Ryanair(US:RYAAY)2024-01-29 17:21Financial Data and Key Metrics Changes - Traffic grew by 7% to 41 million passengers, with revenue per passenger increasing by 9% and average fares up by 13% [6] - Fuel bill rose by €320 million, a 35% increase, totaling €1.2 billion for the quarter [6] - The company has €2.9 billion in gross cash and a net cash balance of €150 million, maintaining a BBB+ rating from Fitch and S&P [9] Business Line Data and Key Metrics Changes - Ancillary revenues increased by 2%, with a notable rise in average ancillary spend per passenger from €18 to €23 [6][100] - The company has 136 B737 Gamechangers in its fleet, significantly behind original delivery schedules due to Boeing delays [6] Market Data and Key Metrics Changes - The company is targeting 183.5 million passengers for the current year, slightly down from the original budget of 185 million due to ATC strikes and cancellations [4] - Forward bookings for summer 2024 are running about 5% ahead of the same time last year, with pricing up by a low single-digit percentage [25] Company Strategy and Development Direction - The company is focusing on converting OTA pirates into approved OTA partners to protect customers from overcharges [7] - There is an expectation of continued consolidation in the airline industry, with capacity constraints due to aircraft delivery delays and competitor groundings [25] Management's Comments on Operating Environment and Future Outlook - Management narrowed full-year FY '24 profit after tax guidance to €1.85 billion to €1.95 billion, down from a previous range of €1.85 billion to €2.05 billion [8] - The company is optimistic about summer 2024 pricing, expecting it to be ahead of summer 2023, driven by strong demand despite potential geopolitical risks [38] Other Important Information - The company has extended fuel hedging, with 65% of FY '25 fuel hedged at $79 per barrel, resulting in a €450 million saving [6][9] - The company is actively working with Boeing to improve delivery schedules and quality control [3][25] Q&A Session Summary Question: What are the expected headwinds or tailwinds for costs in the next year? - Management indicated that route charges are expected to track up slightly year-on-year, impacting unit costs [42] Question: How is pricing expected to perform in summer 2024? - Pricing is anticipated to be up in the mid to high single digits, with strong demand expected during school holidays [38] Question: What is the company's strategy regarding OTA partnerships? - The company aims to establish approved partnerships with OTAs to prevent illegal screen scraping and overcharging [26][55] Question: What are the implications of aircraft delivery delays on growth? - Delivery delays are expected to constrain growth, with a revised passenger target of around 200 million for FY '25 [18][63] Question: How is the company managing pilot pay and resources? - The company plans to keep pilot pay competitive while ensuring sufficient crew resources for summer 2024 [46][71]