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Hundreds of thousands of passengers are switching to this price range pleasant airline

London CNN Enterprise  — 

Ryanair carried a file variety of passengers over the summer time and says its price range pleasant airfares will entice much more clients as Europe falls right into a recession.

The low-cost provider posted its highest ever half-year revenue on Monday, incomes €1.37 billion ($1.36 billion) for the six months via September. That beat its earlier file excessive of €1.15 billion ($1.14 billion) in 2019.

It carried 95.1 million passengers in the course of the interval, up from 39.1 million a yr in the past. That’s 11% greater than the identical interval in 2019 earlier than the coronavirus pandemic hit.

Ryanair (RYAAY) now expects to hold 168 million passengers within the 12 months via March 2023 — 1.5 million greater than its earlier forecast and 13% greater than the yr earlier than the pandemic. The corporate’s inventory jumped 3.7% in Dublin.

Ryanair has emerged from the coronavirus pandemic stronger than ever, at the same time as a number of of its rivals went bankrupt or wanted government-backed bailouts. It was additionally in a position to keep away from the employees shortages that plagued lots of its rivals over the summer time, together with price range airline EasyJet.

Ryanair CEO Michael O’Leary stated cuts by rivals to fleets and passenger capability have created “monumental progress alternatives” for the Irish provider, which has seen its market share “surge” throughout main European markets.

“Hundreds of thousands of passengers are switching to flying Ryanair and we suspect that can proceed,” O’Leary stated in a video posted on the corporate’s web site.

He stated that issues concerning the influence of recession and inflation on Ryanair’s enterprise had been “overblown.”

“Individuals don’t cease flying throughout recessions, however they turn out to be way more worth delicate… Ryanair grows extra strongly in a recession as a result of we have now an enormous value benefit over our rivals, that value benefit is widening, and other people turning into extra worth delicate flip to us,” he added.

The robust earnings imply the corporate will reverse pandemic pay cuts for over 90% of its pilots and cabin crew from subsequent month — sooner than deliberate. “These long-term pay agreements with the overwhelming majority of our folks have now delivered absolutely restored pay 28 months sooner than beforehand agreed,” O’Leary stated.

Whereas Ryanair has recovered from the pandemic quicker than a lot of the aviation business, its progress subsequent yr might be hampered by Boeing (BA)’s “persevering with incapability to fulfill its supply schedule,” based on O’Leary.

The planemaker has promised to ship the entire 51 “Gamechanger” 737 plane Ryanair has ordered earlier than subsequent summer time, however O’Leary thinks there’s a rising danger of “slippage” with these deliveries.

Recognized for his forthright method, the airline boss described Boeing administration as “headless chickens” earlier this yr in a scathing criticism of plane delays.

Regardless of the robust outcomes, O’Leary stated Ryanair’s restoration stays “fragile” and “susceptible to shocks” from new Covid variants or the conflict in Ukraine.

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