Ryanair Holdings plc held an Investor Day in London. At this meeting the airline updated investors on current trading and also confirmed the exercise of 9 further Boeing 737-800…
Ryanair Holdings plc held an Investor Day in London. At this meeting the airline updated investors on current trading and also confirmed the exercise of 9 further Boeing 737-800 options for delivery in 2007 along with the planned sale (in 2007) of 5 Boeing 737-800`s purchased in 1999.
Speaking in London, Michael O`Leary, Chief Executive Officer said:
Current trading continues to be in line with expectations. Higher fuel prices over the summer months have been partly offset by a combination of other cost reductions and slightly more benign yield environment. Passenger volumes and load factors have been strong over the summer and in August we achieved a significant milestone by carrying more passengers on our short haul European network than British Airways (now just the worlds 2nd favourite airline) did on their entire worldwide network.
Looking forward to the winter we remain cautious. We expect yields to benefit from the multiple fuel surcharges imposed by the high fare carriers across Europe. However, we anticipate that the fare differential between Ryanair and the flag carriers will be partially eroded as the fuel surchargers are forced to lower their underlying fares to compete with Ryanair`s lower prices. We therefore remain cautious but comfortable with our previous guidance for the remainder of this fiscal year as we anticipate strong load factors and passenger volumes but as expected, at slightly lower yields.
The recent announcement of the cessation of the Boeing strike will in turn enable our aircraft deliveries to be back on track by the end of December 2005. We anticipate there will be no material adverse impact on the company`s financial performance or passengers carried arising from the strike.
I am also pleased to announce that we have exercised options to purchase 9 Boeing 737-800`s with a value of over $500m dollars for delivery in late 2007, (3 in September, 2 in October and 4 in November). We also plan in late 2007 to sell on the first 5 of our older Boeing 737-800`s, which were delivered in 1999. This is a continuation of Ryanair`s strategy of operating the youngest fleet in Europe, with the lowest unit operating costs and best technical reliability, thereby ensuring that Ryanair remains the number 1 on-time major airline in Europe. These 4 incremental option aircraft will in turn enable Ryanair to develop even more new routes while we continue to lead the low fare revolution across Europe.
The company currently operates a fleet of 83 Boeing 737-800`s and 9 Boeings 737-200`s. The exercise of these 9 options and the planned sale during late 2007 of the 5 aircraft acquired in 1999, combined with the existing firm Boeing commitments will in turn lead to Ryanair`s fleet increasing by 151 aircraft to 234 aircraft by 2012. In addition the company has options over a further 179 aircraft for delivery between 2008 and 2014.
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