25-Sep-2009 12:29 PM

Ryanair reduces full year traffic target; maintains profit forecast; planning large aircraft order

Ryanair held its AGM on 24-Sep-2009, with the following strategic updates (Reuters/The Times/Irish Times, 24/25-Sep-2009):

  • Passenger target: Ryanair reduced its full-year traffic target from 67 million to 66 million, predominantly due to capacity reductions at Dublin and London Stansted;
  • Profit outlook: Ryanair maintained its full year profit forecast, at the lower end of the EUR200-300 million range;
  • Long-haul services: CEO, Michael O’Leary, stated the carrier is at least three or four years away from launching an associated low-cost long-haul airline, due to a lack of affordable aircraft;
  • Dividend: Ryanair suggested that it is considering paying a one-off dividend, a change from its usual cash preservation strategy. The carrier currently has cash reserves of approximately EUR2.5 billion;
  • Fleet plans: Is in negotiations with Boeing and Airbus for another large order of up to 200 aircraft;
  • Aer Lingus: Mr O’Leary stated it is “highly unlikely” Ryanair will make a third bid for Aer Lingus (in which Ryanair owns 29%).

Ryanair: "While the market or orders for short-haul aircraft has collapsed for both Boeing and Airbus, the long-haul order book has held up," Michael O'Leary. Source: Reuters, 24-Sep-2009). 

Ryanair: “I can’t foresee circumstances in which we would be interested in bidding again [for Aer Lingus], but you never say never. I don’t believe Aer Lingus has a future as a standalone independent airline," Michael O’Leary, CEO. Source: The Times, 25-Sep-2009.

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