Ryanair(US:RYAAY)2024-05-20 21:54Financial Data and Key Metrics Changes - The company reported a profit after tax growth of 34% to €1.92 billion, with traffic growing 9% to 184 million passengers, which is 23% more than pre-COVID levels [1][51] - Revenue increased by 25% to €13.4 billion, driven by a 21% increase in average fare and solid ancillary revenue performance [51] - Operating costs rose by 24% to just over €11.3 billion, primarily due to a 32% increase in fuel costs, adding €1.25 billion to the fuel bill [51][30] Business Line Data and Key Metrics Changes - Ancillary revenue per passenger increased by 3% to just over €23.40 [30] - The company took delivery of 146 new Boeing 737 Gamechanger aircraft, bringing the fleet to just under 600 aircraft [1] Market Data and Key Metrics Changes - The company anticipates strong demand for summer 2024, with forward bookings trending ahead of last year, despite some pricing softness [2][75] - The company expects to operate its largest ever summer schedule with over 200 new routes and five new bases [1][75] Company Strategy and Development Direction - The company aims to grow to 300 million passengers by FY34, supported by a significant order of 300 Boeing 737 MAX 10 aircraft [9][43] - The company is focusing on maintaining a strong balance sheet while returning funds to shareholders through dividends and share buybacks [25][66] Management Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for peak summer 2024, expecting fares to be flat to modestly ahead of summer 2023 [2][29] - The company highlighted the importance of avoiding adverse events such as geopolitical conflicts and delivery delays from Boeing for future profitability [2] Other Important Information - The company has upgraded its ESG ratings, achieving an MSCI A rating and an A- from the Climate Disclosure Project [1][54] - The company is working with various online travel agencies (OTAs) to ensure fair pricing for consumers and to eliminate overcharging practices [4][36] Q&A Session Summary Question: What were the key drivers for the reported PAT of €1.92 billion? - The key drivers included a 9% increase in traffic, a 21% increase in average fares, and solid ancillary revenue performance [17] Question: What is the current fuel hedging position? - The company is 70% hedged for the full year out to March 2025 at about $79 per barrel, resulting in a €450 million saving compared to last year's hedge rate [31][43] Question: What are the details of the share buyback? - The Board approved a €700 million share buyback, which will be balanced between EU and non-EU shareholders [66][70]