Ryanair Holdings Plc · EURONEXT:RYA
Ryanair — Q1 FY25 Earnings Presentation
20 slides from Ryanair's earnings presentation, Jul 22, 2024
Slide 1: Q1 FY25 Results – May 2024
Q1 FY25 Results — May 2024 7 RYAN a =:
Slide 2: Europe’s Lowest Cost Airline
Eur ope’s Lowest Cost Air line Lowest fare/lowest cost EU airline No. 1, Traffic: c.200m (+8%) No. 1, OTP & reliability No. 1 EU ESG airline – Sustainalytics 300 MAX-10 order – Decade of Growth Fin. strength + lowest cost = L.T. winner 2 2
Slide 3: Europe’s No. 1 Coverage & Choice
E u r o p e ’s N o. 1 C ove r a g e & C h o i c e 95 bases (5 new S.24) ─ CPH, DBV, REG, TNG, TRS 234 apts. 37 countries 600 aircraft peak S.24 ─ 350 aircraft on order 3,600 daily flights 300m pax p.a. FY34 3 3
Slide 4: Europe’s Lowest Costs – Gap Widens
Eur ope’s Lowest Costs – Gap W idens € per pax RYA WIZ EZJ LUV IAG LUF AFKLM Staff/Efficiency 8 8 13 75 47 44 92 Airport & Hand. 8 14 25 12 47 28 40 Route Charges 6 6 6 - 6 6 6 Own’ship & Maint. 8 17 14 18 40 54 54 S, M & Other 4 0 21 27 19 32 30 Unit Cost Ex Fuel 34 45 79 132 159 164 222 (i) Net Fi
Slide 5: Q1 FY25 Results
Q1 FY25 Results Q1 FY24 Q1 FY25 Guests 50.4m 55.5m +10% Load Factor 95% 94% -1pt Ave. Fare €49.07 €41.93 -15% Revs. €3.65bn €3.63bn -1% Op. costs €2.94bn €3.26bn +11% PAT €663m €360m -46% 5 5
Slide 6: Ind. Leading Balance Sheet (BBB+)
Ind. Leading Balance Sheet (BBB+) €’bn Mar. 24 Jun. 24 Assets 13.1 13.5 B737 fleet debt free Cash 4.1 4.5 Strong liq. post capex & b/back Total 17.2 18.0 Accruals 6.8 7.4 Debt 2.8 2.8 Net Cash: €1.74bn – Jun. 24 Net Cash: €1.37bn – Mar. 24 S/H Funds 7.6 7.8 Total 17.2 18.0 6 6
Slide 7: Current Developments
Cur r ent Developments Peak S.24 volumes strong – record traffic, fares materially lower than S.23 EU ATC cont. to underperform even without FR strikes “Approved OTA” deals (10 of top 12) – protect c’mers from o/charges Fuel: FY25: 75% hedged @ < $80bbl – €450m savings locked in FY26: 43% he
Slide 8: S.24 Performance
S.24 Perfor mance Record S.24 traffic – 5 new bases, 200+ new routes − Jun.: 19.3m pax @ 95% LF (1st month > 19m) Q1 fares ↓ 15%; Q2 fares materially lower vs PY − Depends on close-in Aug. & Sept. − Consumer spend weaker than expected Intra-EU cap. constrained – over multi. years − P&W engs.,
Slide 9: ATC Continues To Underperform
AT C C o n t . To U n d e r p e r f o r m Urgent EU ATC reform is needed ATC fees rise to record levels but staff & OTP decline Less French ATC strikes but ATC delays ↑ in Jun. Mismanagement – short staffed & equip. failures Last 10 days Jun. – 30%+ RYA flts. suffer ATC delays/canxs. MOL d
Slide 10: Boeing Delivery Update
Boeing Deliver y Update 156x B737 G’Changers @ 30 Jun. (fleet 594 acft.) 160+ by end Jul. (c.20 short of contract delivs.) Working with Boeing to improve qual. & delivs. Continue delivs. in Aug. & Sep. Focus on deliv. of next 50 B-8200s pre S.25 Expect MAX-10 cert. during 2025 (1st RYA d
Slide 11: “Approved OTA” Deals Protect Customers
“A p p r o v e d O TA” D e a l s P r o t e c t C ’ m e r s 10 of top 12 OTAs sign “Approved” deals ─ 2 more in pipeline Approved OTAs protect c’mers − No overcharging − No mark-ups on ancil. products − No digital piracy (screen scraping) − Real c’mer email & payment details OTA’s get direct fe
Slide 12: Shareholder Returns
S/holder Retur ns Board approves Div. Pol. – 25% of PY PAT ─ €400m in 2024 (€200m Feb., €200m Sept.) ─ €480m in 2025 €700m share b/back in May (>50% complete already) ADR ratio change – 2:1 (from 5:1) – incr. liquidity €7.8bn+ retd. to s/holders since 2008 Policy to return surplus cash to
Slide 13: Outlook
Outlook FY25 Traffic: +8% (198 – 200m) – subj. to Boeing delays Q2 volumes strong but pricing softer (materially lower than PY) − Depends on close-in Aug. & Sept. fares Zero H2 vis., no Easter in Q4 Cost adv. widens – FY25 unit costs rise modestly ─ Ex-fuel costs offset by fuel hedge saving
Slide 14: Appendices
Appendices Appendices 14
Slide 15: Europe’s Lowest Costs – Gap Widens vs US Carriers
A ppendix: Eur ope’s Lowest Costs – Gap W idens vs US Car rier s € per pax RYA WIZ EZJ LUV AAL UAL DAL Staff/Efficiency 8 8 13 75 64 83 79 Airport & Hand. 8 14 25 12 13 17 45 Route Charges 6 6 6 - - - - Own’ship & Maint. 8 17 14 18 30 31 27 S, M & Other 4 0 21 27 57 75 60 Unit Cost Ex Fuel 34 45 79
Slide 16: Ind. Leading Hedging Position
A ppendix: Ind. Leading Hedging Position Jet Swap / (bbl) (i) Opex €/$ (ii) Carbon (ii) H1 FY25 71% ($79) 86% ($1.11) H2 FY25 80% ($80) 84% ($1.12) FY25 H2 75% ($80) 85% ($1.11) 100% (€76) H1 FY26 43% ($78) 38% ($1.11) H2 FY26 43% ($78) 45% ($1.11) FY26 H2 43% ($78) 43% ($1.11) 40% (€59) (i) Brent c
Slide 17: Fleet FY27 – FY34 (300 MAX-10 order)
Appendix: Fleet FY27 – FY34 (300 MAX-10 order) 790 800 800 Yr. end Fleet 760 300 x MAX-10s 730 700 681 MORE SEATS 670 655 LESS FUEL 8 28 68 122 169 218 268 300 LOWER COSTS 26 21 600 584 10 1 27 ADDIT. CAPAC. FOR AIRPORTS 210 210 210 TO GROW 146 210 210 210 210 LOWER APT. & 400 210 HAND.COSTS 411 411
Slide 18: MAX-10 Order = Decade Of Growth
A ppendix: MAX-10 Or der = Decade Of Growth Fleet Pax p.a. (m) Pax Grth Cum. Grth (i) FY24 584 184 - - FY25 647 200 +9% +9% FY26 647 215 +8% +17% FY27 655 230 +7% +25% +2% +28% 300 MAX-10 Order FY28 670 235 FY29 681 240 +2% +30% FY30 700 250 +4% +36% FY31 730 265 +6% +44% FY32 760 280 +6% +52% FY33
Slide 19: Best in class ESG
A ppendix: Best in class ESG Ratings: - Member of: Committed to: 19 19
Slide 20: ESG Update
A ppendix: ESG Update 2024 “Aviation with Purpose” report published Call on EU Comm. to adopt ‘Polluter Pays’ pol. – L.H curr. exempt EU to limit monitoring of non-CO2 impacts to intra-EU – why? Sig. invest. in fuel effic. acft. (“G’changers” & MAX-10) TCD Sus. Aviation Research Centre par