Tag Archives: Boeing 737-8 MAX 8-200

Ryanair’s board approves an accelerated post COVID growth plan

Ryanair Boeing 737-8 MAX 8 (200) EI-HEZ (msn 62312) PAE (Nick Dean). Image: 953051.

Ryanair has made this announcement:

Based on proxy votes already received, Shareholders have approved all resolutions and will receive a detailed update on the Airline Group’s post-Covid recovery plans over the next 5 years. Subject to no adverse Covid developments, and vaccinations remaining at 90%+ across Europe, Ryanair will take delivery of 210 Boeing 737 Gamechanger aircraft over the next 5 years. These aircraft will deliver industry lowest costs, reduced emissions, and will enable Ryanair accelerate its post-Covid growth, as opportunities open up at primary and secondary airports all over Europe, particularly where legacy carriers have failed or reduced fleet sizes as a result of Covid and State Aid.

Ryanair Group airlines now expect to deliver more rapid traffic growth over the next 5 years, and have raised their 5 year growth forecast from 33% to 50%. As a result, Ryanair’s pre-Covid traffic of 149m is expected to grow to over 225m guests by March 2026, which is 25m passengers p.a. higher than the previous target of 200m.

Ryanair’s Michael O’Leary said:

The performance of the Boeing 737 Gamechanger aircraft this summer has exceeded our expectations. Operational reliability, fuel consumption, and lower CO2 emissions have so far exceeded guidelines with very positive passenger and crew feedback to these new, more fuel efficient, quieter aircraft.

With these new deliveries, Ryanair will open 10 new bases across Europe this year as we work with airport partners to help them recover traffic & jobs post Covid, and take up slot opportunities that are being vacated by competitor airlines who have collapsed or significantly reduced their fleet sizes.

Ryanair expects to create over 5,000 new jobs for pilots, cabin crew and engineers over the next 5 years, and the Group is excited to have, earlier this week, opened a €50m Aviation Training Centre in Dublin, with 2 further high quality training centers planned for Spain and Poland over the next 5 years.

The Covid-19 pandemic has delivered an unprecedented blow to Europe’s aviation and tourism industries. Only Ryanair has used this crisis to place significantly increased aircraft orders, to expand our airport partnerships, and to secure lower operating costs so that we can pass on even lower fares to our guests, so that together with our airport partners, we can recover strongly from the Covid pandemic and deliver higher than expected growth in both traffic and jobs over the next 5 years.”

In other news, Ryanair announced a new Winter route from Manchester to Grenoble as part of its UK Winter 2021 Schedule.

Ryanair will operate a weekly flight from Manchester to the popular French ski destination – Grenoble, from December 18 to the end of March 2022.

Top Copyright Photo: Ryanair Boeing 737-8 MAX 8 (200) EI-HEZ (msn 62312) PAE (Nick Dean). Image: 953051.

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Photo: Buzz by Ryanair (2nd) Boeing 737-8 MAX 8 (200) SP-RZC (msn 62315) BFI (Nick Dean). Image: 954784.

Airline Color Scheme - Introduced 2020

Copyright Photo: Buzz by Ryanair (2nd) Boeing 737-8 MAX 8 (200) SP-RZC (msn 62315) BFI (Nick Dean). Image: 954784.

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Ryanair’s July traffic doubles from 4.4 million to 9.3 million passengers

Ryanair Boeing 737-8 MAX 8 (200) EI-HEZ (msn 62312) PAE (Nick Dean). Image: 953051.

Ryanair Holdings plc released its 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.

Top Copyright Photo: Ryanair Boeing 737-8 MAX 8 (200) EI-HEZ (msn 62312) PAE (Nick Dean). Image: 953051.

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Ryanair reports a fiscal first quarter loss of €273 million ($322 million)

Ryanair Boeing 737-8 MAX 8 (200) EI-HGP (msn 62330) PMI (Javier Rodriguez). Image: 954443.

Ryanair made this announcement:

Ryanair reported a fiscal first quarter loss of €273 million, compared to a previous year first quarter loss of €185 million. Features of this Q1 performance included:

 

  • Q1 traffic rebounded from 0.5m to 8.1m as capacity recovered in May & June.
  • 1st B737-8200 “Gamechanger” delivered in June (12 for peak S.21).
  • Strong June cash balance of €4.06bn (up from €3.15bn at 31 Mar.).
  • €1.2bn 5-year unsecured bond issued in May at record low 0.875% coupon.
  • Net debt fell from €2.28bn at 31 Mar. to €1.66bn at 30 June (€850m bond repaid in June).
  • 379 new routes & 10 new bases announced for 2021.
  • Customer Advisory Panel appointed – 1st meeting in Sept.

 

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 traveling 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 Governments 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 737-8 MAX 8 “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 incentivize sustainable aviation fuel (SAF) use.  We are working with A4E and the EU Commission to accelerate reform to the Single European Sky, to minimize 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 program, 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 B737-8 (200) “Gamechanger” aircraft from our 210 order book.  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 capitalize 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.”

Top Copyright Photo: Ryanair Boeing 737-8 MAX 8 (200) EI-HGP (msn 62330) PMI (Javier Rodriguez). Image: 954443.

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Ryanair sees a jump in traffic in June

Ryanair Boeing 737-8 MAX 8 (200) N1779B (EI-HGP) (msn 62330) BFI (Joe G. Walker). Image: 954299.

Ryanair reported its traffic in June with an increase from 400,000 to 5.3 million passengers:

72% Load Factor As Covid Vaccines See EU Recovery Begin

Ryanair Holdings plc on July 2 released its June traffic statistics as follows:

   JUN 2020 JUN 2021 LOAD FACTOR
Ryanair Group  0.4m 5.3m 72%

QUARTER 1 STATS:

  GUESTS LOAD FACTOR
Apr 1.0m 67%
May 1.8m 79%
Jun 5.3m 72%
Q1 TOTAL 8.1m 73%

Ryanair operated over 38,000 flights in June with a 72% load factor.

Top Copyright Photo:  Ryanair Boeing 737-8 MAX 8 (200) N1779B (EI-HGP) (msn 62330) BFI (Joe G. Walker). Image: 954299.

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The first Ryanair Boeing 737-8 MAX 8 (200) finally departs from Seattle

1st MAX, delivered on June 16, 2021

Ryanair has taken delivery of its first (delayed) Boeing 737-8 MAX 8 (200). The 197-seat high-density aircraft (the pictured EI-HEN, top) departed from Boeing Field this morning shortly after 1 am local time. It is expected to arrive later today in Dublin.

Ryanair on June 16 issued this statement:

Ryanair on June 16 took delivery of its first Boeing 737-8200 “Gamechanger” aircraft in Seattle, Washington. The aircraft flew overnight from Seattle and will land in Dublin Airport later this afternoon. This is the first delivery of Ryanair’s 210 firm order of these revolutionary “Gamechanger” aircraft, which is an investment in new technology, valued at over $22 billion. These new aircraft will carry 4% more passengers but reduce fuel consumption by 16% per seat, lower noise emissions by 40% and lower CO2 emissions by a similar amount.

Ryanair’s Michael O’Leary said:  

“We are delighted to take delivery of our first new technology Gamechanger aircraft. These new Boeing 737 aircraft will help Ryanair lower costs, cut fuel consumption and lower noise and CO2 emissions as we invest heavily in new technology to deepen our environmental commitment as Europe’s greenest, cleanest major airline. Each 737 aircraft offers 197 seats (compared to our 189-seat current 737 fleet). However, our customers will enjoy more leg room, new Boeing “Sky Interiors” and lower fares, while reducing their environmental footprint by switching to these new aircraft.

Due to regrettable delivery delays, we expect to take delivery of just 12 of these aircraft during Summer 2021, with 6 delivering in Ryanair colors and 6 in Malta Air colors.

Ryanair expects to take delivery of an additional 50 of these 737 “Gamechanger” aircraft before Summer 2022, which will enable the Ryanair Group to rebound strongly, offering new routes, lower fares, and rapid traffic recovery to many partner airports across Europe as the tourism industry rebuilds from the devastating impact of the Covid-19 pandemic in 2020/2021”.

Top Copyright Photo: Ryanair Boeing 737-8 MAX 8 (200) EI-HEN (msn 62301) PAE (Nick Dean). Image: 953050.

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Ryanair welcomes EU Court ruling on Condor state aid

Ryanair Boeing 737-8 MAX 8 (200) EI-HEN (msn 62301) PAE (Nick Dean). Image: 953050.

Ryanair today welcomed the EU General Court’s annulment of the European Commission’s approval of State aid by Germany to Condor.  In April 2020, the German government granted a €550m loan to Condor, which had already benefited from a €380m rescue loan from Germany in 2019 following the bankruptcy of its parent company, Thomas Cook.

While the Covid-19 crisis has caused damage to all airlines that contribute to the economy and the connectivity of Germany, the German government decided to support only its inefficient “national” airlines, including Condor.

Ryanair referred the European Commission’s approval of this €550m illegal subsidy to Condor to the EU General Court in 2020.

A Ryanair spokesperson said:

“The German government aid to Condor – both in 2019 and 2020 – went against the fundamental principles of EU law and has distorted the market to the detriment of consumers. Today’s ruling is an important victory for consumers and competition.

During the Covid-19 pandemic over €30 billion in discriminatory State subsidies has been gifted to EU flag carriers.  Unless halted by the EU Courts in line with today’s ruling, the effects of market distortion caused by this State aid will be felt for decades.  If Europe is to emerge from this crisis with a functioning single market, the European Commission must stand up to national governments and stop rubber stamping discriminatory State aid to inefficient national airlines.”

Top Copyright Photo: Ryanair Boeing 737-8 MAX 8 (200) EI-HEN (msn 62301) PAE (Nick Dean). Image: 953050.

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Ryanair launches three new UK routes and increased frequencies to Greece for Summer 2021

Ryanair Boeing 737-8 MAX 8 (200) N1800B (EI-HGG) (msn 62316) BFI (Joe G. Walker). Image: 953465.

Ryanair has announced three new UK routes from Liverpool, Manchester and Teesside, as well as increased flights from London Stansted and Manchester to a host of popular Greek destinations such as Chania, Corfu, Kos, Rhodes and Santorini. These new routes and extra frequencies will commence in July as part of Ryanair’s extended UK Summer 2021 schedule.

New Routes Weekly Flights
Manchester – Santorini 2
Liverpool – Kos 1
Teesside – Corfu 1
Increased Routes Weekly Flights
Manchester – Chania 3 (+1)
Manchester – Rhodes 4 (+1)
London Stansted – Rhodes 6 (+3)

In other news, Ryanair, also announced a new route from Teesside to Corfu (Greece) operating every Wednesday from July as part of Ryanair’s British Summer 2021 Schedule.

This new route expands Ryanair’s offer from Teesside following the airline’s return to the region with two other Summer routes to Alicante and Palma de Mallorca, both flying twice weekly from June.

Top Copyright Photo: Ryanair Boeing 737-8 MAX 8 (200) N1800B (EI-HGG) (msn 62316) BFI (Joe G. Walker). Image: 953465.

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Ryanair loses court challenges to SAS, Finnair state aid in new setbacks

Ryanair Boeing 737-8 MAX 8 (200) N1779B (EI-HGJ) (msn 62325) BFI (Joe G. Walker). Image: 953464.

From Reuters:

“The Luxembourg-based General Court said aid granted to SAS and Finnair complied with the bloc’s state aid rules.”

Read the full article.

Top Copyright Photo: Delivery of the first high-density MAX aircraft is imminent. Ryanair Boeing 737-8 MAX 8 (200) N1779B (EI-HGJ) (msn 62325) BFI (Joe G. Walker). Image: 953464.

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Ryanair to appeal EU court rulings on Finnair and SAS state aid

The new 200-seat Boeing 737-8 with 28 inches of seat pitch

Ryanair has issued this statement:

Ryanair has noted the EU General Court’s rulings on Finnish, Danish and Swedish State aid favoring Finnair and SAS over all other EU airlines. The Finnish government granted a €600 million loan guarantee to Finnair which has benefited from more than €1.2 billion in State aid since the beginning of the pandemic. The Danish and Swedish governments each granted a loan guarantee of €137 million to SAS which has also benefited from recapitalization State aid from these countries, bringing the total aid received by SAS to over €1.3 billion.

While the COVID-19 crisis has caused damage to all airlines that contribute to the economies and the connectivity of Finland, Denmark and Sweden, the governments of these countries decided to support only their flag carriers. Ryanair referred the European Commission’s approvals of these illegal subsidies to the EU General Court in June 2020. Ryanair will appeal today’s General Court judgments to the Court of Justice of the EU.

Ryanair’s spokesperson said:

“One of the EU’s greatest achievements is the creation of a true single market for air transport.  The European Commission’s approvals of the Finnish, Danish and Swedish State aid went against the fundamental principles of EU law. Today’s judgments set the process of liberalization in air transport back by 30 years by allowing Finland, Denmark and Sweden to give their national flag carriers a leg up over more efficient competitors, based purely on nationality.  

We will now ask the EU Court of Justice to overturn these unfair subsidies in the interests of competition and consumers. If Europe is to emerge from this crisis with a functioning single market, airlines must be allowed to compete on a level playing field. Undistorted competition can weed out inefficiency and benefit consumers through low fares and choice. Subsidies, on the other hand, encourage inefficiency and will harm consumers for decades to come.”

The EU Commission’s spineless approach to State aid since the beginning of the COVID-19 crisis has allowed Member States to write open-ended cheques to their inefficient zombie flag carriers in the name of faded national prestige. The EU Commission has hastily approved over €30 billion of discriminatory State aid since the crisis began.  Discriminatory State subsidies given by EU Member States or planned to be given are set out here:

Lufthansa Group               €11bn 

Air France-KLM                €10.6bn

Alitalia                                €3.5bn

SAS                                      €1.3bn

TAP                                     €1.2bn

Finnair                                €1.2bn

Norwegian                          €0.8bn

LOT                                     €0.65bn

Condor                                €0.6bn

Air Europa                         €0.5bn

Top Copyright Photo: Ryanair will soon take delivery of its first high-density MAX 8: Ryanair Boeing 737-8 MAX 8 (200) N4027A (EI-HGK) (msn 62326) BFI (Joe G. Walker). Image: 953313.

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