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Ryanair predicts strong summer, good for Airbnb?

Ryanair predicts strong summer, good for Airbnb?

Ryanair, Europe's largest airline in terms of passenger numbers, reported a nearly record-breaking full-year profit for the period ending March 31. Despite less favourable fuel hedging, the airline remains cautiously optimistic about achieving modest profit growth over the next 12 months, thanks to strong summer demand. Ryanair expects a 10% increase in traffic this year, which will offset the 1 billion euro rise in its oil costs. The airline anticipates benefiting from higher summer fares compared to last year, with European short-haul capacity expected to be 5-10% below pre-pandemic levels.

CEO Michael O'Leary expressed confidence in people's desire to travel again after being restricted by the pandemic, with families returning to European beaches. Although other major European airlines have also reported robust summer bookings, O'Leary cautioned that the future, particularly winter and early 2024, may present challenges. Ryanair's shares were up 1.4% in early trading, contributing to a 27% increase in their value year-to-date.

If airline companies are predicting more travellers, that can only mean one thing – companies like Booking and Airbnb to have strong season ahead of them.

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Movement of Airbnb since coming to the market. (Source: Trading Economics)