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The Irish airline said air fares rose by 24% on average to around €58 (£50) in its first half.
The carrier is forecasting a “mid-teens percentage” rise in average fares over the final three months of 2023.
READ MORE: Airline launches four new routes from Scottish airport
Rising prices, together with a marked recovery in demand for air travel over Easter and the summer, helped counter a 29% rise in first half fuel costs to help it post the 59% surge in after tax profits, to €2.18 billion (£1.89bn) for the six months to September 30.
The group said it expects full-year earnings to rise by up to 30%, forecasting after tax profits of between €1.85bn (£1.6bn) to €2.05bn (£1.78bn), up from €1.43bn (£1.24bn) in 2022-23.
READ MORE: Airline launches new route from Scottish airport to Italy
Third Bridge analysts warned in 2022 that “the golden age of cheap air travel is over thanks to decade-high oil prices and inflation”.
Russell Pointon, director at Edison Group, said: “Ryanair’s first-half financials have taken off, showing a strong industry rebound as airlines continued to recover post the pandemic … driven by higher fares and a summer travel surge.”
READ MORE: Airline unveils six new destinations from Scottish airport
He said: “Passenger volumes rose to 105 million, an 11% increase … the outlook for the year is cautiously positive, anticipating net profits between €1.85bn and €2.05bn, which includes potential winter losses and limited visibility on the fourth quarter.
“This performance reflects the airline sector’s recovery post-pandemic though it will be worth watching the airline industry’s response to the EU’s probe into rising airline costs.”
So there may still be some scope for a better passenger costs outlook in the longer term.
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