Omicron causes passenger numbers to fall at Ryanair

Ryanair saw passenger numbers fall sharply in January, after the rapid spread of Omicron hit demand.

The low cost airline carried 7.0m passengers last month, down on December’s 9.5m. That compares to the 1.3m passengers it carried in January 2021, when the UK and wide parts of mainland Europe were in lockdown, and 10.8m in January 2020, before the pandemic.

The load factor for January was 79% compared to 81% in December, 69% in January 2021 and 92% two years previously.

The emergence of the Omicron variant towards the end of 2021 saw the reintroduction of a number of restrictions intended to halt its rapid spread, including curbs on travel.

On Monday, the Irish carrier reported a third-quarter loss following a fall in passenger numbers over the peak festive booking season, and said it would need to cut prices in the short term to help foster demand.

While acknowledging the outlook will remain uncertain, it also struck an upbeat note for a stronger summer season, including higher ticket prices, fuelled by pent-up demand for overseas holidays.

In a note published on Wednesday, Deutsche Bank analyst Jaime Rowbotham said: "We continue to model fares for summer 2022 which are marginally ahead of pre-crisis levels, and as a result still see scope for Ryanair to deliver close to €1.4bn of net profit next year, based on its carrying 160m passengers, versus its target of 165m."

Deutsche Bank has a ‘buy’ rating on the stock. As at 1000 GMT, the Dublin-listed stock was ahead nearly 1% at €16.91.