Q1 2022 Ryanair Holdings PLC Earnings Call
Uh huh.
Hello, and welcome to the Ryanair Q1, FY 'twenty 2 result.
Conference call throughout the call all participants will be in listen only mode and after we'd still be a question and answer session. During the Q&A in the interest of time and fairness. Please limit yourself to a maximum 2 questions per person just to remind you. This conference call is being recorded today I'm pleased to per cent Michael.
A group of CGI. Please begin your amazing.
Okay. Good morning, ladies and gentlemen, and welcome to the Q1 results conference call. We have the whole team assembled at various locations on a flow on call today.
I, we posted this morning of the usual press release, we've done the Neil and myself have done them at Q&A.
Ryanair itself and the Investor day presentation, I propose to spare you all that detail and rather than going through the press release I'll take up is wait and give you a couple of themes.
I think the key 1.
3 key themes of the sporting metrics 1 of traffic recovery too is the very strong performance all of them.
On the cost containment and how that would play out over the next 2 or 3 years.
Then I think the extraordinary it's 12.
The growth opportunity that's unfolding in front of us as we take delivery of over 200 of Max aircrafts over the next 4 years out of time, when we would see meaningful.
At the seat capacity.
Across Europe.
So on seamless process of coffee to talk with $8.1 million.
When you went public with them that we just wouldn't be in parts of the neighborhood almost 2 million and made the cycling of did you that recovery could take is strong going into Q2 inch of.
Our lives of people will get to in fact, we will justify.
Because it just takes 8.9 million passengers I know last week, we said almost with just get over 9 million passengers August at the moment of it I'm trying to just get over 10 million passengers and we'd be hopeful with the rate of people both September.
We get to about 28 million, maybe 29 million in the second quarter. So.
Just about all of the loans that we have 8 many of in Q1, but about 28 and 29 million in Q2, all of the pieces of it to be heavily qualified on their big no adverse.
Covid variant developments all returned to Lockdowns and we think we feel reasonably comfortable if that's the case, we can't eliminate political mismanagement of particular.
In the U K or Ireland, which has been astonishingly poorest at the magnitude of the recovery, but in general terms. We think we're headed for a very very strong traffic recovery through the second quarter.
We used about prospect of that would be maintained into Q3 and Q4.
And we're seeing a bunch of strong recovery I think in.
And any view of the Red Sea sees if you take those monthly figures in Q1, and we tally tight time. The April traffic of the month of June you seek from D. C checks and weighted figures day carried about 3 times their April traffic a load factor of results of industry, leading net said mid 70 per cent.
Q2, we expect operating.
Mind, it all off of more than 80 per se. It most of it 80% of close of our pre COVID-19 capacity.
And with load factors in the mid to high 17, we expect to deliver about 70% plus of our pre COVID-19 traffic and then as I said, if there's a vaccine a rollout continues and then COVID-19.1 of the managed.
All right with reopening continues particularly of the schools go back at more of it in September that we.
We see every reason to book the guidance as we have this morning up from previously at the lower end of 80 to 120 million today I think we're in a much narrower range of between 90 to 100 million and I would add I think with no.
Of course, we're at the upper end of that range of lower end of that range as we stand here. This morning.
International development that we're seeing we're continuing to deliver very impressive cost performance I think we have together with our union partners and our employees over the last 18 months negotiating very.
Folks should reasonably modest pay cuts it ranges from 5% to 10% on cabin crew, 10% to 20% on pilot.
But that was in return for keeping them, all current and avoiding mass redundancies of layoffs.
That's 1 of the key reasons that we've been able to deliver such a strong and rapid traffic with.
We've kept the crews we have the.
The right people in the right places.
And we've been able to unwind of very quick and rapid development of of reopening airports and handling costs have been renegotiated we've taken that as of the end of July 11 of our force 12 of the Max aircraft have been delivered.
I would like to say that the performance.
Performance of the Max and the first month of operations of Saar has been spectacular admittedly with slightly lower than normal load factors at the fuel performance has been well in excess of the 16% savings promised by Boeing but theres been a uniquely an overwhelmingly positive response, both from our crews the pilot.
I happen to love operating the aircraft and from our passengers we've been operating the system for the first day last month, where any constant you're getting out of Max who wanted to offload could do so without any quibble I'm traveling on the next day. It was like not 1 passenger have felt to off load all of that aircraft yet.
Feedback from passengers traveling on the aircrafts.
And that's particularly quiet.
A very nice experience and as.
As we had I think long predicted that once we've kind of flying the aircraft passenger loved them.
These aircrafts enable us to tap into enormous growth opportunities I don't think and certainly in my 30 years. In this industry are post 911 post Gulf War, there has never been in a growth opportunity.
It needs to Ryanair and such as we have at the moment of.
Already this year, we've announced 10 new basis at multiple basins day somewhere up in Scandinavia, where both SaaS and.
Norwegian of in chaos, that'd be Vulcan basins, and payload did we get into politics in Stockholm, Arlanda 2 bases in Croatia onto.
And from Dod grip, and we've extended and enhanced low cost of yours that sounds Pittsburgh of moat roster of charitable of dose that go out to the end of this decade.
We've doubled our capacity would be enrolled from the Chino as out of Italia reduces its fleet and we've also announced new routes and has stinky do patients they sort of been children in Italy and I get.
In Morocco.
This is just we've barely scratched the surface. So far there are extraordinary discussions and negotiations going on between out of a new route team and both of existing airport partners of ours and also new airports across the entire piece of Europe.
Neighbouring states, who are joining of the European open skies.
To put it in context of growth opportunities of fate confronts us we over the next 4 years would take delivery of 210 of Max aircraft. It would take the fleet to north of 600 units.
Over that same 4 year period, with who talk a lot of both growth, we'll take delivery of 80 aircraft their total.
He would rise to about 200, and Turkey aircraft. So we'll take more new aircraft deliveries of the next 4 years.
The equivalent of their total fleet.
A case of easy jet that there seems to be zero growth in fact of fleets of shrunk in the current year and and we see them at that price range of money to protect.
So they have they certainly won't be a competitor for us on new route development of growth and where we think the real opportunity, though would be as we've seen all of the failures Thomas cooks like E germanwings level.
But there are much more meaningful shortfall of capacity reductions in Congress that in Portugal, where THP has already announced a capacity.
Take hold reduction or total seats reduction of 20 per cent, we think that will finish up closer to 30 per cent.
He has reduced its fleet by 25 per cent of them again, we think that would be more and so there are enormous opportunities. We are seeing some of it will be coming available to us at airports, where previously we couldn't get them and I think if you have the aircraft.
Passenger lift for each of the next 3 or 4 years, we're going to secure space.
Space at airports.
Most of their lifetime opportunities of secure space at airports and expand our footprint.
As an airline today, which has 70 per cent of our departures at primary airports of Turkey of secondary airports, we see that rising to about 8.
Craftsmanship departures at primary airports and 20% of secondary airports over the next 4 years.
1 other issue we should touch on briefly is the EU announced sort of fit for 55 of them.
Most investors again, you will have no impact on our cost base of until FY 'twenty 4 onwards silica of no impacts of the Beast of next 2 years.
It is I think of finely designed package, which introduces not just double taxation on short haul European place, but triple taxation.
Short haul passengers made the EU consumers will now be faced paying not just etfs payments, but also in aviation fuel tax in addition to E. P D and many EU countries like Germany.
Austria and others.
It is bizarre I didn't sneak it both of these taxes are only being levied on European shortfall of flights.
Designed by our friends in the Holland, Germany, and France, and the long haul operators are in those countries are getting a free pass on these aviation taxes.
We believe however that this program will be maturity of that renegotiated.
Yeah, and I think some of it over the next 2 years, we see of significant concerns being raised among EU peripheral states in eastern Europe 5 per small to Ireland, among others, particularly also in the tourism destination, Spain.
The Canaries, Portugal, the Azores degrees of Greek and Greek Islands.
Beginning to realize that what we have here is taxi aviation tax proposals being designed by the Dutch German.
Germans and French nice behavior and means of aviation where in most of those countries people happy of what kinds of a train all of our Mojo.
Name alternatives in Ireland in Portugal in Greece, and Turkey of molten site because they don't have we don't have an alternative we constantly transfer of wheat from flying because there's no other way on and off of these items and we think there will be a meaningful realization, particularly among the tourism industry at the tourism nations.
Some of the peripheral agent.
A long haul is going to have to bear its fair share and at the dose of the Germans and the French conflict here of the rest of Europe of both more environmental of flying while they give their long haul operating as a free pass them, but for the moment of I think in the medium term and we would expect there to be a.
Significant pushback from some.
Some of the tourism and more peripheral states of Europe against these triple taxation proposals and we can take much support that.
If nothing else I want to add in terms of all of the opening remarks, so with that I'll hand to moderation in Pune open it up for Q&A. Please.
Thank you if you wish.
Ask a question please style.
1 on your telephone keypad now sense of acute once your name so that she can I ask 2 questions. If you find this answer before showed signs of speaks you can tell all she wrote shoes of counsel and as mentioned previously please limit yourself to 2 questions per person.
Our first question comes from.
Wished trailing off line kind of muscle of Evercore ISI. Please go ahead your line is with them.
Hey, good morning. Thanks.
I'm just wondering as you as you rebuild your network and kind of get back to some normalized capacity levels.
What capacity level do you think you could get back to your fiscal 'twenty.
The law of 31 euro per passenger or do you have to get back to 100 per cent of what you're used to flow flyer or could you hit that level sooner.
Sorry, I'm not sure if you ask a question about uses of it.
Oh, sorry, your non fuel cost per passenger of 31 back in fiscal.
Good morning.
What percent of fiscal 'twenty flying would you need to do to get back to that level.
I think we will be if there is no adverse COVID-19 developments and you know and we.
We exited the pandemic this all of them.
I would be confident that into FY 'twenty 3.
Fiscal 2 next year it effectively summer 2022.
We will be carrying more passengers than we did pre COVID-19, which has gone from 47 million of change and our unit cost per passenger will be significantly.
Significantly lower than they were in FY 'twenty 1.
1 exception.
That's it.
It really just kind of an old controls.
Escalate B E T C N a N S. P charges, where most of these government monopolies around Europe are now talking about recovering from last year's loss of income.
And advancing I think a T cell types of like next year up between 30 and 40.
And that's even from a per passenger basis.
Not a huge part of our overall cost per se, but it is material, but other than that I think you'll see continued meaningful cost reductions across all of the other line.
Driven sleep IP and the factor would be operating in more than 60, Max Boeing Max aircraft next summer summer of 'twenty 'twenty 2.
Yes.
<unk> per se.
I would say.
And you can start to see something with a trillion dollars of from the next quarter, although the closer to the mid kind of turkeys and then as Michael said as we get into the summer of next year, we start seeing critical mass on the Max and the load factors rule, we start to get boxes, it's already 1 euro and then hopefully improve on that.
That's great and then just for my follow up on uncompetitive capacity I mean, you touched on it.
But I wondered if you could put some numbers on it as you assess the restructuring of European Sharp short haul that's that's already occurred in and Thats continuing to occur.
How much capacity would you say has gone versus pre pandemic.
And as you rebuild your own networks.
Are there any numbers you could put on competitive capacity on your routes looking forward kind of Q2 Q3, thanks for taking the questions.
Thanks to me, it's almost impossible at the moment to predict the competitor capacity because of lot of pet you have operators like Lufthansa IAG.
Our air France, KLM are sitting on a loss, but they're not using them on Italian T. A P of already announced meaningful you know.
Reductions in the fleet of between 20, and 30 per cent and then you've seen the bankruptcy of a lot of other carriers.
I think that into 2022.
<unk> and into 2023, you're looking at any excluding outgrowth of a meaningful of I would say 20 per sensor jokes, new short haul capacity across Europe, it might be like the stock's up into FY 'twenty, 2 because I think some long haul aircraft will reappear on short haul European routes because of long haul it would take longer to recover.
2 of them as a meaningful shortage of capacity out of cost of Europe short hold for the next I think 2 or 3 summers.
And if you look at the order profile of most of the other airlines they have almost no short haul.
Aircrafts on order.
I think youre looking at a 20 per cent reduction in short haul capacity of summer 'twenty 2.
But to sum of 23.
Eddie hit or whether you want to add anything to that you'd be closer to that revenue.
Yeah, I mean, it's you can see like some of it as being 1 of them.
<unk> by the pace of recovery with your competitor of ours as to where theyre actually going to.
Where they are actually of what that this winter force.
Disagreed.
Figure of AR of.
20% is probably the more likely.
Reduction of uncertainty of the 1 that we've been looking at I mean, we can see it as well.
And some of our market share.
Growth taking into all of them just because of this snow and paid sub growth.
Recovery of our competitors plus 20%.
I wanted to ask.
Thank you.
Thanks, Dewey next question please.
It's from the line of Daniel Ruska of Bernstein. Please go ahead. Your line is open.
Morning, gentlemen of pulp.
Dwayne perhaps the question slightly.
Slightly differently.
I mean, where are you seeing those planes, leaving the market and do you think.
I Wouldnt difference between smaller markets around top of Alitalia and the larger markets with the wider groups because on a sector level. There still are a lot of planes registered 2 European airlines at this point.
And then secondly on the <unk> 55.
You know with are you planning to add a lot more cost into this.
There'll be if at all of that we'll have to see what the final policy proposal will be but do you think that adding carbon cost in whichever way impairs the sector's ability to grow as fast as it has over the past decade, and how should we think about ryanair as opportunities amid a slower sector growth kind of in the 2020.
And I think.
Again, if you go back to that of capacity I mean obvious ones of the failures of flight the ease the levels of Thomas Cook and others, but the more interesting I think underbelly is the capacity shortfall of commenced has come up Norwegian has collapsed they've gone from a fleet of 122 of her to try to go to 20 aircraft.
S. A S. It's called show total capacity out of triangle has already announced 25 per cent capacity reduction, but I suspect they'll do more and EAP is in the similar books.
Meet that then you have a the question is how much shortfall of recovery is there do those times of operating air, France, and others not what drives a lot of that I think it's.
And of 22 ended December 23 is a huge amount of their short haul capacity is there to feed into and to feed from their long haul networks without the long haul traffic without the Chinese of the Asians wandering around Europe next summer, we see that you know I think that there would be a huge pressure on those legacy airlines of the subsidy junkies.
Similar to all of them I think they would keep short haul capacity reasonably modest because they're under some pressure to repay debt and refund are repaid stay date.
The only 2 players out there at the moment with any significant short hold orders of over the next 4 years of Ryanair, but with 210 aircraft on order and waves with about 80.
He says and laser and payoffs at the moment.
They did let go of lot of pilots and cabin crew. They are clearly struggling to redeploy them or they're not current I mean, where end of last couple of weeks waves of been counseling hundreds of flights on a daily basis, and Italy and across Central Europe, we've seen already in Vienna, where they compete with.
Both the council of 14 of their main the main trunk crude sales at the end of the summer July of the oldest they say they're going to be dumped at September were not sure. They will and so they have enormous operational challenges and I know there are some misguided analysts out there who believe fleets when congress of the world, which despite the twice a day of a higher cost base of Ryanair and snow.
With that ability.
And independent of different Western Europe, but we.
We think that they are suffering enormous challenges at the moment, including wet leasing in Romania of aircrafts to pump up there pretty small Italian.
Operation out of.
Time, when we are I think of our load factors in Italy are about 70 per.
And most of them, there's a mid fifties.
So, but the real focus I think for the next number of years will be the net.
The slow pace of recovery I think of the short haul operation of the legacy carriers, because they won't have the long haul of feed 2 of from their sort of full operations in the meantime. The question is how long would it be.
Sent plus sales debate block slots at the major airports community. He was going to 1002 blocks of them again until the winter this winter, but they're getting down to 50.50, and I think we will have a major push on for summer of 2022, when it's going to become an answer from the day. They don't want to use those slots they have to lose them.
And on EU figure of 55.
Look there's no doubt that the sector as a whole is going to face increasing.
Hi.
Yeah.
Uh huh.
Byron mentioned partner share of family between long haul operating from a shortfall.
<unk> been bearing a negligible part of.
Yeah.
That's textbook thoughtful of flying but connecting traffic for example of the Deutsch, who talk a lot about environmental impact of aviation KLM of complete free right on all connecting traffic of 2 went from skip all of those kind of environmental scams need to and particularly when they're taking place in the countries who are.
Most likely to lecture the rest of Europe on Lockdown of of how we should behave environmentally particularly with regards to air travel tax you will put your own of aviation of house in order first before you start lecturing the peripheral countries of the tourism economies, who are hugely dependent on intra EU air travel, but I go back again to all of what it's always been.
<unk>.
Potential taxes that are levied on a pro rata basis.
We will not immediately instead of March.
All of the price differences.
We have over all of them of airline.
And therefore people will I think if anything.
The growth of at Ryanair.
Enjoy over the.
Next number of years, because if there's an overall ratcheting upwards of the cost of air travel and the lowest cost provider of which would be Ryan do you have it in all markets of north with Easyjet or anybody is that we'll do better we'll recover strongly we see that already borne out in the sales recovery.
The neighbors of deliver a much faster and stronger recovery than any of the.
The competitors and if you look across to domestic U S. A the recovery post pandemic recovery in domestic flying has been much more robust they've gone back to pre 2 above pre COVID-19 traffic levels of we think we would benefit from that over the next 12 to 18 months here in Europe.
Question. Please.
Low cost of turkeys that comes from the law of Satish suite of come of strategic. Please go ahead your line of side of it.
Thanks again.
Couple of questions. So firstly on the ancillary revenue.
Obviously, you've seen a big step up in ancillary revenues.
But are you seeing further of additional opportunities.
In terms of new products and Baidu seat normalizing from the current level of its all 22 euros.
And the second 1 on the hedging what is your thoughts on the hedging of both for fuel and carbon ask anymore.
FY 'twenty 3 and beyond.
Okay, Andy why don't you take that question and I'll ask Neil tenants coming out of the.
Hedging of the comp and hedging question.
Yeah.
Our reserves are strong there, but it's primarily driven by net priority boarding and seats.
How do we feel.
I've indicated on previous calls for the last year, we've been working on.
From initiatives here in terms of ins and out of that dynamic pricing of dos.
But I would caution that we are in no no load factors at the moment, where volume and selection of seats or whatever it may well be somewhat of a premium part of icos or is there still more initiatives to calm and both of them.
And over.
Their sales so road is part of it.
Particularly on the coal volumes of Eh.
Seats priority boarding and also of by how they are presented with and how they are price on individual rooms, and we've been doing from doing a lot of work of that but we're gonna have to wait for load factors to return to see how effective that they are.
Okay just moving.
Just to put that type of Eddie but when do you expect ancillary revenue per passenger to rise faster or slower than it had been tried passenger traffic recovery of the next 2 years.
Yeah, I mean, I think it is.
I would expect expenses to rise what I'm, saying is that I wouldn't get carried away with things because.
The strong.
Performance in particularly in seat on seat of lower load factors you'd have to see what our that translates when load factors of targets as people may weather being conscious of where they pick seats. During the COVID-19 crisis, but there are lots of other initiatives that are coming down.
Im reasonably confident that we're going to see some growth.
Purple products and ancillary revenue just to ask that all of them.
If we can retain decline of 22 euro are slightly below of you're seeing as passenger traffic growth is your that'd be a pretty good performance then we'd be hoping to improve on that into next year and beyond just on the hedging and the carbon we're well hedged for this.
Call it 60% hedged at $565 of metric ton, which is below of about 630.
Tom and the market's day, returning 5% hedged into next year.
About $600 a ton.
Plan to potentially move that up over time to about 50%.
Sure.
Possibly hold enough assets, we're looking at some other structures on top of that carbon well hedged 100% hedged for the current year of 'twenty for your own EUA, which is well below the 50.52 and euros of its trading off day and again about.
25% hedged for next year, we'd be holding off on hedging.
Waiting to see what was sort of happening with U K ETS. That's been confirmed in the past couple of weeks. So when you start looking at adding a little bits of our hedging into FY 'twenty 3 and beyond.
On the carbon.
Okay. Thanks, John next question please.
Thank you and our next question.
Income from the line of many of the Kayani of Bank of America Merrill Lynch. Please go ahead of your line is open.
Hi, Thanks for the call.
I realize that heightened visibility is no but that could you indicate in your net profit guidance of small loss to breakeven what sort of tightening.
Income demand is kind of baked into that.
Guidance and then second me operating cash flow coffee was it was very good in the quarter driven by bookings and how should we be thinking about operating cash flows in the second quarter of I like activity picks up thank you.
Okay. Thank you very much I mean as usual on these calls we're not going anywhere near pricing guidance.
It's completely a too hard to call. It. We think we are reasonably accurate with our volume guidance. We think we'll continue to deliver strong performance on ancillary revenues, but there's too much oh.
Uncertainty over.
We've seen and we.
I wouldn't add any color to that.
I understand we have I think the overall I'm feeling for the year is a an improvement worrying too of small.
The last maybe even breakeven, but I wouldn't break down what the spring stone operating cash flow is clearly second half.
Probably much more heavily impacted by Capex.
We've now stumpy going to repay of we'd be going to pay once war pre delivery payments to Boeing and and so I think it was flattening out from here and actually type of decline as we get towards the end of the year of need too much more peak capex needs do you want to out of their own cash flow.
With you, but I think that's fair enough.
First of all of our Capex come in in Q2 of about $200 million of that all of it of course of the balance of the year, it's about $1.2 million in Capex. So you'll see that drop occupancy towards the end of this quarter and we would anticipate that as we get into the fourth quarter, hopefully more normalized bookings at that stage.
When you start to see that feel not been says as of year end and book of dropping back from that there's an X number of months.
Thanks Neil.
And I'm just again continued on the pricing guidance for all participants you know what I don't want to get into any details.
He is out of a philosophy here and I think it's just been purely vindicated in the recovery.
<unk> 1 in Q2, we will be load factor of active price passes we are determined to recover traffic as quickly as we possibly can and then I think over the second half of the year, we would expect to see load factor recover back up to high Eighty's, probably won't operate about 90% this year and as we build for back of forward.
<unk> gains on load factor than we would expect to see pricing recover on the back of that next question. Please.
Thank you. Our next question comes from the line of Stephen Furlong with Davy. Please go ahead of your line of sight right.
Hi, Michael.
Can you just talk about as you build back of 1 of the harvest.
All of this.
Our book of improve environments, I mean, obviously of hub.
So this 2000 new pilots in the next 5 years, or so and trains and things like that.
From the second thing is I was just wondering with the 60 plus.
A 200 aircrafts coming from next summer.
And presumably you're in discussions.
How do you win.
Number of them.
Airports on the launch of new bases in share in Morocco, So as Mike just talked about that would be good too.
Okay, and I'd like ask you to do the second half of that.
The new patient new route discussions I mean pilots and cabin crew.
So it just never been better, but there are enormous short haul of challenges.
1 of the challenges we have as an industry not just ryanair is we've been essentially grounded for the last 18 months. It has been very difficult to keep pilots and cabin crew current pilot has to fly once a month and cabin crew I think have to fly.
But you know what this wrong, but if I do correct me. Once every 90 day. So about 3 months. So it's been with a very curtailed scheduled we've actually been flying empty aircraft up there to keep pilots current and cabin crew current because we knew that the recovery when it came to be very strong.
We believe that's 1 of the reasons why easy Jet's recovery has.
I'll get flow that they have grounded of lots of aircraft pilots and cabin crew of therefore, they're facing currency problems. If you didn't keep them current you to put pilots package of stimulate or say it towards simulator training and cabin crew have to go back and do it.
Hum quite unproductive for currency training courses again, and that's just difficult.
Been filled it's a huge logistical nightmare and I think we've been vindicated in trying to keep everybody coverage, because we thought that the recovery would be strong.
As we emerge jokes with day, there is a huge surplus of pilots.
Pilots, particularly on 730 sevens.
Most of Europe with of Norwegian collapse them they were the only other.
So it gets consenting free definite probably ever in Europe, all sorts of goes kind of of yourself don't huge numbers of pilots of just.
Cut them loose in the middle East they are backing essentially in Europe, and a lot of the Asian carriers have caught back although in recent months of they start to re recruit again.
But they appear to be trying to recoup among agent.
Nationalities, rather than Europeans.
So.
We are also have we started very aggressively our cadet training schemes, which of you know they kind of dried up and after all we have to kind of piloting the rocks drink like you said late 2017 and.
Currently we have more than 350 pilot cadets and training that they were paying.
I think of an average of about 30000 jewelry was a day.
Would flow through over the next.
12 to 18 months, we're opening up and have 1 of our partners reached deal for very large new aviation pilot and Kevin from trading essentially doubling which we'll announce shortly.
But there's a huge of the cabin crew side again.
Cost of availability out there, but there is a 5 week training course from Abbott issue. So the challenge for US is we have enough pilots and cabin crew now to operate 90% of our pre COVID-19 capacity through July and August, but it's tight, but it's particularly being impacted to where you think like the UK pandemic, where people are working you know despite the fact.
There's lots of Dublin vaccinated with seem to be getting paint and told to go to isolate for 10 days, which is of nonsense way you doesn't factor, but it is 1 of the days.
It means a huge challenge of of Cooper. So into the next 12 months, we will be recruiting huge numbers of pilots and cabin crew gets winter just to crew up to 60, new aircrafts, we have for next year.
So.
There was a time of the normal attrition, but again you know I think the collapse of competition the capacity cutbacks across Europe.
You know we are and we have worked very closely in line with unions of the last 2 years to explain tableau.
It's better that our people take very modest pay cuts last year of this year, we start to enter repurchase.
Those sorts of of restore those pay cuts over the next 2 or 3 years, we're in pretty good shape, and we don't foresee any labor force.
Shortages over the next 2 or 3 years and just as important we don't see any labor our staff's inflation over the next 2 or 3 years 1 of the other challenge that will be in the short term of the next number of weeks of though is.
Repay airports and handling companies, we had a lot of problems out of a lot of airports over this weekend you know you've gone straight back into kind of the peak weekends handling companies who of short staffed airport check in shorts that airport security shorts that we saw our on time performance Paul from kind of 95 per cent to 80 per cent.
Saturday and Sunday, mainly as a result of a T. C. Stopping show you know they took nothing for 18 months and then of course as usual differential of the Germans are generally short staffed on Saturday mornings Ware.
There.
And we've had airport issues as well, we'll work our way through that but it could be a bit painful over the next couple of weeks.
Oh, I'm, sorry, and then I think we're in reasonably good shape. It summer of 2022, but there is a herculean recruitment and training job to be done.
Do you want to touch on the aircrafts out of the aircraft that they.
All of them.
Both of them.
Kind of just kind of about 1 point there.
On the on the part of it I mean, our recruitment is.
<unk> exclusively on the Capex side, because obviously, we have enough captains and everything for not only this summer of next winter, but next summer as well because we have all of the people coming through of commander of grades. So.
And so it's primarily.
Of that first half of them to take care of Tibet.
Just on the.
Some of the like there are.
Sort of cat capacity allocation, you're looking at there of a competitor retrenching and we've got the new aircraft that have come in and you've got airports now actively looking for a day you know the the attributes of that 40% less noise emissions.
And we've been able.
Yes.
Exploit those opportunities you're looking at the chair of the ones that I would call eggs are in Scandinavia like our Atlanta, I mean, we've been talking to them for the last 20 years.
And they realize the writings on the wall of Americas SaaS aren't growing.
Of the Norwegian or all of of gum out of our land and then we.
So taking the opportunity within that sort of Nordic region of we we launched 9 routes out of hand thinking again Norwegian gone out of there in Helsinki looking around as to where their growth is and then we have it's different from the last time, we launched any sort of capacity in Scandinavia way back in 2003.
Most of them, where we're flying from secondary airports of secondary airports. So we've got those and we've got extra capacity going into Gothenburg in places like that and they see opportunity there for us to start with net that's a network together and in the face of reducing capacity from SaaS of Norwegian you looked at initially there of where most of.
As a free and airports are saying why aren't we of Ryanair base and they're sort of again.
It took us some time to close at the sort of trend deal, but we've got a very strong domestic network out of there. We've got still some announcements we aim to do initially as we fill out of network. There we are in.
Hi Polo, we've opened the basin from being so we put extra capacity into neighborhoods and into of human genome of where where is actually a 10th of a hang 8 of the 90 day to day launch.
So and then Youll see places like Morocco, where we where we see whereas the government down there is anxious to say where's the growth was coming from there and.
Mark we have and they want to substantially increase our capacity there and part of that plan is to open the 2 base aircrafts and I get here, which will which will go particularly well I think in the winter time, So again it's.
Airports are coming to us we've closed of long term cost deals with our 3 I.
And we manage our homes, which are as Dan said, Bergamo, and Charlotte and everyone.
Everyone is saying how can we get a piece of that and I think those opportunities are going to still presents receptor of some cases are still slow to call out and think that it's all going to bounce back on there isn't going to be 20% of production.
I suppose of entry of European trial at capacity, but we're certainly seeing it out there and we are in like.
In countries like particularly easily I think say repeat of that theres airports pain or their management of our shareholders of saying why don't we Havent Ryanair base.
Because it's the only route to growth.
Great. Thanks.
Okay. Thanks, David next question please.
Thank you that's from the line of Mark Simpson Goodbody. Please go ahead your line Sir.
Yeah 2.
2 questions of 1.
Jokes, the Max is performing well good reception from customers.
But I think.
Michael it's been indicators of surprising against previous guidance can you give us a.
Broader feel for how you see the Macs performance.
It seems like turnaround times I know difficult.
In the circumstances of Covid rules, but experiencing 2.2 and a bit more about that.
Then longer term you've talked about.
The goal of 12% of SaaS about 2030, well ahead of the fix of 55.2 of 5% target.
1 of them interested there is how do you achieve that science of infrastructure issues are clearly getting to be 1 of the roadblocks to achieving those targets. So do you have.
Fans around yoki basis dense it bugaboo for some form of SaaS infrastructure to help you achieve those targets.
Okay. Thanks, Mark well ask the director of sustainability from a founder of me to answer the second half of the question I'll take the Maxwell and Neil you can add anything you want to do.
I think the minds of performance in.
Plant that's been extraordinary no.
But I would also of caution you know, we're operating with a load factor of the last month. It looks like it's kind of about 70, 576% as opposed to normally in July with our June July we'd be operating up at around 19, 92%.
So we're flying slightly lighter playing with the turnarounds have been.
The person day, 1 effect of 25 minutes no great issue of remember it is the only 7 of extra.
No.
Seats.
The turnaround no issue of coal fuel performance has been meaningfully better you know close to 20% saving but again I suspect that as you get back up to more normal I E.
Load factors, but I think we are very confident now that the aircraft with COVID-19 at 16% or slightly better than that on the fuel saving.
<unk> performance has been extraordinary and it's been meaningful kind of feedback from passengers and crew how quiet. The aircraft are not something we would ever go into of kind of sales.
We were worried that the stocks so that that would be of kind of pushback from passengers.
We've gone to some considerable length to indicate that you know if you want to get off of the aircraft you can and not 1 passenger in the first 5 weeks of operation has wanted to off load off the aircraft.
There's lots of nervous passenger was out there. So it is generally.
Load count remarkably well the pilot feedback is universally positive.
The handling of has been exited the performance of the aircraft of the next 1 day.
Like shiny new toys at the best of times, but.
It has been very very favorably received in the cap of true like the aircraft no issues with.
Generally at least of new layouts.
But again slightly it's all of the performance of the first 5 weeks of each line.
He and I kind of artificially enhanced but the fact of without breaking it load types of the high seventy's instead of load types of isn't the total 90.
We think that's a good thing, though it does mean, we plan to take our 12 aircrafts into probably.
The nuc and days of August the fact that we have 10 or 12 of those aircraft in the system through the summer when weather conditions of goods pilots and cabin crew rotating through the aircraft of everybody getting his feet of course is a really poor.
For 2 of its nice slow introduction into the system and then this winter we take probably another 60.
The first close of aircrafts get Boeing can deliver the mall at a time when there were no hundreds of great pressure. So from a kind of a just an operational safety.
It's good that we were able to introduce these aircrafts out of timing when we can allow the pilots the cabin crew the airport the hundreds to get use of them. So it has gone remarkably well, but the performance of the aircraft.
<unk>.
And certainly the 1 we care most about which is fuel consumption has been exceptional I believe to be fair, we thought it would be because Boeing we're willing to guarantee 60 per cent fuel savings.
And again I think that would be key in our pushback on the fit for 55 of taxing short haul aircraft here we are investing.
So it's from 'twenty baking into free each of new aircrafts that consumes considerably less student needs remarkably quieter than almost any aircraft operating in Europe.
It should be reflected in future environments of taxation.
Thomas do you want to give us a quick run through on SaaS and most of <unk> developed.
Improved supply of best they ask for 2030.
No problem Michael.
Mark Thanks for the question I think obviously at the moment on the infrastructure of yesterday's issues. That's always on the partnership with Trinity to try and 2 weeks after the best to invest in and shower Appeals of Florida is a key field, whereas most of the basketball and some of them back in front of us.
But of all of the 12, 5%. So this would be.
You have to do with Trinity in the next 12 months of that obviously 1 of our key major suppliers of our key phases on what day investor community put in but our stock to meet the target, especially towards some of our main focus is a net 24 of them.
Yeah at the moment, they're the only key markets, where we can think of sources of in Scandinavia, and we would hope to speed up.
Many of them get rolled out over the next few years, but as Thomas said significant investments.
<unk> needed to get the right plans in the right place.
It's also 1 of the push backs as well on the fit from 55, you know they are announcing all of the taxation, but no. There's been no allocation of these taxation revenue to developing some state are.
Hi.
You May say ask so Dave.
They've set the target themselves the 5 per cent debts, they ask for trading Turkey, but there's the programming silence on how you get there and how you put the infrastructure in place at European airports, so we'd be calling from what's more work from our Dutch friend, Mr. Tillman and some of the other eco warriors there in Europe.
Volume start taxing your own Bill Chair line can be tell us how you of what you're going to do with all this money to actually help us to exceed these ambitious talk of a sudden it's yes.
Next question. Please thanks much.
The next question comes from the line of savvy seats at Raymond James. Please go ahead, and you kind of.
Hey, good morning.
You know and you know.
You noted strong bookings in August and September I was just kind of curious if youre seeing any signs that the return to office just still uncertain in Europe. It seems that perhaps our highest florida to the usual seasonal drop off in traffic and that you're seeing based on current bookings and then also just to ask a follow up on that in the near term bottlenecks.
With that Michael.
You talked about crew in airports I was wondering what youre seeing on the maintenance line side and if there's any.
Kind of a supply issue there and it's in addition to route charges.
<unk>, if youre expecting maintenance to be of headwind over the next couple of years.
Okay. Thanks Peter.
Total bookings of needed might not come out of the maintenance side on the forward bookings look.
We're holding the line in the lab.
Speaking of here at the moment.
Focus for the last number of months, what's been to try to stimulate and ensure that we could provide for our operating at very strong recovery income Q2 into Q2.
8.9 million passenger or we did put a 8 million passengers of June 9 billion in July we might get cash just $10 million in August of.
View of life is that you know if 80 per se, so 85% of DMT and out of a population vaccination of by the time you get to the end of August early September the schools go back to work or the schools go.
Great.
Part of most families have been able to travel and we used a good safety and confidence during July August of peak auto net European holiday season, then we think there's going to be a we start to replicate what the U S has seen a very strong with hopefully of short haul intra EU travel business travel guests back meeting suppliers.
Back conferences.
Poland events get re fix we think you know we see if we get 10 million in August and again, there's no adverse kind of consequences. We see no reason why we wouldn't maintain maybe 10 million interest of timber and then we're looking out into Q3 and I'd be hopeful of averaging 10 million passengers a month.
Players in Q3, as well so and it may be even better than that I think people who've been locked up for the last 18 months will want to go for weekend breaks away will want to go to the Christmas market will you know of day, so there'd be a strong short hold recovery and I think business problems that you have.
All of the lots of talk about zoom ending business travelers.
Oh did you I haven't met your suppliers for the last 18 months, you need to get back out and seem to be having to make the sales calls you're not going to do that 1 zone. So we.
We think in almost all of the ovens.
I will give you a very strong rebound in our weightings of of Bolton Christine's over the first of all of those stop of the events that were disposed of people haven't seen so.
We.
Don't you think.
Not a believer in the peak of all components of the office I think the office of employers will want people back from the office I think there's no doubt we are facing much more flexible working conditions into the future.
If you look at what we're doing in Ryanair, where St. Pete we're busy not back to the office. We are looking to go out to a.
We see agreements with our people that you know maybe you could do 3 days of week in the off of 2 days of week from home.
It would be lumped without kind of flexibility you forget it at all so we're going to close of equal was not return I think is absurd.
Think socially people younger people, particularly want to work from us because that's where they eat.
It means a lot of people so.
We kept coming back and I think the best indication of thought of is the U S.
A recovery in U S. A domestic air travel I think that would be replicated in European shortfall with the 1 exception is that we will still be missing the long haul connecting traffic on which the legacy or the state.
We think of jumped piece of so dependent upon for filling up their short of that could lead to still run all of the shortfall of capacity of just don't prices. We don't think they have the balance sheets or get depends on state aid allows them to do that with tons of as already said, they're very focused on only planning of what they can feel of repaying of state aid as quickly as they.
We think most of the other airlines will operating up basis, we will take up most of that shortfall of slack and with 16, new way of kind of big Liberty is awesome.
And then on the maintenance side, yes.
So every time thanks for the question there with the exception of just seeing of ramp up when capacity on cycles of these grocery shop.
They kind of major increases coming through in Baku, we've locked in better rates what are our engine maintenance providers going forward, we felt of huge expertise on maintaining the aircraft's ourselves over the years and we do a lot of our own maintenance.
So no difficulty getting access to the appropriately qualified engineers in the box per taking in more.
No.
And of brands is to allow for growth over the next few years, you got new hangar capacity coming on train and places like Surveil and we're looking at building a couple of new hires across Europe over the next year or 2.1 of the benefits of the Max coming in as it enables us to exit some of the older and more expensive to maintain.
Some of kind of aircraft.
From the <unk> setting youll see some sales over the next number of months and years, we've already handling all of the leased assets at 3.7 which.
And then we would have liked due to the delays in the aircraft coming in from Boeing that's all being sorted out so I don't see too many headwinds are savvy.
<unk> maintenance already for the next few years.
And I would just factor that we can be.
We've been reasonably judicious over the last 12 months, we've invested we've acquired a new office building beside ours that the air site, where we've opened up a new Ryanair clinical center, where we moved all of our engineering seat planning in there it's about a 13000 square per.
We as I said will shortly announce of great new we've invested about $10 million. It of New Aviation training center close to doubling airport a force simulators Comping crew training it kind of quadrupled our training capacity in Dublin and in addition to large kind of crew clean earth of whole frames per ton.
Building or so we've kept investing judiciously through the crisis of the shutdowns and we now have those facilities and those resources coming on stream for both of our pilots and cabin crew and our technical team.
The next question please.
Thank you that's from James Hollins of Axa and Exxon.
And it'll be even be pair of eyes.
James Hi.
Good morning.
Michael Eddie you sound like a couple of kids of Christmas When you talk about growth opportunities in New York, Simon you've clearly seen growth easily Scandinavia as good. Examples I was just wondering if you sort of need to or even want to go after some of the.
More of <unk>.
On the big breaches of the state take Junkies your words not mine.
In Western Europe, whether there's significant sufficient growth elsewhere.
Second 1 ton of muscle Julia <unk> zone.
From this fits of 55 of your obviously apoplectic about we sort of terrorist attacks and it might work et cetera.
I'm just wondering what chance do you actually have the getting some changes to fit from 55 and wait and they just say of course it deals with local.
Okay, I'll ask Judy maybe you could come and Thomas of either in the second half first half, yes, I think we will see more growth, particularly at primary airports I mean, we're pushing.
It started for example for further release of Italy, and Portugal, where P P and out of Italian instead of sitting on 1 of them.
As everybody knows they would use in the future because they've already announced they've already reduce the fleet.
There will be further opportunities in Germany, where.
There had been significant closures of.
Hum German wings.
Does it reduce capacity but.
Again, we'll be opportunistic, but I mean, I think most of our growth. If I was to look at the next 2 or 3 years, where would you place. The 200 aircraft of wounds that would point to would be 8 and first of all in would be those larger base of airports, where we've already rolled out.
Of all day long term length of things of our low cost of agreements stumped, the Bergamo short of law.
And I've been out with the pivot there would still be a lot of new route development in Scandinavia in what we would call of central and Eastern Europe, where we're seeing pullback spike Lee and others. They seem short of aircrafts or they're moving aircraft.
Cigna E Cigs, Dubai and elsewhere.
Italy, Spain, Portugal continued to be very strong contenders.
So more capacity development, we were investing heavily in of new maintenance facility in Seville.
In France, we have opened up bases in to lose I think they end with a base of opening in Paris.
China and the U K, there's also opportunity there although.
They would be I'm not sure of how much more new base opportunity buildup of coke through a number of U K airports, we've announced the new pace of new capital there.
And we are pushing for example, even in Holland, where.
K L M bed blocking strong set of skip.
Although we continue to can I ask why allelic staff, which is owned by KLM is not being opened we ask quite montejo beside Lisbon, which is owned by a day.
It's not being opened that's what we can deliver further growth in those markets. So.
I mean, I've never seen in 30 years, the amount of growth potential we have over the next.
All of that for years, we could allocate the 200, new Max aircraft.
Twice over I think of the next 4 years, we are not able to do that so we will be judicious. We will also churn in some of our own underperforming.
Airports in basis because.
There is more growth opportunities out there.
Growth incentives out there then we can I would say manage at the moment.
Julian said, maybe Thomas do you want to.
Fit for 55, and how we pushed back.
Yeah, I'll kind of any quick to James here.
Uh huh.
Well theres millions of limit.
At the moment of appeal of taxation.
They're under have.
Okay.
This proposal of generally emanate from countries in the old Center of Europe in the Netherlands, you see some support for that Badger and parts of Germany and parts of products, but those are our contracts, which are very well connected.
Road and rail infrastructure.
I've never position is dramatically different from that of.
Oh of countries on the periphery of Europe from the bulk of space from Scandinavia adopt degrees.
And then through the military.
Countries, which are dependent on tourists.
They are very concerned.
The increase in net cost of.
That's that's our process may break.
Their contract with the government in those countries.
As part of our lobbying efforts.
Brussels.
Our conversations in the index.
So of the European Union about the stocks will not be.
Swift.
Actually I think there won't be a lot of upset from some of the.
Tourist dependent nature of the suggestion of the cost of assets may need to go up quite significantly over the next few years. So I think this is.
Sure.
We will do our best to highlight those.
And of qualities, which are being proposed by.
Ah patient measure of it only targets short from a rather than a trophy.
No.
Just on and on your point of change on car seat.
RCI offset credits and all of that I'm not.
Got it.
At the moment, they're trading.
And 3 claims net of the card of the UA prices. So there's parts of them too much of our haul long haul will do.
Okay.
Thanks, guys next question because we've got the pain in this call of 11, so we need to pump get through a couple of quick as we kind of I don't have 5 minutes of this call.
So the next.
From a lot of new claim of credit Suisse. Please go ahead of 2 alongside of them.
Hi, there.
Yes.
1 of the vacations with respect to obtaining an obligation charge increase prospect.
In fact of attentions on timing.
The second question just with respect to the.
Excellent share them.
Carbon consciousness continues to develop among consumers is there an opportunity or even a need to prevent your carbon footprint.
2 competitors from the booking process like people like Sky kind of do.
Or how do you think about your communication of our back going forward of Michael.
Okay, I Didnt hear all of that question, but the needs of speed Neal can you went through the first half of them have charged and maybe Thomas briefly answer the second on the carbon footprint as far as I can tell.
Okay. All of them are popping out of charge question over to Julian So it was a bit hazy, though so Neil could you maybe give give that again, we just couldn't.
Correct you on that.
Yeah sure sort of Skyscanner of for example will highlight of your carbon footprint on a given route relative to competitors is that something ryanair should be doing to communicate more effectively with carbon conscious consumers going forward.
Yeah on the carbon side and factor in the last number of days we've.
Think of the carbon calculator, which enables our customers to fully offset their carbon footprint that is very much open line and we've already seen good pickup in relation to that and we're continuously looking at different ways of differentiating ourselves.
We're not shy and pointing out that as people switch to ryanair.
We've launched a reduced our carbon footprint by 50% comprised of legacy carriers.
To be more comps like that going forward.
Often to India and the booking process, yes doesn't mean, it won't be I sort of stage in the future, but the carbon the calculator.
The most recent initiatives are proving very popular.
I think look there is there any of that you ask the level is around any of the Bowen.
The eco label, where the airlines will feed into information like the Skyscanner side of things at the moment, Scott you kind of rank yoga calculations are very generic.
Fully reflective.
All of the actual numbers of there is a bit of work going on up on that as of March.
European.
I think people are getting more aware of things like CDP as well in raising of math enough of helped drive decisions into the future.
Okay. Thank you every day question. Please.
And that question comes from the line of Karen Costello of UBS. Please go ahead.
Hi, good morning.
And with that you're moving more into the primary airports you sit from 70 to 80 and kind of cutting back a decade.
The sub 50.
Are you targeting of more affluent client base and you know at some point, where we actually see the average fifth rise just just given the experience cumulative philosophy of that.
Hasn't been the case.
And then just secondly, Michael.
And any quick thoughts on the customer advisory panel of this is part of always getting better and you know what kind of questions would you try to get them to answer the size and shape of the FIS with better service or something like that.
Okay. What's your thoughts of tax question, I'll I'll give that back to Eddie.
Some of the coast of panel.
Just in terms of the you did the move into more of basically getting more of a slump of basically more aircrafts at primary airports is not some kind of quest for and ask them when client base.
It simply ask being opportunistic that's where the slots are available and that's where some of the better growth deals at the moment because those airports are the ones suffering the greatest.
I don't think in capacity of lost through Covid.
Leuthard rise because we get more excellent plant based milk and you know we are happy to take more affluent customers are more ordinary customers. They all pay and from the same.
The fate of the St fare classes, we don't discriminate, but I think it's inevitable.
But what we're really I think volume fair rights within the next 2 or 3 years will be shortage of input.
EU capacity.
You know there is going to be meaningful shortage of yourself of.
Capacity shortfall of EU capacity reductions of 19.
That and a combination of that and probably increased environmental.
Of the type of things on that.
He put upward pressure on airfares and yield and we will be poised I think to be of significant beneficiary of that as we have rolled out of 210, new aircrafts load.
Our operating costs.
But probably if anything of less intensely competitive environment.
Those markets, where we would expand.
And you touched briefly on the cash cost per panel.
I mean, we of the first meeting of that in early September.
Really behind them it supposes is building.
Our digital offerings of taking it from a customer service point of view day of travel App.
Kate information gain changes.
And time information et cetera, but there's a lot of other developments coming out of that over the next number of months of when we've just seen from the customer and chairman of <unk> from the panel asked about it.
As they have in some of the people on that part of it already of Santana really active in terms of things suggestions.
They have also of what we've learned from the whole of Covid.
And our experience of refunds dealing with disruptions on the day, we've got from them.
I signaled as of last time, we will have some announcements later this year on how we deal more efficiently with customer.
Customer.
Construction for the of the less than 1% of Pfizer, we have disruptions on and how do we actually get that information out to people that are 240 airports. So that people know exactly what's happening how do they get their refunds processed how do we deal with EU 261.
Deal with that in a much more efficient manner, that's going to be.
This average I mean, we are like we we still retain all of the.
Yeah.
All of the other initiatives that we've had over the always getting better program of the 2 bags on board and all of that we're going to continue to build on that but its really of bags, while we narrowed from disruption more R&D bridging of technology in terms of getting information.
The focus of our customers. So we're really looking forward to the first meeting with the 7 people that I think across of babies.
Across 7 different markets. So, we'll let you know whether that's of the next call.
Yeah, No we've gone out we've gone over time, but we look we're not 1 last question. If in fact, they chose it down if we missed anybody please roots of questions.
Information to be of Sarnia.
All in of Neil and our peak rates of close to it in the Investor relations of panels. So let's take 1 last question of mother's day.
Thank you we have a follow up from no Glyn I missed your second question. So I know grown quite of sustained answer.
I just hung up so I will take the next question from our accounting of doors of Morgan Stanley. Please.
19 of monocytes.
Hum.
I believe it's quite quick.
Of the yields at all in this first quarter that has kind of the first quarter 'twenty..2 is there a mix of routes effect on load on lowering yields meaning more of domestic 1 more really short routes.
It's taking the price down or is it just a.
Please go ahead of really active price coming down and my second question. If I may is the supply of reimbursement that we got this quarter of 140 million euros.
More of these to come.
Well, firstly I think no there won't be more of the supply of reimbursements of at least I hope there won't be any more in supply of reimbursement.
We've negotiated now that we're in sort of the recovery phase reimbursements, we have negotiated with not just 1 but a range of suppliers, we think will come to an end.
There are lower favorite new year's day to day has been a function of Q1 of very much leisure traffic or Russia of booking curve.
We would normally glitches of someone with very strongly.
<unk> bookings people who've already booked all of their holidays, we had almost none of that of the system because of the huge COVID-19 uncertainty. So as we went through when you look at the speed of the recovery from 1 billion passengers in April of 2 billion in May to 5 billion in June 9 million in July that has all been built on very late very close in and aggressive pricing.
Stronger capture that volume, but then we believe that that would begin to reflect it tells you named marked rising fares and yields probably towards the back end of the second quarter, but maybe into the third quarter. Once we get back to kind of posts of pre COVID-19 norms all of that presupposes that theres no adverse news flow still further introduction of restrictions.
On passenger movements around Europe and schools reopening of September.
Okay, ladies and gentlemen, thank you for your participation. This morning, I'm sorry of mutual recorded shortz. After an hour as again, we said look which I hope we tried to emphasize that the recovery is well underway. We are exploiting net recoveries faster and I think much more operation.
Fiction D efficiently than any other airline in Europe.
I think if you look out over the medium term into the next 2 or 3 years, you have a unique opportunity with the delivery of 200 to 210, Max aircraft all of which the first of which of my would be delivered out of our operating exceptionally well and huge new growth opportunities.
For each distinct primary and secondary airports and you'll see us I think grab of significant.
The wins on market share front across most of western Europe, Western central and Eastern European markets over the next 3 to 4 years as long as we can safely say that by September of this year of the pandemic is behind us and there are.
Yeah.
Developing cell phone net.
Vaccine resistant and.
Vaccine resistant variant of the restoration of Lockdowns.
With that said if I'm I apologize, if we missed anybody's questions or didn't get round to you. Please call Neil and Peter in Dublin. This morning, we'd be happy to speak to all of you individually there's no roadshow for the Q1 sales here.
And with that we look forward to speaking with and hopefully meeting with you in person onto Q2s at the end of October Thanks, very much everybody good to talk to you about like.
That concludes the conference. Thank you very much for attending you can now disconnect your lines.
Okay.
Okay.
Norm.
[music].
Okay.