlier, when Russia’a war in Ukraine kept travellers at home.
Over 50 million people flew with the company in the 12 weeks to the end of June, leaving it on course to keep its crown as Europe’s biggest airline by passenger numbers. The proportion of seats sold, or load factor, hit 95%, up from 92%. Revenue hit €2.6 billion, up 40%.
It continued to call “urgent reform” of what it calls Europe’s “inefficient air-traffic control” system, with strikes once again threatening to cause summer disruption. Michael O’Leary, chief executive of the company, said:
“In May we submitted a petition to the European Commission, signed by over 1 million of our customers, calling on the EU to protect ‘overflights’ during national ATC strikes. We believe this would reduce flight delays, cut flight times, and unnecessary CO2 emissions.
“Over the past 6 months, French air traffic control alone, has held 60 days of strikes, during which the French government. used minimum service laws to protect local/domestic flights while disproportionately cancelling overflights. We, and our customers, call on the European Commission President, Ursula von der Leyen, to protect the single market for air travel and minimise the impact of air traffic control strikes on EU citizens.”
Big week for interest rates and earnings, FTSE 100 seen lower
The FTSE 100 index is set for a lacklustre session ahead of interest rate meetings by policymakers in the United States and Europe.
The Federal Reserve is expected to raise rates by another 0.25% on Wednesday, with commentary from chair Jerome Powell on whether this marks the top of the tightening cycle likely to be significant.
On Thursday the European Central Bank is expected to announce a 0.25% Increase to 3.75%, which some economists think might represent the peak for rates as inflation begins to fall back.
In addition, the resurgence of the tech sector will be tested this week as Microsoft, Alphabet and Meta Platforms are among the mega caps due to report results.
Asia markets have started the week in mixed fashion, with Tokyo’s 225 Nikkei up more than 1% but Hong Kong’s Hang Seng index 2% lower as traders fret over the performance of China’s economy.
IG Index expects the FTSE 100 index, which rallied last week to finish Friday’s session at 7663, to open about 0.1% lower.
Recap: Friday’s top stories
Good morning. Here’s a summary of our headlines from Friday: