Load Factor Rises To 80% As Eu Covid Certs Roll Out
Ryanair Holdings plc today (4 August) released July traffic statistics as follows:
| JULY 2020 | JULY 2021 | LOAD FACTOR | |
| Ryanair Group | 4.4m | 9.3m | 80% |
| GUESTS | LOAD FACTOR | |
| June | 5.3m | 72% |
| July | 9.3m | 80% |
Ryanair operated over 61,000 flights in July with an 80% load factor.
Customers Can Now Fully Offset Their Co2 Emissions
Ryanair, Europe’s greenest major airline, has today (28 July) announced the launch of its carbon calculator, a new digital tool that will enable consumers to fully offset their emissions on their Ryanair flight. This new feature will calculate the carbon emissions per passenger on every Ryanair route and will allow customers to pay the full carbon cost of their flight contributing to environmental initiatives.
With this development, Ryanair is delighted to expand its carbon offset programme which currently allows customers to contribute €2 towards carbon offset projects. These contributions support several environmental initiatives, including Renature Monchique – a reforestation project in the Algarve; the distribution of energy-efficient cookstoves in Uganda by First Climate; Balikesir’s Wind Power Plant Project in Turkey and Improved Kitchen Regimes in Malawi powered by CO2 Balance (the latter two in partnership with Shell).
Since Ryanair’s voluntary carbon offset scheme commenced, customers have contributed over €3.5m to environmental projects and Ryanair believes the expansion of its carbon offset programme will be greatly welcomed by its customers throughout Europe. Ryanair already has the lowest CO2 emissions per passenger/km of any major airline in Europe (66g) and by switching to Ryanair, passengers can now further reduce their CO2 emissions.
Although Ryanair’s CO2 emissions per passenger/km are already the lowest of any major EU airline, it believes that aviation must play a leading role in addressing climate change, and is placing an increased emphasis on mitigating how its business impacts the environment. By 2030, Ryanair’s goal is to power 12.5% of its flights with sustainable aviation fuels – this together with the $22bn investment in new Boeing 737 8-200 ‘Gamechanger’ aircraft will significantly reduce its CO2 and noise emissions over the next decade and help Ryanair achieve its aim of being a carbon neutral airline by 2050.
Director of Sustainability at Ryanair, Thomas Fowler said:
“Hundreds of thousands of Ryanair customers every year are already choosing to contribute and support the environment by selecting carbon contribution at their time of booking. The expansion of our Carbon Offset Scheme to enable our customers to fully offset the CO2 of their Ryanair flight will greatly enhance the capabilities of each of our environmental partners who are actively working on carbon offsetting programs.
Sustainability and environmental impact are considered in every business decision made in Ryanair and we are truly dedicated to being a net carbon neutral airline by 2050. Ryanair has the youngest fleet age of any major airline and this will further reduce now that we have taken delivery of our first Boeing 737-8200 ‘Gamechanger’ aircraft – which are more fuel efficient [burning 16% less fuel per seat]; will lower noise emissions by 40% and have 8 more seats per aircraft. Ryanair has set a goal to power 12.5% of all flights with sustainable aviation fuels by 2030, having recently announced a partnership with Trinity College Dublin to engage in best-in-class research on this. We only operate point-to-point routes, have industry leading load factors and are delighted to have already removed over 80% of non-recyclable plastics from our flights.
Ryanair is committed to being a net carbon neutral airline by 2050 and the expansion of our offset scheme will further pave our way to achieving this goal while helping our environmental partners further their carbon reduction programs.”
Ryanair Holdings plc today (26 July) reported a Q1 loss of €273m, compared to a PY Q1 loss of €185m. Features of this Q1 performance included:
| Q1 – Group | 30 Jun. 2020 | 30 Jun. 2021 | Change |
| Customers | 0.5m | 8.1m | +7.6m |
| Load Factor | 61% | 73% | +12pts |
| Revenue | €125m | €371m | +196% |
| Op. Costs | €313m | €675m | +116% |
| Net Loss | (€185m) | (€273m) | -47% |
Ryanair Holdings Group CEO, Michael O’Leary, said:
“COVID-19:
Covid-19 continued to wreak havoc on our business during Q1 with most Easter flights cancelled and a slower than expected easing of EU Govt. travel restrictions into May and June. Significant uncertainty around travel green lists (particularly in the UK) and extreme Govt. caution in Ireland meant that Q1 bookings were close-in and at low fares. We kept aircraft and crews current throughout the quarter and recruited additional cabin crew to enable us recover quickly in Q2 as Covid restrictions ease. The 1st July rollout of EU Digital Covid Certificates (“DCC”) and the scrapping of quarantine for vaccinated arrivals to the UK from mid-July has seen a surge in bookings over recent weeks. Pricing remains below pre Covid-19 levels and there will continue to be great value for Ryanair guests travelling this summer as we focus on recovering traffic, jobs and tourism across our European network. Based on current (close-in) bookings, we expect traffic to rise from over 5m in June to almost 9m in July, and over 10m in Aug., as long as there are no further Covid setbacks in Europe. We will continue our load active/yield passive strategy as we recover load factors over the course of FY22.
The Covid-19 crisis has triggered the collapse of many European airlines including Flybe, Norwegian, Germanwings, Level and Stobart and led to substantial capacity cuts at many others including Alitalia, TAP, LOT, SAS, etc. The tsunami of State Aid from EU Govts. to their insolvent flag carriers (Alitalia, AirFrance/KLM, LOT, Lufthansa, SAS, TAP and others) will distort EU competition and prop up high cost, inefficient, flag carriers for many years. We expect intra-European capacity to be materially lower for the foreseeable future. This will create growth opportunities for Ryanair to extend airport incentives, as the Group takes delivery of 210 new Boeing 737 “Gamechanger” aircraft. We are encouraged by the high rate of vaccinations across Europe. If, as is presently predicted, most of Europe’s adult population is fully vaccinated by Sept., then we believe that we can look forward to a strong recovery in air travel for the second half of the fiscal year and well into S.22 – as is presently the case in domestic US air travel.
THE ENVIRONMENT & CUSTOMER SERVICE:
Ryanair has repeatedly shown we can grow traffic while reducing our impact on the environment. Every passenger that switches to Ryanair from Europe’s legacy airlines reduces their CO₂ emissions by almost 50% per flight. Over the next 5-years our traffic will grow to 200m p.a. This will be achieved on a fleet that balances the demand for low fares with the need for sustainable flying. Our new B737-8200 “Gamechanger” aircraft (a $22bn+ investment) offers 4% more seats, but delivers 16% lower fuel burn and 40% lower noise emissions, helps to meaningfully lower Ryanair’s CO₂ and noise footprint over the next decade.
We continue to work actively with the EU, fuel suppliers and aircraft manufacturers to incentivise sustainable aviation fuel (SAF) use. We are working with A4E and the EU Commission to accelerate reform to the Single European Sky, to minimise ATC delays and lower fuel consumption and CO₂ emissions. Last year Ryanair received an industry leading “B-” climate protection rating from CDP[1], and we are working to improve this to an “A” rating over the next 2 years. In April, Ryanair established a Sustainable Aviation Research Centre partnership with Trinity College Dublin to accelerate the development of SAFs. Ryanair’s goal is to power 12.5% of our flights with SAF by 2030 (well ahead of the 5% recently mandated by the EU Fit for 55 Proposals). Earlier this month we launched a new carbon calculator enabling customers to (voluntarily) offset their carbon footprint on every Ryanair flight that they book. These initiatives will help Ryanair achieve our target of lowering CO₂ per passenger/km by 10% to just 60 grams by 2030.
In July, Ryanair announced a 7 member Customer Advisory Panel. Following over 10,000 applications from across 16 countries, the final panel represents a diverse cross-section of Ryanair customers (with members from Germany, Ireland, Italy, Poland, Spain and the UK). We will welcome this Panel to Dublin in Sept. for our first Customer Advisory meeting, with future meetings to take place in other major European cities. The advice and input from the Panel will help shape Ryanair’s continuing customer improvements programme, re-enforcing our commitment to delivering the lowest fares, on-time flights and a great customer experience as the Group returns to strong post Covid growth.
Q1 FY22 BUSINESS REVIEW:
Revenue & Costs
Q1 scheduled revenue increased 91% to €192m due to a rise in traffic from 0.5m to 8.1m (at a 73% load factor). While traffic recovered significantly (compared to PY Q1), the cancellation of Easter traffic and the delayed relaxation of Govt. travel restrictions across the EU into May and June required significant price stimulation. Ancillary revenue performed well, generating approx. €22 per passenger, as more guests choose priority boarding and reserved seating. As a result, total revenue increased by almost 200% to over €370m in Q1. A sevenfold increase in sectors saw operating costs increase 116% to €675m, driven primarily by variable costs such as fuel, airport & handling and route charges. The Group’s fuel requirements are just under 60% hedged for FY22 at $565 per metric tonne and approx. 35% hedged for FY23 at $600. Carbon credits are fully hedged for FY22 and approx. 35% hedged for FY23 at under €24 per EUA (compared to forward rates of over €50).
During Q1 our Route Development team continued their work with airport partners across Europe, and have negotiated lower airport costs, recovery incentives and the extension of many low cost airport growth deals. In addition to previously announced deals (with Billund, Riga, Stockholm, Zadar & Zagreb) and long term extensions of low-cost growth deals in London Stansted (to 2028), Milan Bergamo (to 2028) and Brussels Charleroi (to 2030), the Group has doubled its capacity in Rome (Fiumicino), added new routes to Helsinki and will launch new bases in Turin (Italy) and Agadir (Morocco) this winter.
In June Ryanair took delivery of our first 3 B737-8200 “Gamechanger” aircraft from our 210 orderbook. The Gamechangers have 4% more seats, 16% lower fuel burn and 40% lower noise emissions and will, we believe, further widen the cost gap between Ryanair and all other European airlines for the next decade. While it is early days (and load factors have not yet recovered to pre Covid levels) we are very pleased with the operational performance and lower fuel burn recorded on these aircraft. The feedback from our guests is resoundingly positive as they enjoy the extra leg room and 40% less noise. We hope to increase our fleet of Gamechangers to over 60 in advance of S.22 and these new aircraft will drive our traffic growth to 200m p.a. by FY26.
Balance Sheet & Liquidity
Ryanair’s balance sheet is one of the strongest in the industry with a BBB credit rating (S&P and Fitch), €4.06bn cash and almost 90% of our B737 fleet unencumbered at quarter end. In May Ryanair issued a €1.2bn 5-year, unsecured, bond at a record low coupon of 0.875%. In June the Group repaid its maturing €850m (2014) 1.875% bond. Strong operating cashflows and supplier reimbursements drove a €0.62bn reduction in net debt to €1.66bn at 30 June (31 March: €2.28bn). This balance sheet strength enables the Group to capitalise on the many growth opportunities that will be available in Europe in the post Covid-19 recovery.
OUTLOOK:
FY22 continues to be challenging, with Covid-19 travel restrictions prolonging uncertainty. Following the 1st July rollout of EU DCC’s (and the relaxation of the UK’s quarantine rules) for fully vaccinated persons, our Group has seen Q2 bookings recover strongly (albeit at low fares). With the booking curve remaining very close-in and fares well below pre Covid-19 levels, visibility for the remainder of FY22 is close to zero. It therefore remains impossible to provide meaningful FY22 guidance at this time. We believe that FY22 traffic has improved to a range of 90m to 100m (previously guided at the lower end of an 80m to 120m passenger range) and (cautiously) expect that the likely outcome for FY22 is somewhere between a small loss and breakeven. This is dependent on the continued rollout of vaccines this summer, and no adverse Covid variant developments.
As we look beyond the Covid-19 recovery, and the successful completion of vaccination rollouts, the Ryanair Group expects to have a materially lower cost base, a very strong balance sheet and industry leading traffic recovery. Our new B737 “Gamechanger” aircraft will reduce fleet costs and unit costs (thanks to its attractive pricing, higher seat density and 16% lower fuel burn) for the next decade. They will enhance revenue opportunities with 4% more seats, enabling the Group to fund lower fares and capitalise on the many growth opportunities that are now available across Europe, especially where competitor airlines have substantially cut capacity or failed. We are seeing a strong rebound of pent up travel demand into Aug. & Sept. and we expect this to continue into the second half of FY22, with pre Covid-19 growth planned to resume strongly in summer 2022.”
Ryanair today (14 July) noted the EU General Court’s ruling on discriminatory State aid favouring Austrian Airlines, a subsidiary of the Lufthansa Group which in June 2020 was granted €150m aid by the Austrian government. Since the start of the Covid-19 pandemic, Austrian Airlines has received €600m in State aid and the Lufthansa Group more than €11bn.
While the Covid-19 crisis has caused damage to all airlines that contribute to the economy and the connectivity of Austria, the Austrian government decided to support only its inefficient former “national” airline (now German-owned), discriminating against all others in clear breach of the fundamental principles of EU law. Ryanair subsequently referred the European Commission’s approval of this €150m illegal subsidy to Austrian Airlines to the EU General Court in November 2020. Ryanair will appeal today’s General Court judgment to the Court of Justice of the EU.
A Ryanair spokesperson said:
“One of the EU’s greatest achievements is the creation of a single market for air transport. The European Commission’s approval of State aid to Austrian Airlines went against the fundamental principles of EU law and have turned back the clock on the process of liberalisation in air transport by rewarding inefficiency and encouraging unfair competition.
Ryanair is a truly European airline and a champion of competition and consumers. Our instinct in a crisis is to seek efficiencies and cost savings, to offer more routes at lower fares – while remaining Europe’s greenest airline. We will now ask the EU Court of Justice to overturn this unfair subsidy.
If Europe is to emerge from this crisis with a single market that serves the consumers and the economy, airlines must be allowed to compete on a level playing field. Undistorted competition weeds out inefficiency and drives low fares and choice. Subsidies, on the other hand, encourage inefficiency and will harm consumers for decades to come.”
Ryanair, Europe’s No. 1 airline, today (12th July) announced a recruitment drive for 2,000 new pilots to crew aircraft deliveries over the next 3 years as Ryanair recovers and rebuilds from the Covid-19 pandemic.
Ryanair has now taken delivery of its first Boeing 737-8200 Gamechanger aircraft, which help Ryanair lower costs, cut fuel consumption and lower noise and CO2 emissions. This investment in new aircraft arriving through the recovery phase of the Covid-19 Pandemic deepens Ryanair’s environmental commitment as Europe’s greenest, cleanest major airline and also creates these exciting opportunities for experienced and aspiring pilots to secure the best pilot jobs in aviation. Ryanair Pilots enjoy great pay, industry leading five on, four off rosters, outstanding career development and world class training. As part of Ryanair’s career development initiatives, most Captain vacancies created by these new aircraft deliveries will be filled by internal promotions which creates opportunities for replacement First Officers, and ultimately new cadet pilots who can kickstart their pilot career with Ryanair so they can grow into the next generation of Ryanair’s First Officers and Captains.
Training courses take place through 2021 to be ready for Summer 2022 for positions all over Europe. Ryanair has partnered with Airline Flight Academy in Dublin to deliver Boeing 737 Training Courses as part of this recruitment drive. Aspiring pilots can also check out careers.ryanair.com/pilots for details of Ryanair Mentored training programmes.
Ryanair’s People Director Darrell Hughes said:
“As we take delivery of more than 210 Boeing 737-8200 gamechanger aircraft, Ryanair will recruit 2,000+ pilots over the next 3 years to fill positions created by this growth. This is great news for experienced and aspiring pilots but also for our own pilots who will enjoy fast tracked promotions. Throughout the pandemic, Ryanair has worked closely with our people to save jobs and we are delighted to start planning for a return to growth over the coming years as we recover from the Covid-19 crisis and grow to 200m guests by FY2026’’.
Editor’s note: Candidates interested in these opportunities should visit careers.ryanair.com/pilots for further information.
Take Your Friend On A Break For Free!
Ryanair, Europe’s No. 1 airline, is today (Wed, 7th July) launching a ‘Buy One Get One Free’ offer on 1,100 routes across its network for travel in July 2021. As vaccination rollouts progress successfully and international travel resumes, Europeans are set to take that long-awaited break this summer and Ryanair is offering now the deal of all deals – flights for free!
This amazing offer applies to Value Fare bookings with more than one passenger, travelling on selected routes to top destinations this July (T&Cs apply*). Customers only have until midnight tonight (7th July) to avail of this deal and should log onto the Ryanair.com website to avail of these limited flights.
Ryanair’s Director of Marketing, Dara Brady, said:
“Who doesn’t love a freebie? Summer is here and as vaccination programmes continue, our customers are keen to visit the most popular European hotspots this month. We’re launching our unmissable 24h ‘Buy One Get One Free’ offer, available on over 1,100 Ryanair routes. Book today for travel in July and get a second ticket on the same flight for free.
Customers can book a much-deserved holiday or city break to the best European destinations, bringing a friend or family member completely free. To avail of this special offer, customers must act fast and visit the Ryanair.com website to book their flights before midnight, tonight 7th July.”
Ryanair, Europe’s no.1 airline for low fares, choice, on-time flights and customer service, today (06 July) announced its Customer Advisory Panel, comprising seven customers from six European countries. Having received over 10,000 applicants from 16 countries across Europe – Ryanair’s seven successful candidates will travel to Dublin for the first of the Customer Advisory Panel meetings in September 2021, coming together to provide feedback and recommendations that will help Ryanair continue to improve its guest services.
While interest was strong across all markets, the UK trailblazed ahead with almost a third of applicants, closely followed by Ireland (20%), Italy (14%), Spain (12%), Germany (9%), France (7%) and Poland (6%).
The seven selected panellists include:
Ryanair will welcome the panel to Dublin in September for the first of the Customer Advisory Panel meetings, with future meetings to take place in other major European cities such as Madrid, Rome, Berlin, Warsaw and more. Flights and hotel accommodation for panel members (and a partner) will be provided and panel members will have the opportunity to explore Dublin City on their 2-night trip.
The input from the Panel will help shape Ryanair’s ongoing customer improvements program, re-enforcing Ryanair’s commitment to delivering the lowest fares, on-time flights and great customer service.
Ryanair’s Director of Marketing & Digital, Dara Brady said:
“We were delighted with the level of interest that this Customer Advisory Panel attracted all across Europe, having received over 10,000 applications from across the 16 countries in which we operate and are really looking forward to meeting the successful candidates in Dublin this September. The panel is a diverse cross-section of Ryanair customers, equipped with valuable insights, who possess great energy and we are excited to have them on board to help us drive improvements in Ryanair’s customer care and service.
While Ryanair cannot be beaten for low fares, choice and on-time flights, as we grow to 200m passengers p.a, we are determined to keep listening to our customers and improving our service to them. As Ryanair emerges from the Covid-19 pandemic, customers can look forward to even more service improvements on the youngest and greenest aircraft at even lower prices!”