After easyJet plc (OTC:ESYJY) showed robust summer bookings last week, Ryanair Holdings plc (NASDAQ:RYAAY) joined the trend today as its quarter results show that consumers are prioritizing travel despite persistently high inflation that is squeezing their budgets.

Ryanair reported a near-record annual profit while everyone, including Expedia Group (NASDAQ:EXPE) and IAG who owns British Airways, expects travel to stay hot this summer.

Flying Back To Profit

During the year ended in March, Ryanair has bounced back to a near-record €1.4 billion ($1.57 billion) profit, after making a €355m loss the previous year. The delivered profit also exceeded analyst and the company's own expectations, coming close to the record profit from the pre-pandemic 2018 that amounted to €1.45 billion. While the European airline industry hasn't fully recovered, operating at about 95% pre-Covid capacity, Ryanair was operating at 125% of its pre-pandemic capacity, continuing on this growth trajectory.

Ambitiously Reaching For The Stars

With its largest-ever summer schedule that covers nearly 2,500 routes with 3,000 daily flights, Ryanair expects to be flying 186 million passengers this year. Its long-term goal by 2034 is to transport 300 million passengers annually, which is more than any airline has done so far. Ryanair has spent $40 billion to purchase 300 new aircrafts from The Boeing Company (NYSE:BA) as it continues pursuing its ambitious agenda.

A Cautiously Optimistic Outlook

CEO Michael O'Leary was cautiously optimistic while expecting profits to further increase, but moderately, this year and therefore, topping the 2018's record with robust demand. Although summer demand is expected to be strong, soaring fuel costs need to be hedged effectively. Moreover, winter and the off-peak periods will be the ultimate test. Also, Boeing delivery delays could hamper 2024's capacity.

The Promise Of Its Multibillion-Dollar Deal With Boeing

The 300 ordered jets from Boeing are expected enable traffic to grow to 300 million passengers annually by March 2034. Ryanair will be adding 110 new Boeing jets over the next tree summer and therefore, open remarkable opportunities for the Irish airline. But Boeing's delays in deliveries could potentially reduce first half passenger numbers by as many as 750,000 with the airline already expecting to be 10 jets short in June and July. O'Leary expects deliveries to go smoother next summer as aircrafts for the summer of 2024 should arrive by the end of next May.

The Covid-19 Pandemic Made Travel 'More Resistant' To Inflation

Despite inflation weakening consumer spending, it is crystal clear that European consumers are prioritizing travel over other types of entertainment.

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