Ryanair’s guidance largely unchanged at AGM
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Ryanair held its AGM in Dublin to update shareholders on trading, the difficult economic environment and recent airline industry developments in Europe.
Commenting on its outlook for the current year to 31-Mar-09, Ryanair reiterated that it expected to carry just over 58 million passengers. The Company did not significantly alter its full year guidance which has improved from the previous “breakeven to minus EUR60m” to a current “breakeven” based on Q.4 oil remaining at $100 per barrel (down from $130 p. bl) this Winter. Ryanair welcomed the recent fall in oil prices. It has hedged most of its Q.3 requirements at $124 per barrel, but remains unhedged for Q.4. Whilst Ryanair expects to pay less for oil in Q.4, these savings may well be eaten up by lower yields this Winter, as the UK, Irish and European economies go into recession and consumer confidence plummets.
Ryanair will respond to these negative trends by lowering fares this Winter, and underlined its intent by releasing 5 million seats for travel in October, and the first two weeks of Nov-08 for just EUR5 one way (incl. taxes and charges). Ryanair remains the only European airline to guarantee the lowest fares on every route and no fuel surcharges as well.
Ryanair expects more airline bankruptcies in the coming weeks following the recent closures of Zoom, Futura, XL Airways and the bankruptcy of Alitalia. Ryanair believes that many unviable loss making European airlines will cease trading this Winter because of unsustainable losses and insufficient cash reserves. Ryanair recommends that any passengers making bookings this Winter, should book with Ryanair, which has over EUR2 billion in cash. Ryanair called on Europe’s high fare airlines including BA, Air France, Lufthansa and Aer Lingus to reduce their unjustified fuel surcharges to reflect the recent 38% drop in oil prices.
(C) Centre for Asia Pacific Aviation. Date posted: 19-Sep-08
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Ryanair’s guidance largely unchanged at AGM 
