Raises Net Profit Guidance
Ryanair Holdings PLC
29 September 2006
RYANAIR RAISES NET PROFIT GUIDANCE AND
BUYS 32 BOEING 737 800s - VALUE OVER $2 BILLION
Ryanair, Europe's largest low fares airline today (Friday, 29th
September 2006) raised its full year Net Profit guidance to
approximately €335M (+11%), up from the +5% to +10% previously guided.
Ryanair also announced the order of a further 32 Boeing 737-800 series
aircraft, bringing the total number of firm orders for Boeing 737-800s
to 281.
These 32 next generation 737-800 aircraft are due for delivery between
September 2008 and June 2009 and will facilitate double digit annual
growth from 42M passengers this year to 84M passengers in 2012 as
Ryanair doubles in size and becomes Europe's largest international
airline. These firm orders are the conversion of options agreed with
Boeing in 2005 at prices that give Ryanair the lowest per seat operating
cost of any European airline.
Announcing this increased guidance and firm order today in New York,
Michael O'Leary, Ryanair's CEO said:
'Our outlook for this winter remains cautious. This winter we will
launch 106 new routes and 2 new bases (Marseilles and Bremen). We
have also hedged our fuel requirements for Q4 at an average cost of
$73 per barrel, lower than we had originally anticipated.
'Based on our aircraft delivery programme, our new routes and bases,
we anticipate that passenger growth will be slightly higher at 22%
(previously 20%) to 42.5m for the full year. We anticipate that our
loss making competitors will continue to dump fares. We also expect
slightly lower load factors (down 2% on last year) during H2 which
will give improved yield stability in the winter period. This will
result in the decline in forecast yields being closer to 5% which is
at the lower end of the (-5% to -10%) range we previously guided.
'As a result of these factors we believe that the increase in Net
Profit after Tax for the fiscal year will be approximately 11% to
€335m, slightly higher than our previous (+5% to +10%) range of
profit guidance.
'This further purchase of 32 Boeing 737 800 aircraft is great news
for European passengers who will now enjoy even more low fare routes
as we double in size to 84M passengers per annum by 2012.
'These aircraft are equipped with all of the latest technological
advances in engine type, aerodynamics and blended winglets which
ensure maximum fuel efficiency and have allowed Ryanair to reduce
fuel burn by 45% and cut CO2 emissions by 50% per seat. This order
will also create over 1,500 new highly paid jobs at our 17 bases
across Europe.
'Ryanair operates the youngest fleet of aircraft of any major
airline in Europe and the outstanding reliability and lowest
operating costs of the Boeing 737 800 aircraft mean that many more
passengers will enjoy Ryanair's lowest fares and best punctuality'.
Ends. Friday, 29th September 2006
For further information:
Peter Sherrard - Ryanair Pauline McAlester - Murray Consultants
Tel: 00 353 1 812 1228 Tel: 00 353 1 4980 300
This information is provided by RNS
The company news service from the London Stock Exchange
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