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Bullish Air Traffic Cushions Ryanair (RYAAY) Against Cost Woes
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Ryanair Holdings (RYAAY - Free Report) is being affected by high fuel costs. The airline’s fuel and oil expenses increased by more than 50% year over year in third-quarter fiscal 2023 (ended Dec 31, 2022). Also, a ramp-up in RYAAY’s operations is pushing up total costs.
Total operating expenses rose more than 35% year over year in third-quarter fiscal 2023, with a substantial increase in airport and handling charges, among other costs. Labor-related woes are also hurting operations at Ryanair.
Total operating expenses rose more than 35% year over year in third-quarter fiscal 2023, with a substantial increase in airport and handling charges, among other costs. Labor-related woes are also hurting operations at Ryanair.
However, a rebound in air-travel demand following the easing of COVID-related restrictions is a huge boon for Ryanair. On the back of buoyant traffic scenario in the Christmas/New Year period, RYAAY’s profit after tax in third-quarter fiscal 2023 was €211 million against a net loss of €96 million incurred a year ago.
Continuing the trend, the number of passengers ferried on RYAAY flights in February registered an impressive figure of 10.6 million. This compared favorably with the year-ago figure of 8.7 million.
Load factor (% of seats filled by passengers) was 92% in February 2023 compared with 86% a year ago. Ryanair expects its traffic in fiscal 2023 to be 165 million, indicating 11% growth from the pre-COVID-19 traffic numbers.
Below we present the fourth-quarter 2022 results of some other Zacks Airline industry stocks that too benefited from buoyant air traffic.
Owing to upbeat air-travel demand, operating revenues at American Airlines (AAL - Free Report) in fourth-quarter 2022 increased 39.3% year over year. Buoyant air-travel demand is also reflected by the total operating revenue increase of 16.6% from the fourth-quarter 2019 (pre- COVID-19) levels despite 6.1% lower capacity.
In the December quarter, passenger revenues, accounting for the bulk of the top line (92%), increased to $12,131 million from $8,382 million a year ago, driven by strong air-travel demand, mainly on the domestic front. Driven by soaring demand on healthy bookings, management expects total unit revenues in the first quarter of 2023 to be roughly 24-27% higher than the level recorded in first-quarter 2022.
Owing to buoyant air-travel demand, United Airlines (UAL - Free Report) posted a significant year over year increase (about 51.37%) in fourth-quarter 2022 revenues. The massive year-over-year increase in the top line was driven by 62.9% rise in passenger revenues (accounting for 90.3% of the top line) to $11,202 million.
Moreover, passenger revenues increased 12.8% from fourth-quarter 2019 reading. Nearly 39 million passengers traveled on UAL flights in the December quarter.
Driven by solid demand, UAL’s management expects total revenue per available seat mile to grow almost 25% year over year for the first quarter of 2023. Total revenues are anticipated to grow almost 50% year over year. United Airlines expects first-quarter 2023 earnings per share in the $0.5-$1.00 band.
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Bullish Air Traffic Cushions Ryanair (RYAAY) Against Cost Woes
Ryanair Holdings (RYAAY - Free Report) is being affected by high fuel costs. The airline’s fuel and oil expenses increased by more than 50% year over year in third-quarter fiscal 2023 (ended Dec 31, 2022). Also, a ramp-up in RYAAY’s operations is pushing up total costs.
Total operating expenses rose more than 35% year over year in third-quarter fiscal 2023, with a substantial increase in airport and handling charges, among other costs. Labor-related woes are also hurting operations at Ryanair.
Total operating expenses rose more than 35% year over year in third-quarter fiscal 2023, with a substantial increase in airport and handling charges, among other costs. Labor-related woes are also hurting operations at Ryanair.
However, a rebound in air-travel demand following the easing of COVID-related restrictions is a huge boon for Ryanair. On the back of buoyant traffic scenario in the Christmas/New Year period, RYAAY’s profit after tax in third-quarter fiscal 2023 was €211 million against a net loss of €96 million incurred a year ago.
Continuing the trend, the number of passengers ferried on RYAAY flights in February registered an impressive figure of 10.6 million. This compared favorably with the year-ago figure of 8.7 million.
Load factor (% of seats filled by passengers) was 92% in February 2023 compared with 86% a year ago. Ryanair expects its traffic in fiscal 2023 to be 165 million, indicating 11% growth from the pre-COVID-19 traffic numbers.
Below we present the fourth-quarter 2022 results of some other Zacks Airline industry stocks that too benefited from buoyant air traffic.
Owing to upbeat air-travel demand, operating revenues at American Airlines (AAL - Free Report) in fourth-quarter 2022 increased 39.3% year over year. Buoyant air-travel demand is also reflected by the total operating revenue increase of 16.6% from the fourth-quarter 2019 (pre- COVID-19) levels despite 6.1% lower capacity.
In the December quarter, passenger revenues, accounting for the bulk of the top line (92%), increased to $12,131 million from $8,382 million a year ago, driven by strong air-travel demand, mainly on the domestic front. Driven by soaring demand on healthy bookings, management expects total unit revenues in the first quarter of 2023 to be roughly 24-27% higher than the level recorded in first-quarter 2022.
Owing to buoyant air-travel demand, United Airlines (UAL - Free Report) posted a significant year over year increase (about 51.37%) in fourth-quarter 2022 revenues. The massive year-over-year increase in the top line was driven by 62.9% rise in passenger revenues (accounting for 90.3% of the top line) to $11,202 million.
Moreover, passenger revenues increased 12.8% from fourth-quarter 2019 reading. Nearly 39 million passengers traveled on UAL flights in the December quarter.
Driven by solid demand, UAL’s management expects total revenue per available seat mile to grow almost 25% year over year for the first quarter of 2023. Total revenues are anticipated to grow almost 50% year over year. United Airlines expects first-quarter 2023 earnings per share in the $0.5-$1.00 band.