Ryanair, Europe’s largest low fares airline today (Friday, 29th September 2006) raised its full year Net Profit guidance to approximately €335M (+11%), up from the +5% to +10% previously guided. Ryanair also announced the order of a further 32 Boeing 737-800 series aircraft, bringing the total number of firm orders for Boeing 737-800s to 281.
These 32 next generation 737-800 aircraft are due for delivery between September 2008 and June 2009 and will facilitate double digit annual growth from 42M passengers this year to 84M passengers in 2012 as Ryanair doubles in size and becomes Europe’s largest international airline. These firm orders are the conversion of options agreed with Boeing in 2005 at prices that give Ryanair the lowest per seat operating cost of any European airline.
Announcing this increased guidance and firm order today in New York, Michael O’Leary, Ryanair’s CEO said:
“Our outlook for this winter remains cautious. This winter we will launch 106 new routes and 2 new bases (Marseilles and Bremen). We have also hedged our fuel requirements for Q4 at an average cost of $73 per barrel, lower than we had originally anticipated.
“Based on our aircraft delivery programme, our new routes and bases, we anticipate that passenger growth will be slightly higher at 22% (previously 20%) to 42.5m for the full year. We anticipate that our loss making competitors will continue to dump fares. We also expect slightly lower load factors (down 2% on last year) during H2 which will give improved yield stability in the winter period. This will result in the decline in forecast yields being closer to 5% which is at the lower end of the (-5% to -10%) range we previously guided.
“As a result of these factors we believe that the increase in Net Profit after Tax for the fiscal year will be approximately 11% to €335m, slightly higher than our previous (+5% to +10%) range of profit guidance.
“This further purchase of 32 Boeing 737 800 aircraft is great news for European passengers who will now enjoy even more low fare routes as we double in size to 84M passengers per annum by 2012.
“These aircraft are equipped with all of the latest technological advances in engine type, aerodynamics and blended winglets which ensure maximum fuel efficiency and have allowed Ryanair to reduce fuel burn by 45% and cut CO2 emissions by 50% per seat. This order will also create over 1,500 new highly paid jobs at our 17 bases across Europe. “Ryanair operates the youngest fleet of aircraft of any major airline in Europe and the outstanding reliability and lowest operating costs of the Boeing 737 800 aircraft mean that many more passengers will enjoy Ryanair’s lowest fares and best punctuality”.
More excellent news for Boeing!
By: bring_it_on - 2nd October 2006 at 08:26
Is Airbus massive sales campaign of 2005 in order to beat Boeing to the No.1 spot catching up with them perhaps?They sold 500 in one month last year. Surely that must have depleted a lot of the orders that probably would have otherwise been booked this year?
It could be the case however it is pure speculation from our part , boeing also sole 250+ in december of last year , it is just the nature of the end of the year in the industry ( Slow aug and sept lead to big nov. dec.) . The A320 has been and still is a very robust production aircraft , but with the orders last year the NG also became one size , it is quite simple the more orders you take in the more competitive you become for further orders . Also a large factor almost certainly has to be the sale of more Wide bodies , the SUPPOSED cost machine for airbus (a380) hasnt done well at all this year , where as the cost churner for boeing the 777 has sold something like 175 aircraft in the last 2 years ( not many slots left for the near term therefore sales have also been delayed) , the dreamliner has sold like crazy in the last 2 years aswell ( 400+ firmed up orders with about 450 commitments ) and the 747 has come along ( something like 24 orders this year for the F version ) , the widebody market usually works at a larger profit therefore there may be cross subsidization involoved to build up scales for the 737 production . Also boeing doesnt have 15 billion plus 10 billion lined up on a development product and dont have about 100 aircrafts that they cant deliver by 2012;)
By: Bmused55 - 2nd October 2006 at 07:37
Is Airbus massive sales campaign of 2005 in order to beat Boeing to the No.1 spot catching up with them perhaps?
They sold 500 in one month last year. Surely that must have depleted a lot of the orders that probably would have otherwise been booked this year?
By: bring_it_on - 30th September 2006 at 18:18
If boeing continues with the same freq. of orders for the 737 they should cross 800 ( not factoring the first 15 days of next january) which will be beating the old record ( not so old) by a humoungous margin , and we also have to look at the christmas bonanza ( apparently aug-sept is a slow period in the market )
By: bring_it_on - 30th September 2006 at 18:15
they also rotate and sell off some of the 737’s , IIRC they will sell off 5 737’s this year.
By: jethro15 - 30th September 2006 at 17:35
FR’s fleet size will be frightening
As of today it satands at:
In Service – 111
On Order – 170
Total orders – 281
Outstanding Options – 141
I’m 99.9% certain that the delivery schedule I show on the site is correct as of this time
By: bring_it_on - 30th September 2006 at 08:28
That pushes the 737 well past the 500 sold mark this year!
it takes it to 539 for the year ( cancelleations allready factored in) , which is about 30 odd short of the all time 737NG single year record which was set ironically last year!!
In contrast, it seems Airbus have only roughly half that ammount through their entire product family! Whats going on?!
Thats what i’ve been thinking aswell , whats so different this year ?? airbus sold something like 900+ A320’s last year as opposed to nearly 570 by boeing , and thats a 48-62% makeup , granted that this year boeing has picked up two loyalist orders ( Southwest 80 and ryanair-32) but the reasons have to be far greater then this as the upward trend really started last year when boeing had its record year for the NG even though they were behind the 320 . I beileve it is due to a lot of factors , 1) boeing has introduced a lot of effeciencies in the 737 line reduced time , ramped up production and cut into a much leaner production line , 2) the sale of the 777, dreamliner , freighters etc which are high profit items has enabled boeing to give better overall pricing to its bulk orders for the stock 737 jet , whereas airbus hasnt sold much of the A380,340 this year and what limited success has been has been with the 330 .
Any takes ??
By: Bmused55 - 29th September 2006 at 20:26
That pushes the 737 well past the 500 sold mark this year!
In contrast, it seems Airbus have only roughly half that ammount through their entire product family! Whats going on?!
By: bring_it_on - 29th September 2006 at 18:52
they do rotate their aircraft aswell so it wont be as much as adding everything .
By: manchestersam - 29th September 2006 at 17:26
FR’s fleet size will be frightening:o
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September 29, 2006 at 3:19 pm