All right, Ryionaire's first half net profit beating estimates. The carrier is now raising its 2026 passenger forecast. Joining us now, Neil Soran, CFO of Ryanire.Neil, great to have you here. >> Delighted to be here. >> Um, so what was the source of the strength.I mean, you had better traffic even with uh some somewhat higher prior 119 million passengers in the first half of the year. That was about 3% up on the prior year. a bit slower than we we would have liked just we there were some delays in Boeing a ...

Core Insights - Ryanair's first half net profit exceeded estimates, prompting an increase in the 2026 passenger forecast [1] - The airline experienced a 3% increase in passenger traffic year-over-year, reaching 119 million passengers in the first half [2] - Cost management was effective, with costs per passenger rising only 1% despite significant increases in air traffic control charges and environmental costs [3] Passenger Traffic and Forecast - Ryanair expects to finish the year with approximately 207 million passengers, slightly above the initial target of 206 million, representing a 3.5% increase [4][5] - The airline is cautious about fare increases in the second half, not expecting the same growth rates as in the first half [5][6] Aircraft and Capacity - Ryanair has an order book of 206 Boeing Max 8200 aircraft, with 204 already received, and expects to receive the remaining six by February next year [7][8] - The airline anticipates a growth in passenger capacity to 215 million by summer, with plans to grow to 300 million passengers annually by FY34 [8] Market Dynamics - The European airline market is experiencing capacity constraints, with ongoing issues related to Pratt & Whitney engines and consolidation among carriers [10][11] - Ryanair's cost per passenger is significantly lower than competitors, allowing it to capture market share from weaker airlines [12] - Airports are actively seeking growth opportunities with Ryanair, which is expanding in various regions including Sweden, Italy, and Morocco [13]

Core Insights - Alaska Air Group Inc. reported third-quarter revenue of $3.8 billion, marking a 23% year-over-year increase and slightly exceeding expectations [1] - Despite strong revenue, GAAP net income was $0.62 per share, significantly lower than last year's $1.84 and below analyst estimates [2] - The company repurchased 10.6 million shares for $540 million, indicating confidence in its long-term outlook [3] Financial Performance - Revenue reached a record high of $3.8 billion, a 23% increase compared to the previous year [1] - GAAP net income fell to $0.62 per share, down from $1.84 year-over-year, missing analyst forecasts [2] - Adjusted EPS was reported at $1.05, also below expectations [2] - Operating cash flow was $229 million, with liquidity at $2.3 billion at the end of the quarter [2] Operational Insights - Unit costs increased by 8.6% due to IT recovery expenses and adverse weather conditions [3] - The airline operates major airlines including Alaska Airlines, Hawaiian Airlines, and Horizon Air, providing extensive passenger and cargo air transportation services [4]

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Core Insights - Ryanair reported a stronger-than-expected first-half profit, driven by robust summer demand and improved aircraft deliveries from Boeing [1] Financial Performance - The airline's first-half profit exceeded expectations, indicating strong operational performance [1] - The increase in profit is attributed to high demand during the summer season [1] Operational Highlights - Improved aircraft deliveries from Boeing have positively impacted Ryanair's operations [1] - The airline has raised its full-year passenger guidance, reflecting confidence in continued demand [1]

Core Insights - The primary trend in the European airline industry is a capacity constraint, with manufacturers like Boeing falling short on aircraft deliveries, impacting growth potential for airlines [1][5][6] - Despite the capacity issues, the airline has managed to recover from previous fare declines, with fares increasing by 7% this year after a 7% drop last year [2][3] - The airline is optimistic about future growth, projecting an increase in passenger numbers from 207 million this year to between 250 and 260 million by summer 2026 [6][13] Financial Performance - Profits have risen by 20% to €1.72 billion in the second quarter, with unit costs only increasing by 1% [2] - Traffic is expected to grow by approximately 3% for the full year, with a potential for 4% growth in the winter season [9][10] Capacity and Deliveries - The airline has secured 23 out of 29 aircraft that were previously short, with confidence in receiving the remaining aircraft by early next year [5][6] - Boeing's improved delivery performance is noted, with no defects reported in the new aircraft [6][7] Market Dynamics - The airline is adjusting its routes, cutting capacity in certain markets like Germany and Spain while expanding into countries like Sweden and Hungary, which are eliminating environmental taxes [15][16][19] - There is a consolidation trend among legacy airlines in Europe, with major players reducing capacity, creating opportunities for growth in markets that are more favorable to airlines [16][17] Regulatory Environment - The airline criticizes the UK government's increase in Air Passenger Duty (APD), arguing it will lead to a reduction in capacity and flights from the UK to more favorable markets [18][19][22] - The airline suggests that abolishing APD could lead to significant growth in regional UK airports, benefiting the overall economy [22][26]

Core Viewpoint - Ryanair's CEO Michael O'Leary criticizes the U.K. government's plan to increase air passenger duty (APD), arguing it contradicts efforts to stimulate economic growth and could lead airlines to relocate operations abroad [2][8][12] Group 1: Government Tax Policy - The U.K. government intends to raise APD rates from April next year, including a 50% increase for private jets and general increases for other flights [8] - O'Leary highlights that the proposed APD increase would represent a tax of nearly 33% on the average Ryanair flight price of £45 [9][10] - The Office for Budget Responsibility estimates APD revenues to be £4.7 billion ($6.18 billion) in 2025-2026, indicating its significance as a government income source [9] Group 2: Economic Impact - O'Leary argues that increasing air travel taxes is counterproductive to the government's goal of economic growth, citing examples of other European countries that have abolished similar taxes and experienced economic benefits [3][4] - He suggests that abolishing APD outside of London could lead to a 50% traffic growth in regional areas, which are in need of economic stimulation [10] Group 3: Company Strategy - Ryanair is considering relocating aircraft to countries with lower environmental taxes, such as Sweden, Hungary, and Italy, if the U.K. government proceeds with the APD increase [12] - O'Leary expresses frustration over the government's lack of responsiveness to Ryanair's proposals for growth in the regions of the U.K. [10][11]

Core Viewpoint - The airline stock, particularly Southwest Airlines, has underperformed in 2025, but a significant turnaround plan could yield rewards for patient investors [1][2]. Company Performance - Southwest Airlines has experienced a double-digit year-to-date loss, with shares declining over a decade, losing more than a third of their value as earnings per share fell nearly 80% [2]. - Despite challenges like a government shutdown and tariff issues, Southwest achieved record third-quarter operating revenue of $6.9 billion and maintains a 2025 EBIT forecast of $600 million to $800 million [3]. Turnaround Strategy - CEO Bob Jordan describes the current transformation as "the most significant transformation" in the company's history, indicating that substantial changes are underway [4]. - Changes include charging for checked bags and assigning seats, which may concern frequent flyers but are part of a broader strategy to enhance customer experience [5]. - The transformation also includes the addition of four new domestic routes and a partnership with EVA Air to connect travelers to Asia [6]. Financial Outlook - The turnaround plan aims to add an estimated $4 billion in EBIT by 2027, although investor patience will be crucial [8]. - Southwest Airlines boasts a strong balance sheet, concluding the third quarter with $3 billion in cash and access to a $1.5 billion credit revolver, allowing for capital returns to shareholders totaling $439 million in the last quarter [9][10]. Cost Management - The company is upgrading its fleet to more fuel-efficient Boeing 737 MAX aircraft, which will help reduce operating expenses despite higher capital spending [12]. - Potential cash flow could be generated from selling older planes and leasing back some aircraft, providing upfront cash while incurring long-term lease liabilities [13].

Group 1 - The UK government is increasing Air Passenger Duty (APD) by £2 in April 2026, leading to a total APD of £14, which represents a 33% tax increase for families traveling to and from the UK [1] - The company argues that abolishing APD outside of London could lead to a 50% growth in traffic, particularly in regions that need economic development [1][2] - The financial impact of abolishing APD is estimated to cost the government about £2 billion, but this could be recouped through increased consumer spending and VAT within a year [2] Group 2 - The company criticizes the government's understanding of ticket pricing, stating that a £2 increase in APD is actually a 5% increase based on their average ticket price of £45 [3] - There is a belief that other European countries are successfully abolishing environmental taxes and experiencing growth, suggesting that the UK should follow suit to avoid stifling economic development [4][5] - The company is reallocating aircraft from the UK and other regions to countries like Italy, Sweden, and Croatia, where tax policies are more favorable for air travel [8]

Core Viewpoint - The budget airline anticipates earlier-than-expected deliveries of Boeing aircraft, enabling it to increase passenger capacity in fiscal 2026 beyond previous forecasts [1] Group 1 - The airline's updated forecast indicates a significant increase in passenger numbers due to the accelerated delivery schedule of Boeing aircraft [1]