8-Jan-2010 12:02 PM

Ryanair expecting cash reserves to soar by Mar-2013

Ryanair announced (07-Jan-2010) the following in its Investor Update:

  • Capex: Following the termination of talks with Boeing for a 200 aircraft order in Dec-2009, planned capital expenditure will now decline from EUR1.2 billion in the current year to as little as EUR100 million p/a in fiscal year ending Mar-2013;
  • Cash reserves/dividends: The carrier expects current cash reserves of EUR2.5 billion to grow substantially by Mar-2013, and plans to distribute surplus cash to shareholders from that date. CEO, Michael O’Leary stated he expects the distribution to be “lumpy and irregular” (Bloomberg, 07-Jan-2010);
  • Hedging: 50% of fuel for the 12 months ending Mar-2011 has been hedged at approximately USD720 per tonne;
  • Earnings: Ryanair may slightly raise its FY2009 earnings forecast, following a "strong" 3Q2009;
  • Aer Lingus: Ryanair stated there is no truth or basis to recent Irish media speculation that it is preparing a third bid for Aer Lingus. In the absence of any decision by the Irish Government to sell its 25% stake, a third bid by Ryanair remains "highly unlikely". [more]

Ryanair: “We have twice made an offer to the government at ludicrously generous pricing terms to acquire their share in Aer Lingus. We’re not going to try and persuade them for a third time,” Michael O’Leary, CEO. Source: Bloomberg, 07-Jan-2010.