2 AIRCRAFT ($200M INVEST.), 23 ROUTES AND MORE THAN 1M PASSENGERS P.A. FOLLOWING SICILIAN REGION’S SCRAPPING THE MUNICIPAL TAX

Ryanair, Europe and Italy’s No.1 airline, today (24 Sep) announced it is opening a new base at Trapani-Marsala from Jan ’26. This follows the Sicilian Region’s decision to scrap the Municipal Tax at smaller Sicilian airports. Trapani-Marsala will become Ryanair’s third Sicilian base (20^th in Italy) further enhancing connectivity and the availability of low fares for Sicilian residents across the Island. This $200m new aircraft investment in Trapani-Marsala will create over 800 local jobs, 23 exciting routes, (incl. 11 new to major European destinations), and +260k (+25%) additional seats enhancing year-round connectivity, tourism, and jobs growth – all at Europe’s lowest fares.

The direct and immediate impact that reduced access costs have on airports is demonstrated by the record traffic growth Ryanair is already delivering to Abruzzo, Calabria, and Friuli-Venezia Giulia. At larger Sicilian airports (Catania & Palermo), where the Municipal Tax still applies, there remains significant potential to further increase connectivity, particularly on key routes such as Rome and Milan. Scrapping the Municipal Tax also at these airports will unlock additional capacity, attract new routes, and ensure year-round connectivity, bringing wider economic benefits to the Island.

Ryanair welcomes the efforts of President Schifani and the Sicilian Govt in enhancing regional connectivity and congratulates them on the important decision to scrap the Municipal Tax at smaller Sicilian airports. Now is the right time to take a further step and abolish the Municipal Tax at all Sicilian airports to boost year-round connectivity and deliver lower fares for Sicilian citizens and visitors. This would activate Ryanair’s Sicilian growth plan, delivering 3 million additional passengers p.a., up to 5 additional based aircraft, and creating thousands of new local jobs.

Ryanair’s new Trapani-Marsala base will deliver:

• 2 new B737 a/c – $200M invest. (1 in W25 and 2 in S26)
• 23 tot. routes, incl. 11 new to Baden-Baden, Bari, Bratislava, Bournemouth, Brussels, Katowice, London, Pescara, Saarbrücken, Stockholm & Verona.
• Traffic grows to more than 1M pax p.a.
• +10% increase in capacity to Rome & Milan
• Supp. over 800 local jobs
• Increased year-round connectivity, more tourism, more jobs and lower fares.

To celebrate its new Trapani-Marsala base, Ryanair has launched a 3-day seat sale with fares from €21.99 on sale only at ryanair.com.

In Trapani, Ryanair’s CEO Eddie Wilson said:

“As Europe and Italy’s No.1 airline, Ryanair is delighted to announce this major investment at Trapani-Marsala with the opening of a new base from Jan ‘26. We’ve worked closely with both the Regional Govt. and Airgest team to deliver this exciting investment. Since first flying to Sicily in 2003 Ryanair has carried 100 million passengers to/from Sicily, our new Trapani-Marsala base will deliver 2 new aircraft, 23 routes (11 new), more than 1 million passengers annually, and support over 800 local jobs. By connecting Trapani directly with nine countries incl. Poland, Spain, Sweden, and the UK, and with major Italian cities such as Pescara, Pisa, Turin, plus +10% incr. capacity to Milan & Rome, this new base will significantly enhance international accessibility and deliver true year-round connectivity, driving inbound tourism and ensuring Trapani and the wider region benefit from a consistent flow of visitors and sustained economic growth throughout the year.

Ryanair welcomes President Schifani and Sicilian Govt’s decision to scrap the Municipal Tax at the smaller Sicilian airports, and now is the right time to take the next step. Extending this measure to all Sicilian airports would unlock further connectivity, deliver lower fares, and strengthen year-round connectivity for Sicilian citizens and visitors. This will allow Ryanair to deliver transformative traffic, tourism, and jobs growth for Sicily, delivering 3 million additional passengers per year, 5 new aircraft, expanded routes to mainland Italy and international destinations, and thousands of new local jobs.

We also urge the Italian Government to scrap the Municipal Tax at all Italian airports to stimulate capacity, reduce fares, and drive economic growth. Should the Government act, Ryanair is ready to invest $4bn in Italy, adding 40 new aircraft, 20 million additional passengers, and over 250 new routes.”

Councillor for Infrastructure and Mobility of Sicily Region, Alessandro Arico’, said:

“A historic day for air transport in Sicily, as it marks a new and more exciting chapter in relations with one of the major international players in air travel, Ryanair. Thanks to the elimination of the municipal surtax, strongly advocated by the Schifani Government, air traffic to Sicilian airports will be incentivized by up to 5 million passengers. This will boost the economic and tourism development of the region, and above all benefit travelers, who will enjoy lower fares and new destinations made possible by the new agreement with the airline. The deal includes the establishment of a new Ryanair base in Trapani, 23 new routes, and a projected increase in passenger traffic of over 1 million by 2026. All of this is part of a broader strategy to relaunch Sicily’s airports, which also includes territorial continuity measures for Comiso (starting November 1), Lampedusa, and Pantelleria. Along with Trapani, Palermo, and Catania, these airports together form Italy’s third-largest regional airport system”.

Airgest’s President, Salvatore Ombra, said:

“The return of Ryanair’s base to Trapani Airport is not just a milestone — it is the milestone. It comes after a 10-year absence of the Irish airline from the airport, an absence that was deeply felt and had repercussions throughout the region. During the revival project of Vincenzo Florio Airport, which began six years ago, we faced all kinds of challenges — even the Covid pandemic got in the way. But what never wavered was our determination, our drive to act, and the support of an enlightened regional government that chose to stand by the people of Trapani and their airport. We were right to champion the removal of the municipal tax, and just a few months later, we are seeing the results. Ryanair has kept its commitment to base two aircraft in Birgi, which has led to an increase in routes. We would like to thank the President of the Sicilian Region, Renato Schifani, as well as the Regional Ministers for Transport, Alessandro Aricò, and for Economy, Alessandro Dagnino, who made this possible. And this is just the beginning — many more projects are in the pipeline for the modernization of the airport terminal”.

 

             

RYANAIR CALLS ON EU COMM & PRESIDENT URSULA VON DERLAYED AGAIN TO EXPLAIN WHY SHE HAS ALLOWED ANOTHER SUMMER OF RECORD ATC DELAYS

Ryanair, Europe’s No.1 airline, today (Wed, 3 Sept) called on EU Comm President, Ursula von “Derlayed-Again”, and certain EU Govts to explain why they have allowed another Summer of record ATC failures, which delayed or cancelled the travel plans of over 21m Ryanair passengers so far this year.

This call comes as Ryanair released its August “ATC Delays League”, which again shows that France, Spain, Germany, UK, and Greece are the worst ATCs for delays / cancellations because their Govts refuse to ensure their ATC services are properly staffed and managed.

There is no excuse for these failing ATCs to cause so many flight delays and passenger disruptions, when many other EU ATCs like, Bulgaria, Denmark, Slovakia, Netherlands, Belgium are delivering an efficient ATC service (without mismanagement or staff shortages).

Ryanair has long called for the EU to reform its failing ATC services to ensure they are fully staffed but the EU Commission keeps ignoring the continuing ATC mismanagement and staff shortages. Ryanair invites all passengers to visit the ‘Air Traffic Control Ruined Your Flight’ webpage and demand that the EU Comm President & National Transport Ministers take urgent action to fully staff their national ATC services, which would eliminate 90% of ATC delays. 

Ryanair’s Michael O’Leary said:

“Yet another month of ATC mismanagement has passed in August with zero action to fix these failing ATC services by those responsible – the EU Commission and National Transport Ministers. Europe’s worst performing ATCs in France, Spain, Germany, the UK, and Greece continue to inflict avoidable delays and cancellations on thousands of flights and millions of Ryanair passengers due to  their inexplicable mismanagement and short staffing.

This failing ATC mismanagement in France, Spain & Germany is exposed by other efficient ATCs in Bulgaria, Denmark, Slovakia, Netherlands, and Belgium who continue to deliver Europe’s most efficient ATC services. This proves that well-managed, properly staffed ATC is not just possible but is already being delivered by many EU States. So why can’t France, Spain, Germany, the UK, and Greece do the same? The answer is: they can, but as complacent, protected State monopolies, they have no incentive to care about delays or passengers. If they did, they would ensure their ATC services are fully staffed and efficiently managed.

It is inexcusable that passengers and airlines continue to pay hefty fees for failing ATC services. Ryanair calls on the EU Commission and EU Transport Ministers of France, Spain, Germany, the UK, and Greece to take immediate action. Ryanair also calls on passengers to join Ryanair’s campaign and have their say by visiting the ‘Air Traffic Control Ruined Your Flight’ webpage and demand real reform of these failing ATC providers in France, Germany, Spain, the UK and Greece.”

Ryanair Holdings plc today (21 July) reported Q1 profit after tax of €820m, compared to prior-year Q1 PAT of €360m, as traffic grew 4% to 58m passengers at 21% higher fares.

Q1 highlights include:

• Traffic grew 4% to 57.9m.
• Rev. per pax rose 15% (ave. fare up 21% to €51 & ancil. rev. up 3%).
• Unit cost inflation just 1% – cost gap advantage widens.
• Competitive fuel hedges de-risk Group:  c.85% FY26 at $76bbl.
• 181 B737 “Gamechangers” in 618 fleet (incl. 5 deliveries in Q1).
• Over 160 new S.25 routes (total: 2,600 routes).
• 30 spare CFM LEAP engines bought to improve resilience.
• Ryanair added to the MSCI World Index.

Q1 REVIEW

Ryanair Group CEO Michael O’Leary, said:

Revenue & Costs:

“Total revenue rose 20% to €4.34bn.  Scheduled revenue increased 26% to €2.94bn as traffic grew 4% with 21% higher fares.  Q1 fares substantially benefitted from having a full Easter holiday in April, weak prior-year comps and marginally stronger than expected close-in pricing.  Ancillary revenues delivered another solid performance rising 7% to €1.39bn.  Operating costs rose 5% (+1% per pax) to €3.42bn as our jet fuel hedging largely offset ATC fees (up 16%) and higher enviro. costs (as ETS allowances unwind and SAF blend mandates impact costs from Jan. 2025).

Ryanair’s competitive fuel hedging provides a key advantage in current volatile oil markets, with FY26 almost 85% hedged at $76bbl and FY27 36% hedged at just under $66bbl. 

Balance Sheet, Liquidity & Returns:

Ryanair’s balance sheet is one of the strongest in the industry with a BBB+ credit rating (both Fitch and S&P) and unencumbered B737 fleet (over 590 aircraft).  At 30 June, gross cash was €4.4bn after €0.6bn capex and almost €0.4bn debt repayments.  Net cash was €2.0bn (up from €1.3bn at 31 Mar.), leaving the Group well positioned to repay approx. €2.1bn maturing bonds over the next 10-months (incl. an €850m bond in Sept.) from internal cash resources.  This financial flexibility further widens the cost gap between Ryanair and competitors who are exposed to expensive (long-term) finance and rising aircraft lease costs.

We welcome Ryanair’s full addition to the MSCI World Index and expect to join the FTSE Russell Index, following their semi-annual index review, in Sept. (albeit this inclusion will be phased over approx. 2-years).  In May, we launched our latest share buyback and have purchased (and cancelled) c.1.6m shares under the programme, at a cost of €39m, at 30 June.

FLEET & GROWTH

Ryanair has 181 B737-8200 “Gamechangers” (up 25 from June 2024) in its 618 aircraft fleet, facilitating 3% FY26 traffic growth (to 206m passengers).  We remain confident that the 29 remaining Gamechangers in our 210 orderbook will deliver well ahead of S.26, when we hope to recover this years delayed traffic growth into FY27.  Boeing continues to expect MAX-10 certification in late 2025 and we’re planning for the timely delivery of our first 15 MAX-10 deliveries in Spring 2027, with 300 of these very fuel efficient aircraft due to deliver by Mar. 2034. 

This summer we will operate over 2,600 routes (incl. 160 new routes) and we’re seeing strong S.25 travel demand across our network.  Our Group airlines capacity constrained growth is being allocated to those regions and airports who are cutting aviation taxes and incentivising traffic growth, and we expect this trend to continue.

We believe European short-haul capacity will remain constrained for the next 5 years to 2030 as the big 2 OEMs remain well behind on aircraft deliveries, many of Europe’s Airbus operators work through Pratt & Whitney engine repairs and EU airline consolidation continues (SAS, TAP, Air Europa & others).  These industry capacity constraints, combined with our widening unit cost (and fuel hedge) advantage, strong balance sheet, low-cost aircraft orders and industry leading ops resilience will, we believe, facilitate Ryanair’s controlled profitable growth to 300m passengers p.a. by FY34. 

ESG

During Q1 we took delivery of 5 new B737 Gamechangers (4% more seats, 16% less fuel & CO₂) and saw the benefit (1.5% lower fuel burn and 6% less noise) from the retrofit of winglets to our B737NG fleet (target of 409 by 2026).  Our recent deal to buy 30 CFM LEAP-IB engines is a significant $500m commitment to improve our operational resilience.  These latest technology engines reduce fuel consumption and CO₂ emissions per seat by up to 20%.  The Groups ambitious SAF commitments and our ongoing investment in new technology positions Ryanair as one of Europe’s most environmentally efficient airlines. It is notable that, despite being Europe’s largest passenger airline, we are only No.4 in the recent Cirium list of EU airline CO₂ emissions.

OUTLOOK

FY26 traffic remains on track to grow just 3% to 206m passengers, due to heavily delayed Boeing deliveries.  As previously guided, we expect modest unit cost inflation in FY26 as the delivery of more B737 Gamechangers, advantageous fuel hedging and effective cost control across our Group airlines helps offset increased ATC charges and higher enviro. costs.  While S.25 travel demand is strong, Q2 fare increases will be lower than in Q1 (which benefitted from a full Easter holiday in April and weak prior-year comps) and we now expect to recover almost all of the 7% fare decline we suffered in PY Q2.  The final H1 outcome is, however, heavily dependent on the strength of close-in Aug. and Sept. bookings.  As is normal at this time of year, we have zero H2 visibility (where PY fare comps normalise and last years modest delivery delay compensation rolls off). 

It remains too early to provide meaningful FY26 PAT guidance.  We do, however, cautiously expect to recover almost all of last years 7% full-year fare decline, which should lead to reasonable net profit growth in FY26.  The final FY26 outcome remains heavily exposed to adverse external developments, incl. the risk of tariff wars, macro-economic shocks, conflict escalation in the Middle East and Ukraine and European ATC strikes, mismanagement & short staffing.”    

RYANAIR’S LOW FARE FLIGHTS NOW AVAILABLE TO KIWI CUSTOMERS

Following the announcement of their “Approved OTA” partnership in Jan last, Ryanair, Europe’s No.1 airline, today (Wed, 29^th May) announced that its low fare flights are now available to book as part of Kiwi bookings just in time for the peak Summer holiday season. For Kiwi customers who wish to book Ryanair flights/ancillaries, this exciting new partnership means;

• Customers benefit from Ryanair’s low fares combined with Kiwi’s virtual interlining service.
• Customers receive all flight-related communications directly from Ryanair, including T&Cs and important flight updates.
• Customers have direct access to their myRyanair account to manage their booking.
• Customers don’t have to complete Ryanair’s customer verification.

Over the past few months, Ryanair has signed “Approved OTA” distribution agreements with six large OTAs, including this partnership with Kiwi, demonstrating how OTAs can work transparently with Ryanair to benefit consumers.

Speaking from Prague, Ryanair CEO, Eddie Wilson, said:

“We’re delighted to be in Prague with the Kiwi team today to launch a partnership with Ryanair flights now being available to Kiwi customers to book with full price transparency (no overcharges or hidden mark-ups) and direct access to their booking through their myRyanair account, which is great news for Kiwi customers.

With the peak summer season just around the corner, we look forward to seeing lots of happy Kiwi customers onboard our low fare Ryanair flights not only from our 4 Czech airports to 39 destinations, but right across Europe.”

Kiwi.com co-founder & CEO, Oliver Dlouhý, said:

“We couldn’t be more proud that the largest airline in Europe chose Kiwi.com as their first OTA partner for booking flights, recognising our investments in our product and customer experience. Our cooperation with Ryanair reflects our commitment to establishing relationships with airlines for the benefit of customers and our long-term business objectives.”

TRAFFIC GROWS 9%TO 184M DESPITE BOEING DELAYS
€700M SHARE BUYBACK ANNOUNCED

Ryanair Holdings plc today (20 May) reported full-year PAT growth of 34% to €1.92bn, as traffic grew 9% to 184m passengers (23% more than pre-Covid).  The Group’s industry leading cost base and increased revenues helped to offset a significantly higher fuel bill as hedged oil prices rose from $65bbl in FY23 to $89bbl in FY24.

	Mar. 2023	Mar. 2024	Change
Customers	168.6m	183.7m	+9%
Load Factor	93%	94%	+1pt
Revenue	€10.78bn	€13.44bn	+25%
Op. Costs	€9.20bn*	€11.38bn	+24%
PAT	€1.43bn*	€1.92bn	+34%

FY24 Highlights:

• Traffic grew 9% to 183.7m, despite Boeing delays.
• Rev. per pax up 15% (ave. fare +21% & ancil. rev. +3%).
• Fuel bill rose 32% (+€1.25bn) to €5.14bn.
• ESG ratings upgraded (MSCI ‘A’ & CDP ‘A-’) & strong 85% CSAT score achieved.
• 146x B737 “Gamechangers” in 584 aircraft fleet at Mar. 2024 due to Boeing delays.
• 5 new bases and over 200 new routes open for S.24.
• FY25 fuel over 70% hedged at just under $80bbl saving €450m.
• Maiden int. div. €0.175 paid in Feb.  Final div. of €0.178 (payable in Sept.).
• 300x B737-MAX-10 order underpins growth to 300m pax (FY34) subject to Boeing deliveries.

 

Ryanair’s Group CEO Michael O’Leary, said:

ENVIRONMENT:
“CDP recently awarded Ryanair an ‘A-’ climate rating (previously ‘B’), topping off a year of ESG upgrades incl. our industry leading MSCI ‘A’ rating (up from ‘BBB’), and retention of our Sustainalytics ranking as Europe’s No.1 airline for ESG.  Our new aircraft and increasing use of SAF has positioned Ryanair as one of the EU’s most environmentally efficient major airlines.  In FY24 we took delivery of 48x B737-8200 “Gamechangers” (4% more seats, 16% less fuel & CO2) and we retro-fitted winglets on over 25% of our B737NG fleet (target 409 by 2026), reducing fuel burn by 1.5% and noise by 6%.  Last year we expanded our SAF partnerships (incl. our first UK delivery from Shell) and we remain on track to achieve our ambitious 2030 goal of powering 12.5% of Ryanair flights with SAF (10% supply already secured).  In Apr. we extended our partnership with Trinity College Dublin’s Sustainable Aviation Research Centre (“TCD”) to 2030.  TCD’s valuable research facility supports the acceleration of SAF deployment across Europe.

In 2023 Europe suffered 67 days of ATC strikes, causing thousands of (avoidable) flight cancellations to/from Germany, Spain, Italy and the UK while France (in particular) uses minimum service laws to overprotect French local/domestic flights.  As we head into S.24, we again call on the EU Commission to deliver urgent reform of Europe’s inefficient ATC system, by protecting overflights (during national strikes) which would deliver important environmental improvements in EU air travel.  Regrettably, there has been zero action from the Commission on this environmental initiative.  We again call on  Commission President Ursula von der Leyen to defend the single market for air travel by protecting 100% of overflights during national ATC strikes, as is already the case in Greece, Italy and Spain.

GOVERNANCE:
The Board is pleased to welcome 2 new NEDs from 1 July, Ms. Jinane Laghrari Laabi (Morocco) and Ms. Amber Rudd (UK).  Jinane is a former partner with McKinsey & Company (Casablanca) covering Morocco, Africa & Middle East.  Amber is a former UK MP who held senior cabinet positions including Home Secretary and Secretary of State for Energy and Climate Change.  To facilitate these appointments, Louise Phelan and Michael Cawley have confirmed that they will step down from the Board at the end of June having completed their 9 year tenure and we thank them sincerely for their leadership and service.  These new appointments, which align with our orderly succession plans, further enhance Ryanair’s Board diversity (geographic, gender and ethnic balance) with a 50:50 gender split following these latest changes. Our Chairman (Stan McCarthy) recently refreshed Board Committees to reflect these Board changes. 

During FY24, Ryanair’s EU ownership continued to increase and was just over 48% at year-end (up from 46%).

FLEET & GROWTH:
Ryanair had a fleet of 146x B737 Gamechangers at year-end and we hope to increase this to 158 by the end of July, which is 23 short of our contracted Boeing deliveries.  We continue to work closely with Boeing CEO (Dave Calhoun), CFO (Brian West) and the new Seattle management team to improve quality and accelerate B737 aircraft deliveries.  There remains a risk that Boeing deliveries could slip further.  We plan to deliver as much growth as possible for passengers and airport partners in S.24, although these delays mean more traffic growth will occur in lower yielding H2 than planned.  To facilitate this growth, we will continue to take delivery of B737s through Jul., Aug., and Sept., and Lauda recently extended 3x A320 op. leases by 4-years to 2028.

Travel demand in Europe is strong for S.24 and, despite Boeing delivery delays, we will operate our largest ever Summer schedule with over 200 new routes (and 5 new bases).  S.24 short-haul EU capacity is constrained as competitor airlines ground A320 aircraft for P&W engine repairs (these disruptions will likely run into 2026) and OEMs struggle to recover their delivery backlogs.  We therefore urge customers to book Summer travel early on www.ryanair.com to secure the best airfares before they sell out.

We expect European airline consolidation to continue, with the takeover of ITA (Italy) and Air Europa (Spain) progressing and the sale of TAP (Portugal) next.  This, in addition to A320 fleet groundings and the large backlog of OEM aircraft deliveries, is likely to constrain capacity growth in Europe for some years.  These capacity constraints, combined with our significant cost advantage (incl. FY25 fuel hedge savings of €450m), strong balance sheet, low-cost aircraft orders and industry leading resilience, will (we believe) underpin a decade of profitable growth for Ryanair as we grow to 300m passengers by FY34. 

FY24 BUSINESS REVIEW:

Revenue & Costs:
FY24 scheduled revenue increased 32% to €9.15bn.  Traffic grew 9% to 183.7m while ave. fare rose 21% to €49.80, thanks to a record H1 and strong Easter traffic in late Mar., offset by softer than expected Q3 fares and load factors (following the sudden, but welcome, removal of Ryanair flights from many OTA Pirate websites in early Dec.).  Ancillary sales increased 12% to €4.30bn (c.€23.40 per passenger).  Total FY24 revenue rose 25% to €13.44bn.  Operating costs increased 24% to €11.38bn, primarily due to a 32% increase in fuel costs, higher staff costs (incl. pay restoration, crew, engineering & handler pay rises, higher crewing ratios and pilot productivity pay as we improve operational resilience) and Boeing delivery delays.  More importantly, the widening cost gap between Ryanair and our EU competitors (which is further enhanced by Ryanair’s low-cost financing and net interest income) remains a growing competitive advantage.

Our FY25 fuel requirements are over 70% hedged at just under $80bbl and 80% of €/$ opex is hedged at $1.11.  This strong hedge position locks-in approx. €450m savings on fuel, and substantially insulates the Group from current fuel price volatility.

Balance Sheet & Liquidity:
Our balance sheet remains one of the strongest in the industry with a BBB+ credit rating (both S&P and Fitch) and €4.12bn gross cash at year-end, despite €2.4bn capex and well over €1bn debt repayments.  Year-end net cash was €1.37bn (PY: €0.56bn), somewhat boosted by Boeing delivery delays.  Our owned B737 fleet (556 aircraft) is fully unencumbered, which significantly widens our cost advantage over competitor airlines, many of whom are exposed to rising aircraft lease and financing costs.

SHAREHOLDER RETURNS:
Our strategy, as Ryanair recovered from Covid, was to prioritise pay restoration and multi-year pay increases for our people, which has now been delivered.  Secondly, in a higher interest rate environment, we intended to pay down remaining debt as it matures in 2025 and 2026, while also financing our aircraft capex from internal resources.  Once these priorities have been secured, Group policy is to prioritise growth to drive shareholder value while maintaining a strong, investment grade, balance sheet, and delivering shareholder returns.

In line with the above Capital Allocation Policy, Ryanair paid an interim dividend of €0.175 per share in Feb. with a final dividend of €0.178 per share due in Sept. following our AGM.  Given current surplus cash, the Board has approved a €700m share buyback now (which will formally launch later this week).  This buyback when completed, will increase the funds Ryanair has returned to shareholders since 2008 to over €7.8bn.

OUTLOOK:
Ryanair expects to grow FY25 traffic by 8% (198m to 200m passengers), subject to Boeing deliveries returning to contracted levels before year-end.  Our cost advantage over competitors continues to widen, even though we expect FY25 unit costs to rise modestly as ex-fuel costs (incl. annualised pay & productivity allowance increases, higher handling & ATC fees and the impact of Gamechanger delivery delays on crewing ratios and fixed costs) is substantially offset by our fuel hedge savings and our rising interest income.  With EU short-haul capacity constrained, S.24 demand is positive, with bookings trending ahead of last year.  Recent pricing is softer than we expected, with Q1 requiring more price stimulation than last year (particularly as half of Easter moved into Mar. and out of Apr.).  While  visibility is limited, and the outcome will be heavily dependent on close-in peak S.24 pricing, we remain cautiously optimistic that peak S.24 fares will be flat to modestly ahead of last summer.  Q4 FY25 will not benefit from an early Easter (as it did in FY24).  It is therefore too early to be able to provide sensible or accurate FY25 PAT guidance.  The final outcome for FY25 will be heavily dependent upon avoiding adverse events during FY25 (such as wars in Ukraine and the Middle East, extensive ATC disruptions or further Boeing delivery delays).”   

 

Ryanair Holdings today (7 Nov.) reported a strong half-year after tax profit of €1.37bn, compared to a pre- Covid (FY20) H1 profit of €1.15bn, due to record Q2 traffic, strong operational reliability and robust summer fares which in Q2 were 14% up on pre-Covid pricing.

During H1:

• Summer traffic recovered strongly to 95.1m from 39.1m (+11% over pre-Covid 85.7m in FY20). 
• H1 fares up 7% on pre-Covid levels (Q2: +14%, offset by lower Q1 fares due to Ukraine invasion).
• 15 new bases and 770 new routes open in H1.
• 73 B737-8200 “Gamechangers” delivered for S.22 – 51 due for S.23 (124 total).
• FY23 fuel 81% hedged at $67bbl (FY24 now 50% hedged at $93bbl).
• Aircraft capex hedged at €/$ 1.24 until FY26.
• Net debt cut to €0.5bn at 30 Sep. (from €1.45bn at 31 Mar.).

Ryanair’s Michael O’Leary, said:

ENVIRONMENT:

“We continue to invest heavily in fuel efficient, environmentally friendly new aircraft technology.  Passengers who switch to Ryanair (from high-fare EU legacy airlines) can reduce their emissions by up to 50% per flight, proving that with Ryanair tourism growth can be delivered in a more sustainable manner.  During S.22 we operated 73 new B737 “Gamechanger” aircraft, which deliver 4% more seats per flight yet burn 16% less fuel and cut noise emissions by up to 40%. 

We continue to invest to accelerate the production of sustainable aviation fuel (SAF).  Our partnership with Trinity College’s Sustainable Aviation Research Centre is now in its second year and its activity has ramped up significantly.  Building on the recent success of our partnership with Neste to power up to one third of our Schiphol flights (AMS) with a 40% SAF blend, we signed a long-term deal with OMV in Sep. to purchase up to 160,000 tonnes of SAF at Ryanair airports across Austria, Germany and CEE.  Ryanair hopes to power 12.5% of flights using SAF and cut our CO₂ per pax/km by 10% to 60 grams by 2030.  As part of our carbon strategy, the Group recently concluded an agreement to retro-fit scimitar winglets on our 409 B737-800NG fleet (an investment valued at over $200m).  This retro-fit program commences in W.22 and will further reduce fuel burn by 1.5%. Through A4E, and the EU, we are campaigning to accelerate reform of European ATC to eliminate needless flight delays, which will substantially reduce fuel consumption and CO₂ emissions.    

In recognition of our progress to date and our industry leading (CDP ‘B’) climate rating, Sustainalytics[1] has ranked Ryanair the No.1 airline in Europe for ESG performance.  In June we submitted Ryanair’s commitment letter to SBTi[2] and we will work with them over the next 2 years to verify our ambitious targets to become net carbon zero by 2050.

SOCIAL:

Pay restoration:

At the outset of the Covid-19 pandemic, Ryanair and its union partners negotiated agreements to protect crew jobs via temporary pay cuts which were to be gradually restored from 2022 to 2025. These agreements successfully delivered job security through the 2 years of the Covid pandemic, as Ryanair maintained not only the jobs but also the licences of our crews.  This investment positioned Ryanair as the best prepared airline for the post-Covid traffic recovery.  By keeping our crews current, and recruiting early, Ryanair avoided the crew shortages which caused so many competitor cancellations and disruptions in Summer 2022. Since Spring 2022 we have worked with our union partners to negotiate accelerated pay restoration as part of long-term deals on pay and rosters which run until 2026 or 2027. Long-term agreements have, to date, been concluded to cover over 90% of our pilots and cabin crew. 

Under these long-term agreements, full pay restoration was brought forward by 24 months to Apr. 2023, subject to our business recovery.  However, following the Group’s strong H1 financial and operational performance, we will now bring forward the full restoration of pay for all crews covered by these long-term agreements to 1 Dec. 2022 (instead of Apr. 2023).  These crews will now receive their full pay restoration in the Christmas payroll. While considerable uncertainty hovers over the remainder of FY23, it has always been our priority to restore pay as soon as our business recovers. These long-term pay agreements with the vast majority of our people have now delivered fully restored pay 28 months earlier than previously agreed, and they will also deliver annual pay increases from 2024 until 2026 as we create thousands of new well-paid crew jobs and grow traffic to 225m p.a. by FY26.

We have written today to the tiny minority of unions representing the less than 10% of pilots and cabin crew who have so far failed to reach agreements on accelerated restoration, urging them to return to negotiations. We look forward to concluding early agreements with them on similar terms to the existing negotiated agreements which will then cover all of our people.

Training, Customer Panel & CSAT:

Ryanair recently took delivery of the first of 8 new CAE full flight simulators (value over $80m).  We will expand our state-of-the art training facilities over the next 3-years and are close to selecting suitable locations for 2 new training centres (a €100m investment) in CEE and the Iberian Peninsula.  Over recent months we’ve continued to invest in engineering and maintenance, and announced new hangar facilities in Malta, Kaunas (Lith.) and Shannon (Ire.).  These new facilities will enable us to create more cadets and apprenticeships for school leavers, bringing through the next generation of highly skilled aviation professionals.

Over 37,000 of our passengers recently applied to join our Customer Panel which has expanded to include reps from Austria, France, Germany, Ireland, Italy, Poland, Portugal, Spain and the UK.  The new Panel met in Dublin in Oct. and provided valuable insights and suggestions to help us to further improve Ryanair’s offers and customer care.  While CSAT scores were impacted by numerous ATC delays/strikes this summer and lengthy airport security queues (particularly in Q1), Ryanair’s operational resilience, reliability and friendly crew meant that we still recorded a very strong 83% rating across H1.

OP. PERFORMANCE & GROWTH:

Our Group airlines delivered an industry leading operations performance and robust post Covid traffic recovery in H1.  This summer we operated at 115% of our pre-Covid capacity, completed over 3,000 daily flights and delivered record traffic across peak S.22, despite unprecedented ATC disruptions and regrettable airport security delays (primarily in Q1).

We had 73 Gamechangers in our fleet for peak S.22.  Our growth is being hampered by Boeing’s inability to meet its delivery schedule in Q3, despite their previous assurances that Ryanair deliveries would be “prioritised”.  We expect Boeing will only deliver 10 or 12 of the contracted 21 Gamechangers due before Christmas.  Boeing assure us that they will deliver all scheduled 51 Gamechangers ahead of peak S.23, although there is a risk that some of these deliveries could slip.  We are planning FY24 growth based on 51 extra aircraft for peak S.23 and we continue to recruit and train substantial numbers of pilots, cabin crew and engineers.  During H1, Ryanair announced 100 new routes for W.22 and most of our S.23 capacity is now on sale on www.ryanair.com. Our Routes teams continue to lock-in long term traffic recovery growth deals with airport partners across Europe which will reinforce Ryanair’s market share growth and cost leadership in Europe.

Over the past 3 years, numerous airlines went bankrupt and many legacy carriers (incl. Alitalia, TAP, SAS and LOT) significantly cut their fleets and passenger capacity, even while ‘doping’ on multi-billion-euro State Aid packages.  These structural capacity reductions have created enormous growth opportunities for Ryanair to deploy our new, fuel efficient, B737 Gamechangers and as a result our market shares have surged across major EU markets.  Our reliability, lowest (ex-fuel) unit costs, very strong fuel and US$ hedges, fleet ownership and strong balance sheet ensures that the Group is well placed to grow profitability and traffic to 225m p.a. by FY26.     

H1 FY23 BUSINESS REVIEW:

Revenue & Costs:

H1 scheduled revenues increased almost 250% to €4.42bn as traffic recovered strongly from 39.1m to 95.1m (at a 94% load factor).  Record Q2 traffic and strong peak summer fares (+14% over pre-Covid) offset a weak Easter in Q1, which saw traffic and fares damaged by Russia’s invasion of Ukraine in late Feb.  Ancillary revenue delivered a solid performance with spend increasing to €23 per passenger.  Total revenue jumped by over 200% to €6.62bn.

While sectors more than doubled and traffic increased 143%, operating costs rose just 126% to €4.98bn (incl. a 205% increase in fuel to €2.18bn), driven by lower variable costs, higher load factors and improved fuel burn from our Gamechanger fleet.  Cost per passenger (ex-fuel) fell below €30 in H1 (slightly lower than the same period pre-Covid). 

Our FY23 jet fuel requirements are 81% hedged at an ave. of $67bbl and during H1 we raised our FY24 jet fuel hedges to 50% at approx. $93bbl.  Forex is also well hedged with over 80% of FY23 €/$ opex hedged at 1.14 and almost 20% of FY24 hedged at 1.08.  Our Boeing order book is fully hedged at €/$ 1.24 out to FY26.  This very strong hedge position helps insulate Ryanair from recent spikes in fuel prices and the US$ and gives our Group airlines a huge cost advantage over our EU competitors, especially this winter and into FY24.

Balance Sheet & Liquidity:

Ryanair’s balance sheet is one of the strongest in the industry with a BBB (stable) credit rating (S&P and Fitch).  Net debt at 30 Sep. has fallen to €0.5bn (from €1.45bn at 31 Mar.), despite €0.9bn capex.  Almost all of the Group’s fleet of B737s are owned and over 90% are unencumbered which widens our cost advantage at a time when interest rates and leasing costs of our competitors are rising. Our focus over the next year is the repayment of €1.6bn of maturing bonds while returning our balance sheet to a broadly zero net debt position.  The strength of our balance sheet ensures that the Group is well positioned to exploit the many growth opportunities that are currently emerging as we grow to 225m passenger p.a. by FY26.

RECESSION & PRICE INFLATION:

Concerns about the impact of recession and rising consumer price inflation on Ryanair’s business model have been greatly exaggerated in recent months.  As the lowest cost producer in Europe, we expect to grow strongly in a recession as consumers won’t stop flying, but rather they will become more price sensitive.  Like Aldi, Lidl, Ikea and other price leaders our very strong post Covid recovery shows that price will continue to drive market share gains as we add low cost, more fuel efficient, aircraft to our fleet over the next 4 years.  As Europe recovers from the 2-year Covid pandemic there has been a considerable contraction of short haul capacity, much of which will not return in the medium term.  Most of our EU competitors have cut capacity by up to 20% this Winter while Ryanair will offer 10% more seats than pre-Covid. 

As our H1 traffic and market share growth shows, millions of passengers are switching to fly with Ryanair for our lower prices, our industry leading reliability and our greener, fuel efficient aircraft. Consumer propensity to travel remains high in Europe as a result of full employment, rising wages and 2 years of pent-up-demand and accumulated savings while people were ‘locked up’ during Covid.  We expect these strong fundamentals will continue to underpin robust traffic and ave. fare growth for the next 18-months at least, and Ryanair will be the main beneficiary of these trends so long as there are no negative developments this Winter such as Covid variants or Ukraine.

OUTLOOK:

The recovery for the remainder of FY23 remains fragile and could yet be impacted by new Covid variants or adverse geopolitical events such as Ukraine.  However forward bookings (both traffic and fares) remain strong over the Oct. school mid-terms and into the peak Christmas travel period.  We hope to avoid any repeat of last year’s Omicron lockdowns which damaged last Christmas at such short notice. As is normal, at this time of year, we have almost zero visibility into Q4 which is traditionally our weakest quarter and which this year doesn’t have any Easter benefit.

While we remain dependent on Boeing meeting their delivery commitments, especially for Christmas extras and Spring mid-term, we are modestly raising our FY23 traffic guidance to 168m passengers (previously 166.5m), up 13% on our pre-Covid traffic.  We remain hopeful that full-year fares will remain ahead of FY20 (pre-Covid) by a mid-to-high single digit percentage but we remain cautious that yields could be impacted at very short notice in H2 as they were last year by Omicron in late Nov. which damaged Christmas and the Ukraine invasion on 24 Feb. which so clearly damaged Mar. and Apr. traffic.  If we are fortunate to avoid such negative events like Covid and Ukraine in H2 then, thanks to our very strong traffic recovery, our advantageous fuel and currency hedges and our widening cost and market share leadership over competitors, we are hopeful that we will minimise our winter losses which would enable us to deliver an FY23 PAT (pre-exceptionals) in a range of €1.00bn to €1.20bn.  This cautious guidance will remain hugely dependent on not suffering adverse events this Winter (as we did last, which were clearly beyond our control).”

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[1] Sustainalytics – a leading independent ESG & corporate governance research, ratings & analytics firm.

[2] Science Based Targets initiative – a collaboration between CDP, the United Nations Global Compact, World Resources Institute & the Worldwide Fund for Nature.  It helps companies to set emission reduction targets in line with climate science & the Paris Agreement goals.

Ryanair Holdings plc today (Tues, 4 Oct) released Sept. traffic statistics as follows: