Tag Archives: Ryanair

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.

Ryanair slide show:

Ryanair announces 2,000 new pilot jobs

Ryanair has 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 737-8 200 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 programs.

Ryanair’s People Director Darrell Hughes said:  

“As we take delivery of more than 210 Boeing 737-8 200 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’’.

Ryanair selects seven candidates from six countries for its first customer advisory panel

Ryanair has 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 trail blazed 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 panelists include:

  • Mark, (34) from Ireland, who is an avid traveller, having visited over 50 countries.
  • Julia, (20) from Poland, a price-savvy traveller who tells us she will come equipped with lots of customer care ideas.
  • Luana, (43) from Italy has a real passion for travel.
  • Jaime, (47) lives in Ibiza, regularly travels home to Barcelona.
  • Christian, (66) from Germany, now retired, loves to whisk his wife off for European city breaks.
  • Naomi, (34) from Belfast loves to travel, has previously lived in London and Liverpool, now living in Madrid.
  • Sue, (52) lives in UK and is looking forward to traveling to see her son in Paris soon.

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 to open a new base in Agadir, Morocco

Ryanair has announced it will open a new base in Agadir, the third base in Morocco starting in November 2021 with two aircraft.

The low-fare airline will operate 55 weekly flights to seven European countries and 25 destinations from Agadir, including Bologna, Brussels, Rome, Dublin, Paris, Porto, and Toulouse.

 

 

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.

Ryanair aircraft slide show:

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Ryanair expands in Finland

Ryanair on June 23 announced its expansion in Finland which sees its return to Helsinki where it will operate 29 departing flights per week across eight destinations to a host of international hotspots including London, Paris, Brussels and many more this winter.

Ryanair also adds one new route to London Stansted from Tampere, operating 2 flights per week. Already operating from Lappeenranta, the launch of these nine new routes demonstrates Ryanair’s commitment to the happiest country in the world and will play a key role in the recovery of jobs and the local economy.

 AIRPORT NEW ROUTES FROM DEPARTING
FLIGHTS PER WEEK
 

 

 

Helsinki

London Stansted 7
Milan Bergamo 4
Riga 4
Warsaw Modlin 4
Brussels Charleroi 3
Kaunas 3
Paris Beauvais 2
Poznan 2
Tampere London Stansted 2

 

Ryanair announces its 16th Italian base in Turin

Ryanair announced it has opened its 16th Italian base at Turin with two based aircraft and 32 routes connecting Turin, both domestically and internationally, to 13 countries across Europe, North Africa and the Middle East.

Ryanair’s new Turin base will deliver:

  • Two based aircraft ($200m investment), 60 direct jobs
  • 18 new routes (16 international / two domestic) for the winter season*
  • 32 routes in total (23 international / nine domestic)
  • Connections to winter holiday destinations such as Lanzarote, Malta, Mallorca and Marrakech, city breaks to Copenhagen, Budapest, London and Paris as well as domestic connections to Palermo, Naples and Bari.
  • Over 123 departing flights per week.

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.

Ryanair aircraft slide show:

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.

Ryanair aircraft slide show:

Ryanair to double its presence in Rome Fiumicino this summer

Ryanair has announced the addition of three based Boeing 737-800 aircraft, six new routes and over 65 flights every week from Rome Fiumicino to a host of domestic and international destinations.

Ryanair remains committed to delivering connectivity to Rome and expects its Summer ’21 schedule, including 78 routes from both Rome airports in total and over 470 departing flights per week,.

Ryanair’s Rome Summer ‘21 schedule will deliver (Fiumicino and Ciampino):

  • Up to 14 based aircraft, including three additional based aircraft in Fiumicino from August
  • 78 routes in total (six domestic / 72 international)*
  • 11 new routes
  • Over 470 departing flights per week across both airports
  • Connections to holiday destinations such as Malta & Rhodes, city breaks to Madrid & Porto, as well as domestic connections to Cagliari & Trapani.

Ryanair’s Rome Fiumicino Extended Summer ‘21 schedule will deliver:

  • Up to six based aircraft, including three additional based aircraft from August – a $300m investment
  • Up to 180 direct jobs and over 2,200 indirect jobs
  • 21 routes in total (four domestic / 17 international) *
  • Six new routes, all commencing in August:

 

Route Departing Flights Per Week Route Departing Flights Per Week
Chania 3 Santorini 4
Fuerteventura 3 Tenerife South 3
Liverpool 4 Zakynthos 4

 

  • Extra flights on eight routes:

 

Route Departing Flights Per Week Route Departing Flights Per Week
Barcelona 14 (+5) Catania 49 (+7)
Bari 18 (+4) Kyiv 7 (+2)
Brindisi 14 (+7) Palermo 35 (+7)
Brussels 14 (+11) Vienna 7 (+4)

 

  • Connections to holiday destinations such as Malaga & Malta, city breaks to Seville & Vienna, as well as domestic connections to Brindisi & Palermo.