Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
Please consider a small donation if you think this website provides you with relevant information
| Statement |
|---|
| And as there are very strong performance over the last two years, and we're now carrying 22%, 23% more traffic than we did pre-COVID in an industry across Europe, that's operating at about 94% pre-COVID capacity |
| In a crisis or a downturn, average airfare like that I expect would fall in a capacity constrained consolidated market like Europe I think the rest of the year underlying air fares will rise but I'm pleased we'll continue to turn them along doing what they do and it's a much more reliable source of income, as well as we use the average fares to make sure that we hit the low prices and fill all our flights |
| We maintain a very strong 95% load factor through the summer period |
| Thanks to the team for what I think has been a very strong six month performance |
| It's good for load factors, and it's certainly been good for average fares |
| And I would be very strongly in favor, restarting share buyback if our PE multiple continues in single digits |
| We're priced active load factor active, what's driving the strong growth in average fares is the strong upward pricing being, that's being delivered by our competitors across Europe in a constrained market |
| We're now doing that on aircraft like the Boeing MAX where we can carry more passengers but burning less fuel and delivering very material operating cost efficiency |
| So we're delivering great service at lower prices |
| We're also happen to be probably the best on-time performance |
| We remain committed to Boeing the new 300 Boeing MAX-10 order will we believe underpin low fare profitable growth for a decade to 300 million passengers by FY34 |
| We will operate over 60 new routes including our first 17 routes to Tirana in Albania which opened last week with some success, high load factors and strong customer impact |
| But just to focus on some highlight pieces, obviously we've had a very strong Easter and record summer traffic that resulted in a very strong half year profit rising at EUR2.18 billion and we expect over the full year now that a profit after tax of about EUR10 per passenger is likely to be achieved and we've declared our first ordinary dividend, it's not a first dividend, but it's certainly our first ordinary dividend has been declared this morning |
| We see stronger pricing in the Ryanair model as Europe consolidates or continues to consolidate over the next through two, three, four years as capacity continues to be materially constrained |
| And I think that's fundamental, not just Ryanair’s strong results in this half year, but also a very strong result reported by many of our competitors in recent weeks |
| And I think that's why off a much lower base we're seeing a strong and I think that would continue off a much lower base |
| They are driving more and more people, more and more customers and their families in the direction of Ryanair taking low fare air travel, and we're seeing strong forward bookings and strong pricing |
| We're clearly growing strongly |
| Cost is well under control and that takes the -- and our cash generation is strong |
| And I think that's good for the business |
| Just I think what, [indiscernible] on operational resilience is coming out post-COVID where we were just better prepared than all of our competitors by keeping everybody employed and keeping everyone current our crews and our aircraft current |
| So I think we're very happy just to operate what we have and to continue to work with Boeing to accelerate and speed up the pace that we're getting the MAXs into the fleet |
| I mean, average fares up 15% in Q3 looks very strong |
| Forward bookings, both traffic and fares are robust over late October midterms and into the peak Christmas travel period, and with the benefit of this constrained EU capacity this winter, we currently expect average, Q3 average fares to be ahead of the prior Q3 by about a mid-teens percent |
| So, not alone, is it important they're achievable, but they also mean that we're tying into management we get medium long-term commitment from the senior management team to continue to deliver the impressive performance and results |
| This is a very strong performance but while the number looks big a profit of EUR10 per passenger is reasonably modest given the capital and the human resources that go into delivering an exceptional service to our customers, high on-time performance, and a very low cost base, which will enable us to continue to pass on markedly lower airfare to our customers at a time when huge capacity constraints in Europe, our competitors are all pricing upwards very aggressively |
| I think that under -- gives us a reasonable prospect of another strong summer of profit and pricing, and that's already reflected in strong forward bookings |
| Ryanair's average fare across Europe was about -- was under EUR50, which does show we are materially lower, cheaper and lower cost in Southwest, but it gives us significant headroom for us to grow our business and I think modestly grow airfares in a consolidated capacity constrained market over the next three to five years |
| And I think they'll be solid over the next number of years |
| We are growing in the likes of Italy, UK and Spain, which is delivering solid fares |
| Statement |
|---|
| Now, added to that capacity constraints story though with the continuing inability of the OEMs to manufacture both Airbus and the Boeing to accelerate deliveries |
| The market remains constrained, likely to remain constrained for a various number of issues, including the Pratt & Whitney engines, the lack of availability of new orders this side of 2030 and the consolidation play |
| They remain challenged on their existing deliveries, both Airbus and Boeing are running maturity behind because supply chain challenges going also with their production issues with Spirit |
| Europe's ATCs are fundamentally mismanaged, underproductive and ridiculously expensive compared to North America |
| It would further constrain capacity across Europe where, again, Airbus and Boeing to be challenged on their delivery positions |
| And you can see that, I think in a lot of the recovery or lack of recovery from our competitors who appear reluctant to get back to full recovery |
| There was a dramatic increase in no shows and a collapse in bookings |
| Again, I think there's going to be a real challenge on inter European capacity next summer |
| The biggest challenge continues to be not just the cost of that, but the environmental impact of flight delays, long flight plan |
| There's a risk that we get left significantly shy on aircraft and then we're handling more crews over less aircraft |
| And if we just use the example of the UK, the NASS collapsed on the 28th of August, which resulted in the closure of UK airspace and widespread cancellations because of the increased resilience we had by -- that was on the Monday |
| The only thing I would point to do is that there was a very steep falloff in loads on the flights to Jordan and also obviously the Israel, the situation, the Israeli Hamas conflict |
| Firstly, just on your October traffic, your load factor was slightly lower than the prior year |
| It may create some challenges, but I think we're facing challenges, I think, on the labor front anyway in the next year or a couple of years, I think we've reflected that in what has been the pay restoration and generous pay -- already generous pay agreements in place with [indiscernible] across Europe |
| Lufthansa -- the German market is the one that is weakest, it has recovered only about 80% pre-COVID |
| This is an unexpected issue that wasn't planned into the maintenance schedule for the engine, for the engine shops |
| Where are the risks, there's a risk that you could see higher spike ups in the likes of route charges in the first quarter of calendar 2024 than we're anticipating |
| We do expect that Q4 will be a loss, I think we lost about EUR150 million in Q4 of last year, the prior year |
| Despite uncertainty over Boeing delivery, significantly higher fuel bill very limited Q4 visibility and the risk of weaker consumer spending over the coming months, we now expect that full year ‘24 the profit after tax will finish in a range of between EUR1.85 billion to EUR2.05 billion, assuming modest loss us over the second half winter period |
| But as long as very small ATC unions have a disproportionate power and you have weak European governments who are willing to stand up to these with the way Reagan did with the American aircraft [indiscernible] day back in 1980, I think we will continue to be bedevilled by ATC delays, inefficiency and screwups in Europe |
Please consider a small donation if you think this website provides you with relevant information