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Ryanair narrows full-year loss forecast, increases fuel hedging

Ryanair narrows full-year loss forecast, increases fuel hedging
Ryanair narrows full-year loss forecast, increases fuel hedging   -   Copyright  Thomson Reuters 2022
By Reuters

DUBLIN -Ireland’s Ryanair narrowed the range for its forecast annual loss on Monday, saying it now expects a net loss between 350 million euros and 400 million euros ($386 million to $441 million) for the year to March 31, 2022.

Europe’s largest low-cost carrier had previously guided the market to a loss of between 250 million euros and 450 million euros.

Ryanair said it had flown 11.2 million people last month compared to just 0.5 million during lockdown a year ago and 10.9 million in March 2019, the first time it had carried more passengers in a given month than in the corresponding pre-pandemic period.

That took full-year traffic to more than 97 million passengers, up from 27.5 million in the previous 12 months but below its pre-pandemic peak of 149 million.

The airline also said it has increased its fuel hedging to 80% cover for 2023, with around 65% locked-in at $630 per metric tonne through jet swaps – a hedging tool – and 15% caps at $775.

Ryanair had previously hedged 80% of its needs for the first half of 2023 and 70% for the second half.

Almost 10% of its fuel requirements for the first half of its 2024 financial year are hedged at $760 per metric tonne, it added.

The annual loss is an improvement on 2021, when the airline recorded an after-tax loss of 815 million euros ($989 million) after the pandemic slashed traffic and forced it to cut capacity for the year by 80%.

($1 = 0.9060 euros)