Ryanair is continuing to experience a very strong recovery, but it remains fragile and could be thrown off course by external developments, according to group CEO Michael O’Leary.
“While our recovery and growth are very strong, they are still very fragile and vulnerable to adverse outside developments,” Michael O’Leary said at a news conference in London.
He said it “looks like we’re on track” to report an average of 4% empty seats per flight in August, the same as in July.
Michael O’Leary also stated today that Europe’s short-haul aviation market is unlikely to return to pre-pandemic levels in the next two years due to high energy costs and the economic consequences.
“I believe that the overall market will not return to pre-Covid traffic levels in 2023 or 2024. They will most likely lag behind “He stated.
Ryanair, on the other hand, “will grow stronger in a recession as we have in every previous recession,” he stated.
Ryanair’s relatively high level of fuel hedging and low aircraft costs, according to the airline’s CEO, will allow it to undercut competitors.
Ryanair raised its full-year passenger forecast earlier this month after adding more flights to its UK winter schedule in response to cuts by IAG-owned rival British Airways.
In the fiscal year ending March 31, Europe’s largest airline expects to fly 166.5 million passengers.
This is an increase from a previous target of 165 million, following the addition of more than one million seats to and from 20 UK airports.
Following Heathrow Airport’s decision to cap capacity in order to combat widespread disruption, British Airways announced this week that it would cancel some flights until the end of October.
Airlines and airports across Europe have struggled to keep up with the surge in post-lockdown travel, with many failing to hire enough personnel to handle check-ins and baggage.
However, Ryanair, which made a point of keeping its pilots and crew up to date on their flying hours during the pandemic and does not fly from Heathrow, carried the most passengers in a single month in both June and July.
It has taken advantage of competitor cancellations, particularly in the United Kingdom, by adding extra flights.
The Irish airline carried 97 million passengers in its most recent fiscal year, and 149 million before the Covid-19 pandemic struck.
