Q2 2025 Ryanair Holdings PLC Earnings Call
That's been declared to be paid in February 2022.
Looking back at the half year, our ancillary revenues were resilient rising 10% to $2 74 billion slightly ahead of our 9% traffic growth I think the key metric, though with the operating cost performed well they rose, 8% lagging behind the 9% traffic growth.
If you don't hedge savings offset higher staff and other costs to meet our Q impart to buoy delivery delays, we found ourselves gearing up for OE deliveries last summer, but being over crude overstaffed, and then finishing about 5 million passengers towards where we were originally going to be.
Yes.
If you take the half year.
Operating costs rose slightly less than traffic.
Balance sheet remains strong gross cash at the end of the half year was over $3 3 billion euros net cash was just 600 million searches in September and that is despite paying out a $900 million in capex $900 million in share buybacks and 200 million final dividend of 200 million final dividend in each one.
We own our entire Boeing 737 fleet Thats 580 aircraft, it's fully unencumbered and this I think materially widens reiners cost advantage over our competitors in Europe, almost all of whom know we're exposed to expensive finance leases financing cost and leasing cost as I said, we expect to complete 800 billion follow on buyback programs.
Sometime in mid 2025, when we finished that Ryan I would've returned almost $9 billion.
Including dividends to shareholders since 2028, since 2008, and we look for approximately 6% of our original issued share capital.
In terms of frequent growth. So at the end of October we had 172 game changers in our fleet we.
We now expect the remaining nine Q3 deliveries out deliveries due in September or in October November December would be delayed into Q4. So we're hopeful we'll get those in January February March is the Boeing strike cycles.
So pretty quickly.
However.
There's no doubt that there were going to now Miss something when we take those nine aircraft in Q4 that leaves us with 29 more aircraft to take for some of our 2025.
You had originally penciled in to deliver dose. This winter, we now think it's reasonable.
And we have no guidance on this but to today about half of those aircrafts. So we think we get about 15 of those 29 aircraft prior to the end of June in other words in time for summer.
25.
But it won't be linked into the winter of 2025, 2026, and accordingly that means I think it says now we begin to walk back. Our original are scheduled traffic originally for FY 'twenty five we would expect it to carry.
Carry 205 million passengers because of the Boeing today as we've had to walk up to $200 million. In fact, I think we can come in a shade just under 200 million in the full year.
Original target for 'twenty, FY, 'twenty, six or 215 million passengers, we now going to have to walk that back I think to about 210 with the possibility that it may have to get shaved more it might come back to 290 208 entirely dependent on whenever Boeing settled a strike and then can give us some reasonably accurate update.
Livery on aircraft.
We are working closely with Boeing I speak to Stephanie pulp on a weekly basis, both forget on Friday there is the.
Labour voting onto new.
As of today in Oklahoma results Tonight.
I'm impressed by the way to work the Gn Kelly Ortenberg are done there.
They are there on the ground and sea absolutely you can lift the phone you can talk to somebody that was something that wasn't there under the previous management.
She is booking a good try to get us deliveries in fact, even during the strike. They brought in management, we had two aircraft ready for delivery when the strike started they brought in extra management got those two aircraft out to us during October so they're doing everything they can and they have our full support.
I think though this is a positive generally for the industry.
We are going to be short aircraft ourselves for FY 'twenty five we're going to be more towards aircrafts in FY 'twenty six.
Looking forward it is fair.
This year, we were surprised by the price softness we've come off two years in summer 'twenty three and some are 24 of 20% price increases.
Post Covid recovery.
This year, we were a little bit surprised by the price softness we think its due to consumer spending tightness in Europe I'm sorry.
The impact of the Otas and the fact that we're 5 million passenger short on our original target growth, but if we're constrained in our deliveries next year, we know that the rest of the European industry is heavily constrained because of the Pratt Whitney.
Pairs and the Oems are struggling to increase production I would be medium term very optimistic on where pricing is going to go.
Because of these capacity constraints.
So some of the coverage that today in the U K O a bit of a negative Ryan there would be shingle is scaling back its growth ambitions, we will still get to our 300 million passengers by 2035 as long with Boeing to get the Max 10 certified but we're going to have to grow a little bit slower in FY 'twenty five FY 'twenty six once we get there.
The balance of the 29 outstanding aircrafts and that might be into summer of 2026, then we'll be back up to our target of 225 to 230 million passengers.
I think these constraints should be positive for pricing into somewhere 25 and 26.
As Youre aware the board is reviewing the airline ownership or control.
We confirm that over 49% of Ryanair issued share capital is held by EU Nationals in September.
We think it's appropriate to review the potential variation if either the ownership restrictions, which prohibits non EU nationals acquiring our ordinary shares are devoting restrictions, which is how you exercised control.
That process continues who consult with those far with about 60% of our shareholders. We think it will take another three or four months and we would hope that the board would hope to make a decision on that.
We are sensitive to vary the ownership and are the control.
In the.
The first half or the mid middle of 2025.
A key element languages outlook. So at this point in time and I would say this we have about 17% of the bookings in the system for Q3, we have only about 11% of the bookings in the system for Q4. So we have very little visibility. However, we're pretty sure at this stage, we're going to finish somewhere between about 198 to 200 million postures.
I think the midpoint at just over 199 up about 8% on the year. So no worse worsening of the current Boeing delivery todays unit Pos are performing well and we now expect full year unit cost to be broadly flat as our fuel hedging edge savings strong interest income and some modest aircraft delay compensation when Lars.
The offset ex fuel cost inflation.
Most notably our crew pay product and productivity increases higher handling and ATC cost and the cost of inefficiency. We suffered this year because of repeated Boeing 737 days.
Forward bookings into Q3 are strong and the decline in pricing appears to be moderating again, what does that mean, well if again if I go back to Q1 pricing was down 15% Q2 pricing is down 7%, you think pricing will be down by less than that but it will be slightly down.
So I think a small single digit decline the trend I think is favorable but then we get into Q4 and Q4, we will have a very challenging prior year comp because half of Easter was in last year's Q4, none of Easter is in this year's Q4.
But at this point in time Q3, the bookings are strong.
Pricing is.
The price declines are moderating, but we still have 30% of Q3's bookings to make and those would be the key dosing Christmas and new year bookings.
<unk> zero Q4 visibility on the quarter will benefit from last year's early Easter and I can make to the prior year Q4 comps.
I think it's too early this morning to provide any meaningful FY 'twenty five.
Guidance the final outcome will be subject to avoiding adverse development during the remaining five months of the year, especially with the rates of the outbreak of the conflict in Ukraine, and the middle East repeat at ATC short staffing and capacity restrictions under our further buoy.
Speaker Change: I hand over to you is there any comment or anything, but I think that highlights you'd like to promote their team's attention to on the balance sheet of the P&L.
Speaker Change: Okay. Thanks, Michael.
Speaker Change: Covered it fairly well I'll just reiterate please would have cost wins in the first half of the year.
Hedging that we locked in for the year is delivering good savings, but we're focusing across all of the other lines as well and that's enabled us now to improve the guidance on the full year unit costs broadly flat balance sheet rock solid as triple B plus investment grade raising over 580 aircraft unencumbered, which gives us a massive.
Outage over everybody else in another reason as to why the cost advantage and the cost gap between us and everyone else is widening because where we're financing ourselves through cash when everyone else is out there raising expensive leases and inexpensive debt distributions going well, we're about one third of the way through the 800 million buyback as Michael said.
Speaker Change: So that'll ultimately get us out.
Speaker Change: So mark off next year.
Speaker Change: <unk> locked in some modest savings on fuel hedging into next year, which is very important in this current very volatile oil market.
Speaker Change: We're in and then on Capex why we're still guiding $2 3 billion Capex for this year, having spent about $1 billion in the first half of the year. The reality is that some of that is now likely to slip into next year. When we have greater visibility on on where and when the aircraft are coming in from Boeing we will revisit that but it's a timing issue more so.
That than anything else and I don't really myself much more tough.
Yes.
Let's open it up to Q&A. Please.
Despite some of the questions around the wider management team here.
Speaker Change: As a reminder, if you'd like to ask a question today that staff left by one on your telephone keypad.
Our first question comes from James Hollins from BNP Paribas changed your line is open. Please go ahead.
James Hollins: Yes, hi, good morning.
One of them actually so feel free to spend at Chaucer as long as you would've done on this I think the <unk> situation I mean, it's clearly been discussed.
Speaker Change: Well certainly between me and Mike more investors.
James Hollins: Maybe any chance you could quantify what the situation was.
James Hollins: In Q1, and it seems to be from your comments seem very much Tor that lasted into summer should we start to think about I guess fiscal 'twenty six and the <unk>.
Easy comps, but just as much detail as you kind of think you didn't know it was probably a bigger impact than you had thought so just would love to hear your thoughts maybe <unk> zone as well thanks very much.
Speaker Change: So I'll give you an intro to ask Andy to comment on and maybe Jason Mcginnis as well.
James Hollins: I just missed Yogi impacted the OTH online travel agency dispute lost it started last November December now is undoubtedly took two or three two points off our load factors in the third and fourth quarters last year.
James Hollins: I think it gained hayden stay somewhere and by more than I allowed for I mean, the one reason it was a bit, especially because I didn't see any of these bookings going to our competitors. I mean, there was no notable cope with load factors are.
James Hollins: He has all of either.
James Hollins: You can get with the others, but I think we've seen a strong bump.
Speaker Change: In both bookings and load and for some of the tour operators. This year do we get to et cetera.
Speaker Change: I think some of that traffic did migrate away from the Otas and running out onto the kind of tour operating site.
Speaker Change: I would by the way however was that the right thing to do absolutely we would.
Speaker Change: We would fight with the Otas again tomorrow morning, and with anybody who tries to interpose themselves between us and our close mers, particularly when they buy interposing themselves. They are overcharging, our customers and giving a fake emails and fake payment details now im pleased to say the relationship with the.
Speaker Change: Over 90% of the Otas now excellent with only two standouts, who have not yet signed.
Speaker Change: Signed up to the approved hotelier deals in other words, two otas, who are still overstocked and their customers and thats booking dot com Oh.
Speaker Change: They're small in term in volume terms in Europe, and E Dreams and state.
Speaker Change: Other than that.
Speaker Change: He has signed up.
Speaker Change: So I think if I was you know.
Speaker Change: We're guessing gear, if we're looking at how much of our decline in pricing.
Speaker Change: If you take our pricing in Q1 Q2 were down 10%.
Speaker Change: I think it's reasonable to believe that.
Speaker Change: Maybe up to half of it is the otas and half of it is a pressure on consumer spending.
Speaker Change: I don't think you can get away from the pressure on consumer spending issue.
Speaker Change: We went from two years of toy with pricing going up 20%, 20%. We did expect to moderate this year I mean, I thought we'd be up between 5% to 10% that we were down 10%, sometimes it happens there's nothing wrong with the model.
Speaker Change: And I would always sacrifice short term fears.
Speaker Change: For market share growth and we have taken enormous quantities of market share from competitors across most of the major European markets. This year, mainly because they were constrained repairing.
Speaker Change: Whitney engines are.
Speaker Change: I've been in the case that they still haven't recovered their pre COVID-19 traffic volume, we were operating at 40% more than our pre COVID-19 traffic. So I would always sacrifice short term pricing on short term profitability.
Speaker Change: Our long term growth and longer term data.
Speaker Change: But I think the ots was more damaging than I had first allowed for.
Speaker Change: Good news going forward is the forward bookings into next summer with the Otas already very strong there pricing is well above our average pricing, but we would expect that because theyre, taking kind of their bookings during the holidays next year.
Speaker Change: We're booking they're taking bookings into the winter period.
Speaker Change: And we would have a much easier prior year comp next year.
Speaker Change: When we get to Q1 of next year, we will have both both halves of Easter would be in Q1, we should have a strong flow of forward bookings are coming from the.
Speaker Change: The otas.
Speaker Change: But ensuring that all of those customers are booking through those otas are now getting real ryanair prices the otas free to trade.
Speaker Change: Levi if a separate fee and that's fine.
Speaker Change: We're getting the customer email and the customer credit card details. So we can interact with each customer as well.
Speaker Change: So I think that's been a very successful outcome for us, but we've no doubt we've taken short term pain. This year looking forward.
Speaker Change: As of today, we are at about 2% stronger booked into summer. If you take the summer season of 2025 than we were this time last year now it's on a pretty tiny sliver of bookings.
Speaker Change: But to be two percentage points part of the ahead on a very small number is quite strong into next year.
Speaker Change: And we would have I think a weaker prior year comps by the time, we get to summer 2025 as well.
Speaker Change: And maybe Jason I, just want to add something to that.
Ed: Yes, it's Ed here.
Speaker Change: Difficulty Jamie sometimes is that when you're looking at comparisons has been when you look in prior years with Otas.
Speaker Change: It was impossible to identify who was doing what's coming through the pipes because they were they were using other intermediaries to scrape, but what we can see now is that.
Speaker Change: Mike has pointed out there some are some of our booking their otas.
Speaker Change: Our net margin is set here they do.
Speaker Change: Operate in different ways, but we can definitely see the holiday one package holidays are they book further ahead on that higher fares.
Speaker Change: And.
Speaker Change: If you look at that as compared to last year was that we werent getting those bookings that we were obviously, Jason goes to gas load factor, but the good thing as well is that.
Speaker Change:
Speaker Change: It's not just a question of switching on the pipe here either because some are better.
While others in maximizing what's coming through there like the ones that are more tech focused.
Speaker Change: And I have got up to speed much more quickly than others haven't but theres no doubt that we can see.
Speaker Change: The forward bookings.
Speaker Change: The summer once their once their bookings that we didn't get in.
Speaker Change: January particularly of last year, because when this happened.
Speaker Change: Broadly in mid to late November last year, Youre pretty much sold into December. So it was really those summer bookings in January and then the effect of obviously the other factors sort of macro issues or things like interest rates, and then that consumer sentiments that fed into it.
Speaker Change: I echo as well, but Michael said it there.
Speaker Change: It's a hard decision was to do this was the right thing to do.
Speaker Change: We can see that reflect this.
Speaker Change: In cluster issues like some of the hardest customer issues we had.
Speaker Change: When you get to the sort of volumes that we have now people showing up and.
Speaker Change: Being charged checking fees because the otas are just sold on <unk> and <unk>.
Speaker Change: I couldn't care less at that stage about like what problems were visited upon consumers at airports so broadly.
Speaker Change: It was absolutely the right thing to do.
Speaker Change:
Speaker Change: Better than others.
Speaker Change: A little bit to go with some of the Otas and get in Spooling back up to where they believe they were.
Speaker Change: <unk> with last year.
Speaker Change: Jason.
Jason: Yes, I don't disagree with you.
Speaker Change: But if I take Q1 and Q2, so Q1, the fares were down 15% and I think.
Speaker Change: There is a third of that was probably the first half of Easter moving into the prior year Q4, So if you strip back east.
Speaker Change: I would be doing back of the envelope here I think Q1 pricing like for like is down somewhere between 7% and 10% in Q2 down 7% Q3 was down is down by a figure between north and 5%.
Speaker Change: Do you think that Otas and how much is just the economic the consumer spending under pressure and I know what the kit so.
Speaker Change: Yes, it's hard for me yes.
Speaker Change: Disagree, but I think it's about half and half the interest rates inflation environments. I think last Christmas into January the consumer was certainly weaker I could see us like I see it in the volumes, particularly as we said previously across leisure and canaries, but lots of the markets continue to book very well like central and Eastern Europe was strong throughout the whole periods.
Speaker Change: Load factor is true to some are very strong.
Speaker Change: I'm very happy to have the summer is finishing out was particularly we've had a very strong October midterm, hopefully that continues into December but a little bit too early to tell in terms of Christmas then I agree like somewhere 25, sorry, Gary today, so far but I'm very happy with how it's selling very happy with how we're selling so far all of the market selling selling well.
Speaker Change: I think that is.
Speaker Change: An indication in terms of the capacity environment as well I think people are booking earlier thunder happening on the leisure and <unk>.
Speaker Change: Okay. Thanks.
Speaker Change: James next question please.
James Hollins: The next question comes from Harry Gowers from Jpmorgan. Please go ahead. Your line is open.
Speaker Change: Alright.
Harry Gowers: Yes, good morning, everyone Ive got two questions if I can probably both for mail.
Harry Gowers: Just on the ex fuel cost. So I mean, I think we should start to annualize some of the pay increases picture at the back end of last year. So there may be a little bit more color on what youre expecting for ex fuel cost per Pax, specifically, either windsor or on a full year basis, and then related to the first one on the delay compensation received in the first half.
Speaker Change: Are you able to quantify the title and will that continue to be a bit of a tailwind maybe flex fuel cost over the next 12 months so sorry.
Speaker Change: Okay, Harry I'll start with the second one first where we're not going to quantify the related compensation is modest as we call outs.
Speaker Change: In the press release in the first half of the year, it's confidence between ourselves and Boeing and falls well short of.
Speaker Change: Putting us back in the money for the $5 million plus passengers that we lost.
Harry Gowers: It would be more in H two do you like the orders yes.
Speaker Change: Will depend very much on our many aircrafts from gas and when we get some but again it will be relatively modest in the overall scale of things.
Speaker Change: On the unit cost themselves total passes on a very good job.
Speaker Change: Absence, the Boeing compensation, we've seen some improvements on older ex fuel cost line.
Speaker Change: In the second quarter of the year, we would hope that continue into the third and fourth which is why we're guiding total unit costs broadly flat, rather down marginally down which we had pre.
Speaker Change: Previously.
Speaker Change: We would hope that next year with the slower growth we won't be over accrued as was the case. This year, we had enough crews for about 20 more aircrafts that hopefully won't be the case.
Speaker Change: Next year and as you rightly said as we get out into kind of the first quarter calendar quarter of next year, we will start to annualize some of that productivity pay and that that I called them true, but it's too early to put numbers on where our unit costs are going to be next year, we haven't done the budgets yes.
Speaker Change: I think we've done a good performance this year I'm pleased that we're guiding.
Speaker Change: Broadly flash and locking in with the 75% fuel hedging that we have modest year on year fuel savings.
Speaker Change: Okay.
Speaker Change: Thanks, Larry next question please.
Speaker Change: The next question is from Stephen Furlong Davy.
Speaker Change: Understood.
Stephen: Stephen Hi.
Stephen: Hi, Michael.
Stephen: I guess two for me I'm, just where are you just looking at the allocation of growth.
Stephen: And I think you called out some scrapping of aviation taxes, Sweden, Hungary, various regional airports. So just might talk about that where you see that going.
Speaker Change: And.
Speaker Change: Yeah.
Speaker Change: Maybe I'll start and then I'll come back for another one.
Speaker Change: Okay.
Speaker Change: Again, I forget who joined it look I mean, we are tonight on aircrafts. So we're doing a lot more fun.
Speaker Change: We're taking aircraft away from airports and our countries who are raising taxes the tupi.
Speaker Change: Carl I would say would be the French budget now we're small in France, even though we're the number three airline we're taking capacity away from France, we're reducing capacity in Germany, where the government hasn't got a clue, they're not alone raising at aviation tax, but also the ATC fees and security charges and even Lufthansa group are now reducing flight significant.
Speaker Change: They produced about a thousand euro being slightly in Hamburg.
Speaker Change: Medium term optimistic on Germany, I think they'll eventually realize that either this goldman's hasn't gone through our this goldman is going to change its policy and start lowering.
Speaker Change: Air travel Air travel costs in Germany, and then we had the UK project last week, where they increased apd.
Speaker Change: And they are new Labour government committed to grow it's got elected on it.
Speaker Change: I have followed me go to the FERC to do with the tax.
Speaker Change: Increased taxes on air travel was on and off an island on the periphery of Europe. So we again I think this plays into the capacity constraint story for US next year, if we're only going to do.
Speaker Change: <unk> be able to deliver between 205 to 210 million passengers, they're going to be a lot more churn and I think youll see us moving some add capacity out of Germany, France, and the U K next year, we're not able to grow in Dublin because of the traffic comp.
Speaker Change: And we will be redeploying that are brought back capacity into countries, where scrapping taxes, Hungary, Sweden, who have scrap their aviation taxes entirely.
Speaker Change: I think a sign of what's to come the home of Flake gaming is now it's not being aviation tax they've worked out that that's not the way to grow their economy and easily we're having significant success for a number of the bigger regions in Asia the ratio Calabria.
Speaker Change: Julia and we hopefully approved so.
Speaker Change: <unk> Airport is have to scrap the 650 municipal attacks.
Speaker Change: We think there's a reasonable prospect that more accounted regions was scrapped at Alitalia pilot pension tax and so we're redeploying.
Speaker Change: Earning aircrafts, we will get probably <unk> 25 aircraft growth for next year, but our growth. If we go from 210, but slow down to about 5% so that would be more start.
Speaker Change: Again.
Speaker Change: A lot of that is being where we're having some very interesting discussions with our some of our airports, where we're saying look you are at the bottom of the list of our kind of either you or one of our higher cost airports or Europe.
Speaker Change: Airports are getting very I think realizing that thereabouts news aircrafts on capacity.
Speaker Change: Making them with nobody else in town, but nobody is coming over the hill because of capacity constraints in Europe, and the cost of getting a lot more aggressive.
Speaker Change: So I think youll see us we allocated a lot of our a significant proportion of our aircraft capacity next year, because those states and those airports, who are lowering taxes at lowering fees to incentivize growth and I think that's why the traffic happened in government is so damaging.
Speaker Change: We've just opened a second runway and it takes a doubling capacity just 60 million passengers, but we have a potent transport Minister Green Transport Ministry, We thankfully is not running for election, because you probably wouldnt get re-elected anyway.
Speaker Change: We would hope the election is going to be called next week that the new government to FERC and the new government would do would be scrap attacks.
Speaker Change: We had a very I think good here in the high court on Friday.
Speaker Change: Just going to give a ruling today at two o'clock and we're pretty confident that he'd rule.
Speaker Change: There'll be a stay on any.
Speaker Change: On the IAA <unk> ability to limit loss next year, while pending an appeal to the Europe and all of our D can advice and it's pretty black and white as that the Dublin Airport traffic happens country to EU law.
Speaker Change: It would be scrapped.
Speaker Change: By the EU courts.
Speaker Change: <unk>.
Speaker Change: I don't know, whether you want to add to that Andy and maybe Julius come in on the Dublin.
Speaker Change: Yes, Michael I think you've covered most of the geographies there except that I would say to us.
Speaker Change: Post Covid, we would have probably expected.
Speaker Change: Airports in terms of traffic recovery to move earlier.
Speaker Change: No doubt it has started in places like Italy.
Speaker Change: Taxes coming out or you look at just one example of Sweden whereby.
Speaker Change: SaaS or.
Speaker Change: Are much smaller than they were at post COVID-19 or pre Covid Norwegian largely.
Speaker Change: Back in Norway, Sweden, due for dropping and then they figure out that lowered the taxes, we put in 30% more based aircraft and I think that's really going to start to play out.
Across Europe, where when these airports now realize theres nobody else are coming.
Speaker Change: Coming so I think the sort of the cracks are beginning to come.
Speaker Change: We see one other area where.
Speaker Change: We put in a lot of capacity is way out of places like Morocco, where we've got.
Speaker Change: The 14 or 15 based aircraft down there at close to 10 million passengers. So I think theres lots more I think there's lots more to come but I think you've covered all the geographies Debra.
Speaker Change: I think one of the points that we're looking at the U K market next year like we expect to take our traffic down for about 55 million to about 50 million passengers were not control groups.
Speaker Change: Do we have enormous capacity in the U K, but we're going to dream of frequencies and I think you're going to see is across a lot about bigger market Scream frequencies next year, which that capacity to those countries, who are scrapping aviation taxes are lowering access cough and airports, who are incentivizing growth and I think again I would be.
Speaker Change: The reason I am optimistic on pricing next year apart from the fact that we will have a pretty weak prior year comp is that we will be constraining frequencies, we will not be closing routes. We would not create vacuums that I don't think we have any company competitors in Europe anyway, but we're certainly not going to be inviting anybody else into markets, where we are.
Speaker Change: Currently operating but.
Speaker Change: <unk> capacity on a lot of markets out of Ireland because of the traffic happened in the U K because of these insane right and Apd.
Speaker Change: I think will be very good for our pricing next year and again, if you come back Anita its orange point, if you look at the cost discipline in this business.
Speaker Change: Discipline is unmatched by any other European airline if we get any bump in pricing next year, you're going to see an awful lot of that flow straight to the bottom line.
Speaker Change: Judy if you want to give us anything on Matt David dumped in cap.
Judy: Thanks, Michael maybe just to say that it is accepted by all parties that there is a serious question of EU law to be answered in relation to the top.
Speaker Change: This is.
Speaker Change: This is reflected by the fact that the court case on Friday. It was argued not only by Ryanair, but also by our language.
Speaker Change: Importantly, and association of American Airlines, who are concerned about the risk of losing some of their slots in Dublin, So it's hard to be definitive.
Speaker Change: Hard to predict the outcome will be.
Speaker Change: Court process, but we are fairly optimistic that the court will see strengths in our arguments and.
Speaker Change: And grant the state that we requested which would result in.
Speaker Change: <unk> being possible in Dublin next summer.
Speaker Change: Okay. Thanks, guys. Thanks, Steven just a second.
Speaker Change: I'll leave it at Austria.
Speaker Change: Thanks, Michael Okay next question please.
Speaker Change: Thanks, David next question.
Speaker Change: Next question comes from Jamie <unk> from Deutsche Bank, Jim. Your line is open. Please go ahead Jamie.
Speaker Change: Okay.
Speaker Change: Jamie Your line is open please ask your question.
Speaker Change: Jamie go ahead.
Speaker Change: Okay, let's move on.
Speaker Change: The bulk of that will come back to your question comes from Muni, because you're only from bank of America. When you beat your line is open. Please go ahead.
Speaker Change: Right.
Muni: Good morning, it's many of US from Bank of America. So just wanted to follow up on the earlier question around Otas and you said that 90 over 90% have been converted what exactly does that mean like are they all kind of the technology is it fully kind of integrated at this point and and then secondly.
Speaker Change: Are you aware of our discussions with the two remaining ones did you do you think you would be able to get them on board as well and then a question for me I'll add on cash return and buybacks in the video you mentioned that there could be more.
Speaker Change: How have you thought about the amount of especially our buybacks of 700 to 800 that you've announced this yet.
Speaker Change: And kind of any framework for thinking of the amount.
Speaker Change: Into next year. Thank you.
Speaker Change: Thanks for that but maybe I'll take the first and he will give you. The second so on the Otas. We have if you take the range of Otas, who were making bookings on our system. Prior to last November we've now signed up over 90% of them at this stage deal too.
Speaker Change: Sure.
Speaker Change: Remaining otas, who have not signed up to our deal towards still overcharging or inflating, our airfares that overcharge consumers and that is booking dot com, but they're very small by volume in Europe E. Dreams are figure five volume in Europe, particularly in Spain, and we have multiple court cases ongoing with both.
Speaker Change: We've won.
Speaker Change: With booking in the states in Delaware.
Speaker Change: One numerous cases against the dreams in.
Speaker Change: Europe outside of Spain, We have lost a couple of destination actions in Spain.
Speaker Change: Although generally they've been ex parte deformation actions, where we havent dependent werent able to make our case and we would be appealing those measures I expect I think it's inevitable that both booking Andy dreams will eventually sign up to our approved LTA agreements, because I think it'd be very difficult.
Speaker Change: Usually the transparency of the web.
Speaker Change: To be able to be overcharging your customers. While your competitor Otas are selling them directly Ryanair Ryanair is lower low fares with no kind of hidden.
Speaker Change: <unk> are no inflation.
Speaker Change: But I.
Speaker Change: I think the critical thing is so far we protected over 90% of our Ot of OTI customers and we expect that figure will rise towards 100% of what period of time, I don't really know them.
Speaker Change: What I think is much faster on the otas on that unless Jason do you want to comment on it and then.
Speaker Change: Neil you answer the second question, yes.
Speaker Change: Yes, Im sorry, Michael I'll, just add there.
Speaker Change: Uh huh.
Speaker Change: Once youre, having said like without naming the specific well those that are more <unk>.
Speaker Change: <unk> focused companies.
Speaker Change: Are much better at maximizing the Apis that we've put into them already because they've got the tech resources at the other side and some art.
Speaker Change: And they are they are still coming up to speed, particularly because as part of vota agreements. They can't put out extra charges on things like ancillary so they've got to be actually they've got to be durable and ensure that they are reflecting the transparency in pricing. So there is there some way to go on some of them.
Speaker Change: They maximize it but those that are selling out summer holidays for next year in terms of packages, where it's a little bit more complex on their side, where they got hotels and all of that is part of it there generally.
Speaker Change: Getting back up to where they would've been so they're at different paces.
Speaker Change: I'm not going to give you color on how many.
Speaker Change: Like what ones are behind the curve, it's just about their tech resources on the other side.
Speaker Change: Okay, I, just before I hand over on the share buyback point minivan I would draw your attention to two things one the Boeing delivery delays. This year meant we had with less capex more spare cash our first instinct was to return additional cash to do that spare cash to shareholders I would highlight however, as we've done in the results we are too large.
Speaker Change: Bond repayments coming up in September 25, $850 million in May 26 owned $1 2 billion, we are determined to pay down that debt.
Speaker Change: Dave.
Speaker Change: And that will be the board first priority, while maintaining our dividend policy going forward.
Speaker Change: I will not share buybacks.
Speaker Change: Yes.
Speaker Change: And kind of read it.
Speaker Change: Where I was going to go.
Speaker Change: This year was driven by a slower.
Speaker Change: Lower capex, but also we didn't have any big bonds.
Speaker Change: Payments, we got an opportunity just given where the share price went.
Speaker Change: In the first quarter sorry in the July August period to lean into the 700 million buyback, we finished out earlier than anticipated as an 800 with the slowing.
Speaker Change: Capex.
Speaker Change: And the delays in Boeing seems about the right number that gets us that with the next summer, but we're very focused that we do have that 850 million bonds in September 25, as the $1 2 billion bonds.
Speaker Change: Thus, we will continue to pay back 25% of prior year.
Speaker Change: We're seeing that said, we've already announced about a 240 million.
Speaker Change: Dividend in February there'll be another $240 million or thereabouts in September of next year, but ultimately.
Speaker Change: But the profitability in the business and the Capex opportunity the dash repayments will dictate how much spare cash is available for the board to return, but I think the cadence that's.
Speaker Change: Thats finished the 800 million buyback first and then we look at what comes after that Minerva.
Speaker Change: Thank you.
Speaker Change: Next question please.
Minerva: The next question comes from Dudley shortly from Goodbody suddenly your line is a complete go ahead.
Dudley Goodbody: Thank you very much and morning too.
Dudley: Two questions if I may 1st of all.
Dudley shortly: Can you just update us on the latest you've heard on the certification of the Max seven and then the follow on certification of the Max 10, and then the second question is one of your favorite topics, Michael Riches Hec disruption.
Dudley shortly: Particularly during the summer, especially for the first wave.
Dudley shortly: Can anything be John about this I'm kind of doing what route charges going up over time.
Speaker Change: Thank you.
Speaker Change: Great, Okay, and they just didn't.
Speaker Change: Speed is definitely pulp on Friday afternoon, they remain confident that theyre still working away on certification. They still expect certification of the Max seven in the first half of FY 'twenty five and then at the Max 10 certification will follow reasonably quickly thereafter in about it sometime in the mid <unk> mid second half of 2025.
Speaker Change: And I think we should take them at their word.
Speaker Change: We've had some reasonably positive feedback with.
Speaker Change: <unk>, who have said that they are reasonably impressed by the Max 10, and don't see any reason why that certification won't take place.
Speaker Change: Aircraft there.
Speaker Change: But it's driven by getting the Max 700 certified first and I think what's important though is that work is continues even while the strike is ongoing.
Speaker Change: The agency disruptions of finished samples this year I think what really depressing about ATC is so much of this is fixable.
Speaker Change: All of that you've got your controls who can figure showed slight capacity flights in Europe. This summer we're at 98% of their pre COVID-19 volumes. So it's not that they you know the skies are black or they're dealing with huge growth there actually dealing with fewer face that they had in 2019.
Speaker Change: But they're short stopped and in many cases, they're short staffed because people simply won't come to work on Saturdays and Sundays.
Speaker Change: As in the case of the French they've done this deal with the French unions, where they can report to work three hours late.
Speaker Change: Now you know if you're an accountant reporting to work three hours late doesn't make that much difference, but if you're a pilot or you're an air traffic controller in your Q1 at four am in the morning, and you reported 70 I am in the morning, because you can then the whole first where you get to late.
Speaker Change: So there are two things that can be done and we're pushing hard with the EU Commission one.
Speaker Change: Hector overflights during national ATC strikes the Spanish the Italians and the Greeks already do this they use minimum service to protect 100% of overflights, but the French use minimum service legislation to protect about 80% of their domestic flights and only 20% of all flight, so and because of the geographical positioning of France, everybody else gets route to go.
Speaker Change: Ooh simpler nature would be one.
Speaker Change: Protect overflights, Julian National ATC strikes and to.
Speaker Change: We require a commitment that each of the nsp's, particularly the French the Germans and to a lesser extent the Spanish will be fully staffed for the first wave of flights every morning. There is no point in having a labor deals that allows some air traffic controllers.
Speaker Change: We're talking one or two air traffic controller short on the first wave of sites in France could take about 20% of its capacity out we're talking tiny numbers a pizza here, but.
Speaker Change: That are being grossly mismanaged.
Speaker Change:
Speaker Change: I think if the new EU Commission I think we're optimistic.
Speaker Change: Lane has put competitiveness at the center of the new five year mandate for the EU Commission and if you really want to do something about competitiveness Stanford fixing Europe chronic ATC.
Speaker Change: Services.
Speaker Change: And those two supermajors would eliminate about 90% of ATC delays.
Speaker Change: Next question please.
Speaker Change: The next question comes from Alex Irving from Bernstein.
Speaker Change: Please go ahead Alex.
Alex Irving: Hi, Good morning, gentlemen couple from me. Please first of all so opened 10, you know what you say about the Mezz some billing, but what are you accruing for the rest of unit cost inflation. If this gets pushed out.
Speaker Change: Sales to passenger growth has been low in this quarter in the last quarter, what's driving this and what initiatives are you currently wasn't done in this particular space.
Speaker Change: Can you just repeat the second half I you broke up there.
Speaker Change: Something in the second quarter.
Speaker Change: Ancillary sales for passenger in low growth last holiday was what are we working on thinking about the growth.
Speaker Change: Okay.
Speaker Change: The second one is a new Max can't look we're very optimistic about the Max 10.
Speaker Change: Wouldn't change wouldn't decimal points of our growth trajectory to 300 million by mid 2000, <unk>. The big issue for US is where do our first 2017 deliveries of Max changing that in the first half of 'twenty.
Speaker Change: 27, so we have been there for some are 27 as long as the Max 10 are certified in the second half of 2025, and Boeing can increase their production and their monthly production in line with their projections then there should be no delays to those deliveries.
Speaker Change: Do we see those aircraft will bring us compared to the original our 737 Anz's, we're getting 20% more seats burning 20% less fuel I mean their transformation of our operating costs.
Speaker Change: We don't foresee any significant staff impact it will make our if you go back to slide three of our presentation slide four of our presentation of unit cost line. It will meaningfully widen our soft cost leadership airports and handling cost leadership everything with the sole exception of route charges, the aircrafts are heavier and golf.
Speaker Change: <unk> leadership over every other airline in Europe.
Speaker Change: We will not obviously recruit additional pilots if theres some additional delay to those deliveries in the first half of 'twenty two.
Speaker Change: 27, but I think you've seen us.
Speaker Change: Which did happen to us in the summer of 2024, So I don't see any significant bump in staff costs arising from we will have a fifth cabin crew onboard, but all of our pay deals at the moment with kindness cabin crew are done whether you're a.
Speaker Change: They factor all variants of the 730 Sevens.
Speaker Change: We will only be taken 17 aircraft in.
Speaker Change: If there was if somebody was silly enough to say well, we don't we won't fly. It you said that the Max 10, unless we get X Y Z, We say fine, we simply move which would have a different geography, where we'd have no difficulty.
Speaker Change: Getting our crewing to Max hence, so I think there's nothing but upside for us in the Max and the productivity of the aircrafts are extraordinary.
Speaker Change: Activity by the way, even though at the end of the of the game changers I've been extraordinary we're getting 4% more seats. They are burdening, 16% less fuel.
Speaker Change: These are transformational in our.
Speaker Change: Business, we own the aircraft and I look across at some of our competitors, who are frankly doing sale leasebacks desperately doing cooking the books trying to take prompt some sale lease back through the P&L, we have none of that.
Speaker Change: We have no long term debt or leasing costs on our balance sheet. So.
Speaker Change: I can't wait for the Max tens I think they are going to be transformational for our colleagues and for our profitability from summer of 2027 onwards.
Speaker Change: I'd, just say I'm not quite sure on the ancillary sales ancillary sales were up 10% traffic is up 9%. So we are getting you know as we said ancillary continues to bump a little bit ahead of that.
Speaker Change: Profit growth.
Speaker Change: But then Neil and maybe I know, whether you want to add something on salaries there.
Speaker Change: Yes, I'm happy to drop my pleasure you said it was a pretty good performance in the first half of the year with the 10%.
Speaker Change: Increase in revenue.
Speaker Change: There's probably three big areas, Alex as you are well aware of where we make it out of the money to reserve seating, that's going well, it's up year on year, and we would hope that there is more we can do on optimizing that and then the pricing around that onboard sales have improved year on year on our new order to cease initiative, which we were trialing in the early <unk>.
Speaker Change: We are now rolled out across the network is going very very well and with people can't get their order in early onboard so it'd be hopeful more to come from that the one area that probably disappointed me a little bit. This year was the priority boarding I think some of that might have been down to the fact that we've been under pressure with air traffic control this year to try.
Speaker Change: And not take on slots our priority is to close the door get people onto the aircraft in Florida. So there's maybe been a little bit of gaming from some of the customers.
Speaker Change: Take the bags on board, but were addressing that we're working through with some upside there. So I'd say a little bit more to go on the priority. We've been quite clear is all going to be any major new initiatives coming but there's lots to be done with the products that we have just just enhancing though I'm pleased with what's happening onboard having underperformed for the past couple.
Speaker Change: The years onboard sales has turned the corner this year and I think the order to cease plenty more to go on that front and then working with labs will continue to try and work on improving the.
Speaker Change: Seizing I'm working with my colleagues in the operations and the airports, we will work on improving the priority boarding.
James Hollins: Alright, thank you.
James Hollins: <unk> been on ancillary.
Speaker Change: No I mean, just it's really sorry, it's Eddie here, it's really just an.
Speaker Change: The interplay or whatever between dose those core products in terms of optimizing revenue between the trade offs between behaviors on.
Speaker Change: Bags in priority boarding and bundles.
Speaker Change: And issues like that and it just will never get to the end of it.
Speaker Change: Alex.
Speaker Change: <unk> same as them.
Speaker Change: As the models gets even more as the mothers will get more sophisticated in time.
Speaker Change: Okay.
Speaker Change: Got it.
Speaker Change: One thought there.
Speaker Change: Ask a year where the.
Speaker Change: Average fares are they the average fare was down 10% per passenger.
Speaker Change: In that.
Speaker Change: How long that is due to consumer spending being under pressure I think it's very impressive that ancillary revenues were up 10% on a 9% traffic growth.
Speaker Change: We are still able to mine the ancillary revenue line and to encourage our converts.
Speaker Change: Convert to the convenience of priority boarding and reserve seating et cetera, even in a period of time when consumer spending pressure.
Speaker Change: Next question please.
Speaker Change: The next question comes from Jarrod Castle from UBS. Your line is open. Please go ahead sorry.
Jarrod Castle: Hi, Good morning, everyone, you hedged 75% of your feel for 2026.
Speaker Change: Look back a year ago, you'd only hedged 53%.
Speaker Change: That's faithful March 25.
Speaker Change: Well I view I guess increase the hedging that is suggesting anything in terms of the direction you see oil going to in the next year.
Speaker Change: Sure.
Speaker Change: And then also.
Speaker Change: You've kind of highlighted a lot about.
Speaker Change: Shoppers control rules and your engagement with stakeholders.
Speaker Change: Stakeholders I'm not asking you know kind of where those heads, but can you kind of just give us sort of color in terms of.
Speaker Change: Potential outcomes that you'd like to achieve.
Speaker Change: Okay, I'll ask maybe Julia said due to the ownership and control.
Speaker Change: Especially on hedging Jarrod.
Speaker Change: We're always there.
Speaker Change: Waiting to pounce, where do we see weakness in oil prices.
Speaker Change: Although our current view of where we can lock away a cost saving I think we're always keen to do so.
Speaker Change: We are undoubtedly in a period, where the world is more volatile fuel prices.
Speaker Change: He can go where under $70 a barrel that today, they've opened up over $75 a barrel. So what we're trying to do it.
Speaker Change: Some cost certainty going forward, we're hedged this year at $79 a barrel. We're now 75% hedged at 70 $877 a barrel I don't think we would go over a medium term are higher than that.
Speaker Change: I think there's a real risk that they you know.
Speaker Change: Some of the market analysts the beginning is broken out, but maybe $60 a barrel, we could find ourselves been exposed compared to our own hedge competitors oil price could go lower but then we pick that up with our 2025% on hedged.
Speaker Change: But I like the feel of where we are at the moment.
Speaker Change: Given the situation in the middle East and Ukraine, as we move into the winter. There is always the risk that oil prices will go higher $75 million about we're not trying to beat the market. We know fucking nothing more than anybody else does about oil prices.
Speaker Change: But we have a balance sheet that allows us to hedge out.
Speaker Change: Forward interplay inkjet and we are always if you go back two years, we were hedged at $89 a barrel.
Speaker Change: Youre at $79 a barrel next year, we're at 77 to $77 a barrel.
Speaker Change: He saw an opportunity there say if oil prices fell below $60, a barrel and we could meaningfully go in and hedge another 10, 15% and bring it down towards low seventies per barrel, we might move but I'd be I think it's unlikely that we're still.
Speaker Change: Burns or score scarred by the memory of Covid, where we did to COVID-19, we used to have a rolling 90% hedge policy I don't think we'll ever again hedge up to 90% or so.
Speaker Change: <unk> opportunity there, but I like the fact that we have very stable unit costs. We are a we're taking more game changers that gives us an operating cost kind of efficiency and we've hedged 75% of our few of them this year at <unk>.
Speaker Change: Dollars a share less than the current year. So I like what we're able to do to secure all kind of stable cost next year, but I think given weak prior year comps, there's a reasonable risk to the upside in terms of pricing, particularly with even our own capacity constrained next year.
Speaker Change: I'm curious maybe its okay give people a quick briefing on the oil and see consultations and where we think it might go.
Speaker Change: Yeah. Thanks, Michael so over the last few weeks, we spoke to shareholders, who represented approximately 60% of issued share capital.
Speaker Change: Those shareholders currently holds both through the ordinaries and.
Speaker Change: And through the ADR.
Speaker Change: We received a lot of interest and feedback and generally foundries exercise very useful we still have quite a few meetings in the diary for the coming weeks and at the same time, we are in discussions with our regulators. So thats international regulators in Ireland, Poland, and Malta and also the European Commission.
Speaker Change: I wouldn't want to talk more about.
Speaker Change: Potential outcomes.
Speaker Change: I don't think it would be appropriate to give more color given that we haven't yet spoken to everyone. We have an open invitation.
Speaker Change: Out on our website for shareholders to express their views and we have received interesting feedback through that channel also so I don't think it would be appropriate to those that we haven't spoken to yet to know.
Speaker Change: I'll go and give more color, but it has been useful and we will give an update as soon as we can.
Speaker Change: Okay. Thanks, and I think that's an important point to be made here Jack.
Speaker Change: Jared there was some concern at the start of this particularly with the ADR holders. The ordinary did the ordinaries, we're trading at a discount of 29% to the ADR. So when we started consultation on the 11th of September over the past six or eight weeks that ordinary discount has narrowed.
Speaker Change: It's currently as of last Friday, It was at 18% discount on the ordinaries compared to the ADR.
Speaker Change: <unk> has been entirely due to that you could get the prices of the ordinaries rising by 11% over that seven week period in fact, the price with the ADR has increased by 1% so.
Speaker Change: I think there was a fear among ADR holders that you know if we move here or this would add that what they see as a premium on the ADR, but we incorporated.
Speaker Change: Fair discount on the ordinaries would be arbitrage the way by the ADR price falling in fact.
Speaker Change: As that has been borne out over the last six or seven weeks, we think what will happen is that.
Speaker Change: And it comes on the Ordinaries will arbitrage away as the ordinaries right will rise up to where the ADR.
Speaker Change: Right and I think that's the key.
Speaker Change: Key point, but yeah as Judy has to say we have an open mind on this the board will consider it.
Speaker Change: And the alternatives are we could remove the ownership and control restrictions, we could remove just the ownership restrictions, but keep the voting control restrictions or we could keep the ownership restrictions and removed voting restrictions. So.
Speaker Change: And it will not all over the board will take account of the use of the inputs of shareholders, but we also have to liaise with our regulators as well as the European and National regulators yourself.
Speaker Change: But bear in mind that we price Neal.
Speaker Change: And we think that process is there a timeframe made we're probably mid next year before we come to some kind of conclusion I think is that a reasonable timeframe.
Speaker Change: That's the best estimate at the moment, but no fixed timeframe.
Speaker Change: Okay. Thanks.
Speaker Change: Thanks, Julien Thanks, Scott next question please.
Speaker Change: The next question comes from Seth <unk> from Citi. Your line is open. Please go ahead.
Seth: Thanks, Michael I've got two questions I've got two questions here first on the ancillary is on the video.
Seth: It had mentioned about some of the passengers ordering directly by up so in terms of the spend all doesn't actually come pass it.
Speaker Change: Jim is all customers ordering but other than to spend more of SSD.
Speaker Change: On both spend any comparison on that like what does the spin box would look like and then the second one was around the fuel cost as we go into next year or in the SaaS commanded kicks in like DVR like any visibility around how much of these SaaS procurement is done not what price. So that again it gives us good visibility into.
Speaker Change: So fuel cost into the next few years. Thank you.
Speaker Change: Thanks.
Speaker Change: On the order to see what we're seeing is a greater propensity.
Speaker Change: <unk> of the resets, but that there is increased propensity of people.
Speaker Change: Making the orders while they are sitting there waiting for the aircraft. The board I think it will boost the spend per Pax on the inside sales, but inside sales are a pretty small part of our total ancillary volume.
Speaker Change: As Eddie said, the large volume large and moving items are the priority boarding reserved seating.
Speaker Change: We think it certainly borne out in the first couple of weeks of trials. There is a notable double digit increasing the.
Speaker Change: Percentage of people, who will shop onboard when they can do so using.
Speaker Change: In advance usually the all seat functionality and we think that will continue.
Speaker Change: And I'm here with Tom was filed or our direct refueled sustainability. Thomas do you want take the second part and then I might jump back and ask Eddie or Neil to comment further on the or to see yeah. So cities just on the SaaS side. We're currently negotiating the prices with our field suppliers ahead of the mandate next year. So it's very early to give an exact number.
Speaker Change: But we will we have some contracts rolling off at suppliers in January that we're negotiating at the moment.
Speaker Change: Looking at somewhere premium soft premiums of between two and four times, depending on the region, but we're nowhere near finalized on it yet.
Speaker Change: Thank you Thomas.
Speaker Change: Eddie.
Speaker Change: Yes.
Speaker Change: Or did you see him.
Speaker Change: As you say, it's just it has just started just two points I'd make is that one is from our labs for perspective here is a low cost solution to them by Bluetooth that has changed behaviors onboard and it just shows the innovation that we're getting from the lab side without any servers on the back of the Arab light or any certification or anything like that.
Speaker Change: Gritting slick solution and then the second thing I'd say and I'm here with <unk> and you get this anecdote feedback to the crew that people are more inclined to buy more when they're ordering on the app rather than asking directly so sometimes people don't ask for like <unk> or <unk>.
Speaker Change: <unk> would have no difficulty doing that when they are when they're doing it through the app. So it's a behavioral change and so people it looks like PE like people actually will need more data on it but it does look like if they actually buy more per passenger.
Speaker Change: Yes, I would agree with that Eddie there I think one of the other benefits of houses that people, who may have traditionally weighted for the second serve as a deterrent surface are now willing to put in that round them order between service and you're getting the incremental sales that you wouldn't have.
Speaker Change: Before.
Speaker Change: Performing well also.
Speaker Change: Yeah, I can give you that.
Speaker Change: Anecdotally when I came back with the Kid from Rome. The school midterm last week. My wife now has me ordering this stuff too paranoid if you know where we won't have.
Speaker Change: Anemia, or Obama cheese, or something onboard so we know order to app.
Speaker Change: Only downside is sitting in row for people.
Speaker Change: People around me say, who you are they write down but myself first so as he says you got special servicer on the insight that no no. It's the oldest of the season you can go into.
Speaker Change: Okay, I think it will significantly boost the conversion of people onboard, but it won't be dramatic at its impact on our overall ancillary revenues wont be dramatic because inside sales is a reasonably small percentage that next question. Please.
Speaker Change: The next question comes from Stephane <unk> from Raymond James So Anthony. Please go ahead. Your line is open.
Speaker Change: Hakan.
Speaker Change: Hey, two quick questions on <unk>.
Stephane: Because like the next 12 to 18 months just given you have slowed our growth plan are there any kind of major cost items that you think from current trends, you'll see kind of greater pressure or maybe because some of the items that you were working on that might see less pressure than youre seeing today and then just on the second question could you just talk about the steps that you need to take to migrate that last 25.
Stephane: And our customers.
Speaker Change: In Canada the App in.
Speaker Change: And are there any kind of related cost savings that you are expecting.
Speaker Change: [laughter].
Speaker Change: Okay.
Speaker Change: Second half relative to the first half of next 12 to 18 months on cost side I mean, I think they did the two that we would do it but focus on at the moment as you know the propensity of governments like the French and the UK too.
Speaker Change: Look for increased taxes.
Speaker Change: On Air travel I think we've seen very significant successes in getting the the Irish the Hungarian the Swedes the Italian regions to roll back taxes, but there's no doubt in my mind that the U K and French who are going in the opposite direction I would worry about route charges.
Speaker Change: Although.
Speaker Change: I think while we think theres some reasonably simple solution tier on route charges like protecting overflights and making sure that they all show up to work we're seeing in the morning, I think it would be used by governments as a way of trying.
Speaker Change: Trying to drive up on by Eas piece to drive up.
Speaker Change: <unk> ATC fees by above inflation other than that we think airports and handling labor aircraft and ownership in our financing income line, we continue to be strong but.
Speaker Change: But I think.
Speaker Change: Hi.
Speaker Change: Draw comfort from our cost performance in the first half of this year and over the phone part this year no. Other airline in Europe is going out there this year with costs flat on that.
Speaker Change: They are kinda scabbing, the P&L by recognizing lots for sale leaseback profits through the P&L I think the real upside for us in the next 12 months with our capacity constrained.
Speaker Change: Revenue for frequency reductions and along with the bigger markets.
Speaker Change: There's a real potential to the upside on pricing in fairs.
Speaker Change: But you didn't hope we're beginning to see that as we move into Q3.
Speaker Change: There's no doubt in my mind with strong bookings pricing the price declines are moderating a lot depends on what happens in summer 2025, but I would be reasonably optimistic that.
Speaker Change: And again against prior year weak Comparables will see fares open somewhere between 25 and.
Speaker Change: Eddie do you want to talk about could migrate to the other 25% of customers to the App.
Speaker Change: Yes.
Eddie: The real benefits here and we've seen as flowing through from the App on the day of travel App, where we're actually able to communicate.
Speaker Change: What date, you're going to any delays that might be coming and we're just we're able to manage that much much better in the next phase of this whether it be on the.
Speaker Change: You'll be able to guess you'd be able to manage operational problems.
Speaker Change: More easily on the day. So for example, if you're down gauging in aircraft with Atg will go through it to an 800 different seat configuration, you'll be able to virtually do that in real time without people having to.
Speaker Change: <unk>.
Speaker Change: Talk about which needs there in in all of those things that will drive operational efficiency 25 minute turnarounds and Theres also the ability when you've got everybody on this app.
Speaker Change: To get around those old legacy systems that are out airports, which have been around since all God's time seasoned systems etcetera, youll be able to manage queues are virtual boarding areas et cetera, so that will speed up.
Speaker Change: I mean that speeds up.
Speaker Change: Getting people on aircraft trading around on time, particularly as more larger gauge aircraft come online, we've got to be thinking about that as well and ultimately save it saves paper.
Speaker Change: There will be ultimately a cost benefit for us and getting around legacy systems and it'll be a much better experience and it will be in place for next summer.
Speaker Change: And you can see that you'll need a smartphone.
Speaker Change: To do that 70% of the people do like we did this before with online.
Speaker Change: Online check in and people didn't have to go to a check in desks. It's another change, but I think people see the benefit of others.
Speaker Change: Okay.
Speaker Change: Very optimistic I think we know we can't guarantee is eliminate 100% of you know things like a boarding card reissue fees.
Speaker Change: Airport check in fees, but really if we have everybody on the app and we're sending you messages.
Speaker Change: It should really collapse those be the dose that goes.
Speaker Change: Fees, which are really are a source of irritation to a small number of passengers.
Speaker Change: Creasing leaders acute the vast.
Speaker Change: Majority of our posture is to arrive at airports without having checked in our customers to go of Otas, who werent passed on the reminder, emails or the text SMS is went to some.
Speaker Change: Fake mobile phone number when.
Speaker Change: If we have 100% of people on the App you will be getting the reminders.
Speaker Change: And I think everybody that you'll be able to check in there on your phone the day before you travel, we should really be able to eliminate 100%.
Speaker Change: Will it be something more on who will ignore the message I think is spine and wound back in if they still arrive at the airport and I haven't checked it and they will be.
Speaker Change: There will be hit with a fee, but we think we should be able to collapse that to almost zero.
Speaker Change: Once we have everybody on the App, so there'll be a real boost I think in our interaction with customers, but also eliminating some of those annoying fees for customers some of which are they only pay because the otas didn't cost them on all kind of reminder, email and text SMS.
Speaker Change: Next question please.
Speaker Change: The next question comes from Duane <unk> from Evercore ISI. Your line is open. Please go ahead.
Duane: Hey, good morning, thanks for going into overtime here.
Speaker Change: Overstaffing.
Duane <unk>: Have you paused pilot hiring.
Speaker Change: And maybe you could put into context, the number of pilots you plan to hire in the next year versus what you've done the last couple of years and then really the point of the question is do you have an estimate.
Speaker Change: The size of the cost headwind from Overstaffing, which presumably should should work itself out over the next year or two.
Speaker Change: I think so I mean.
Speaker Change: I wouldn't want to put a particular number on it but you know we had geared up we were crude for we had to have a trained up and you know we recruit and train pilots in the January in the first and in the first calendar first two calendar quarters.
Speaker Change: We had hired more than more pilots and aircraft on chemical for 20 more aircraft than we actually operated through summer of 2025 now we could have taken the decision right now.
Speaker Change: Make them rebuilding to get rid of that we won't.
Speaker Change: We did think natural attrition would.
Speaker Change: Take them out.
Speaker Change: Actually at the moment, we have very little attrition of pilots and cabin crew.
Speaker Change: An all time record lows low turnover of pilots and cabin crew so.
Speaker Change: We do seem to suffer I think it was.
Speaker Change: Minimizing some of you Tuesday, one compensation costs be called up we did have more standby pilots of standby cabin crew, but we wouldn't want to do it again and I think that's why we're telegraphing now to the market early we're taking down the growth next year.
Speaker Change: We are seeing today $210 million, if Boeing come back with adverse news between now and Christmas wants to try to strike as Rob I mean, Stephanie focus commitment to me she'll come back to me once they are out of the strike and our people back to work you'll give me a definitive delivery on our nine Q4.
Speaker Change: The deliveries have been how many of the 29 aircrafts. The last thing I know, we're going to get advance up and I said, when I say somewhere 25, I said I'm already taken aircraft up to the end of June I'm, not counting anything in July and August.
Speaker Change: We were trying to take deliveries of July trying to take deliveries in August we have crews ready to go.
Speaker Change: We had them on sale and we have to chop and change the schedule was like it was very disruptive and costly.
Speaker Change: But because of the lack of attrition at the moment, we have stepped down or canceled a lot of pilot recruitment and training.
Speaker Change: Minor agreements and cabin crew recruitment and training both in the calendar fourth quarter ended the calendar first quarter of next year.
Speaker Change: Arguably some modest pilot recruitment, but its very modest almost all of it will be taken by architectural would be absorbed by our cadet programs.
Speaker Change: Recruiting architects second officer promoting them through the first officers and there's very few people, leaving at the moment, there's not a lot of older 737 jobs across Europe.
Speaker Change: Very good demand in the middle East for 737 pilots.
Speaker Change: And so I think our turnover attrition of pilots is that.
Speaker Change: No all time low.
Speaker Change: Which is good I think people are generally happy with where they are they are getting the benefit of significant pay increase of productivity pay increases over the last two years.
Speaker Change: And people seem to be generally happy with life and nobody's leave it hasnt.
Speaker Change: I've been through as a.
Speaker Change: Same situation, but again because of the recruitment and training of character, who has a much shorter cycle.
Speaker Change: But we have counseled our loss of recruitment and training bad.
Speaker Change: Programs that we had planned in the Q in Q3, and Q4 and calendar Q1 of next year, we will do some cabin crew recruitment and training in the first half of next year, but probably already running at about 30 or 40% of what we would have normally done in previous years, when we when attrition was higher.
Speaker Change: So, but I think we had a meaningful cost penalty this year.
Speaker Change: Look it over the full year, we expect the the kind of.
Speaker Change: Yeah.
Speaker Change: The staff costs going to rise traffic up about 9% staff costs will rise between high teens.
Speaker Change: Some of that.
Speaker Change: Essentially points out is because we were over accrued through the summer with those pilots and cabin crew for the 20 aircraft, which we didn't get so and I hate this off the top of it we're down 5 million passengers. We don't have yet we've lost at that 5 million passengers. We've lost ancillary revenue was 5 million passengers, but we probably need the crews through the summer is at the same time.
Speaker Change: Neil you want to add anything on that.
Neil: So I think you covered it very well.
Speaker Change: The 20 aircraft worth of all recruiting was the key lag for us this year.
Speaker Change: And hopefully we can manage that down a bit.
Speaker Change: Into next year.
Speaker Change: We're growing four for less aircraft in the face when it will accrue appropriately.
Speaker Change: Yes.
Speaker Change: Thanks Duane.
Speaker Change: Yesterday.
Speaker Change: The next question comes from Ruby Cullinane from RBC. Your line is now open. Please go ahead.
Speaker Change: Hi.
Speaker Change: Yes.
Speaker Change: <unk>.
Ruby Cullinane: Firstly on slide 17 of your presentation, you talked about 10% passenger growth and full year 2007.
Speaker Change: 1% fleet growth.
Speaker Change: Should we think about that and then secondly.
Speaker Change: I was wondering if in Q3, you booked to date pricing was much different from your expectations given the slightly with prior year compute.
Speaker Change: From <unk>, Ron restaurants from their websites last night on the thank you.
Speaker Change: Yeah.
Speaker Change: Thanks Corey.
Speaker Change: I cant remember off top my head it was on slide number traffic number being for FY 'twenty seven.
Speaker Change: Oh hang on.
Speaker Change: How much of the European there, which as you know.
Speaker Change: Point in time, it may or may not be that number depending on the number of aircraft.
Speaker Change: I think that's reasonable like we would expect for <unk>.
Speaker Change: 27, I mean, a lot of things that would be dependent on getting at Boeing deliver all of the trying to I mean, I bet and assurance to Stephanie pulp on Friday.
Speaker Change: While the way they've made me some of the deliveries for summer 2025, we will have all of the remaining game change the 210 game changers in the system by.
Speaker Change: For silver 26, I think it would be reasonable that we would get close.
Speaker Change: Close to $230 million. So we are determined to continue to hit those traffic numbers, but they're dependent on Boeing delivery delays.
Speaker Change: So if you take our FY 'twenty five originally we are 200 million I think it would be at about $199 and change FY 'twenty. Six was originally $2 15, we would step that back now towards about 210.
Speaker Change: I see no reason why we wouldn't be able to get that back up towards 230 million for FY 'twenty seven now maybe it might be 225% to 27% 28, but we will.
Speaker Change: As soon as we get those aircraft, we can deploy them profitably.
Speaker Change: And so I think that's reasonable we then will have a year or two I am not sure about FY 'twenty as our FY 'twenty nine because we will at that point in time be facing with re delivering some of the allowed <unk> III <unk> and we're heavily depend on Boeing not having any delivery delays on the first of the of the.
Speaker Change: The Max 10.
Speaker Change: On Q3, and the Otas locations are to separate this I mean, all we can give you is what we have at the moment that is that the forward bookings into Q3 are strong we released the October traffic SaaS. This morning, 94% load factor traffic up 7%.
Speaker Change: And that was with the even with the Boeing delivery delays.
Speaker Change: <unk>.
Speaker Change: It's hard to again say how much of that is use the otas coming back online Andy has made the point, while we have approved it delayed deals in place with over 90% of the Otas spoke with them have not yet got the pipes. The API pipe fully functional because their it departments are slower than some of the bigger ones who are better at it.
Speaker Change: Right.
Speaker Change: And so I think theres more to come from the Otas in Q3 and Q4, but.
Speaker Change: But what we can tell you at this point in time is traffic growth is strong we would still expect.
Speaker Change: In Q3.
Speaker Change: The schedule traffic in Q.
Speaker Change: Q3 to be up some 7% to 8% in line with the October number.
Speaker Change: And the price decline is certainly moderating and I go back again minus 15 in Q1 some of that was the Easter moving into Q4 minus seven in Q2, I think a midpoint between zero and minus five in Q3 would be a reasonable back at the envelope. It's not a forecast. Please don't quoted back to me at some bloody forecast.
Speaker Change: But it is moderating and then it's just hard to know how much Easter will affect Q4, but whenever we have a tough prior year comp of Q4, we will have a bumper Q1, because we have all of Easter in there.
Speaker Change: Next year's Q1, whereas we only had half fees during the prior in this year's Q1.
Speaker Change: Thanks, Robbie next question please.
Speaker Change: The next question comes from Andrew <unk> from Barclays. Andrew Your line is open. Please go ahead.
Speaker Change: Hi.
Andrew: You're cutting capacity to the U K, you say by 10%, what you're going to do with those slot.
Andrew: And then the second question, Frank turnkey IC aboard with it yet.
Speaker Change:
Speaker Change: What I'm, saying.
Speaker Change: The otas.
Speaker Change: <unk> signed up for.
Speaker Change: I.
Speaker Change: E train to kind of launch I think so.
Speaker Change: Would it be sad to say that that represented more than 10% of your passengers back from last year.
Speaker Change: Actually you're missing a bit more than the 10% you suggest that.
Speaker Change: What is the pathway forward to kiss and makeup with the train.
Andrew: Okay. Thanks, Andrew.
Speaker Change: As I say, we tried it made the point that the a lot of the airports in the U K. If we cut about 5 million passengers out of the U K next year. It will be done on frequency, we won't move aircraft, we won't vacate overnight aircraft at play so most of our U K airports are not slot restricted but we start you wouldn't reduce overnight aircraft at the big airports dance it matches.
Speaker Change: Sure.
Speaker Change: I'm trying to think.
Speaker Change: On top of my head, but any other set of controls I don't think so Edinburgh and Glasgow with virtually right, but we will take kind of.
Speaker Change: Some.
Speaker Change: So a lot of the capacity we operated at those airports is on aircraft that are based elsewhere in the R&R in Europe.
Speaker Change: Those airports, we will divert some of those frequencies away from the U K or the lower cost destinations like easily reasonably easily.
Speaker Change: And central Eastern Europe.
Speaker Change: <unk>.
Speaker Change: Seeing incentives are increasing incentives. So we don't think we wouldn't compromise slots or any of that.
Speaker Change: All of UK airports were soft for a certain issue on the Otas E. Dreams is one of the bigger ones, but it's nowhere near 10% of our passengers.
Speaker Change: None of the Otas on their own or are significant have significant impact on our volumes.
Speaker Change: They're all reasonably modest on a standalone basis.
Speaker Change: If you look at the E Dreams business model. However, most almost 100% what they claim to be profitability is coming from the E dreams Prime subscription where they promised you a discount on our 100% of flights and yet on every place we try as they're overcharging customers. We think it's inevitable really dreams will ultimately have to sign up.
Speaker Change: Because I think theyre going to cede market share to other competitors like look all of these.
Speaker Change: The other Otas, who was if you take it because the other <unk> can now offer low low Ryanair affairs, Ryan here as prices, whereas the EPA is still trying to run a business where their in fleeting Ryan airfares and it ran at the cost of running our ancillary services and I think given the transparency of the web.
Speaker Change: But that they will have to sign up eventually we are indifferent just the way they do where they don't.
Speaker Change: But at the moment, we're off sale with E dreams that suits US fine we don't want to be unsafe with anybody who is raising our airfares are overcharging, our customers and it's the Montefiore dreams, we frankly couldn't care less it's not going to make any difference to us going forward, but we are absolutely determined to ensure that nobody gets between us and our customers.
Speaker Change: And if we buy work you would approved otas ensure that those otas are offering their customers real Ryan air fares, and we're getting real close to them or emails and real customer payment details.
Speaker Change: Anybody else want to add anything on the dreams.
Speaker Change: E site.
Speaker Change: Free.
Speaker Change: Okay next question please.
Speaker Change: The next question is from Gerard <unk> from Panama Library, Joe Joe.
Speaker Change: One is open. Please go ahead.
Speaker Change: I'm wondering if once you if I can firstly on the tax rates, which seems a bit high at 14% in Q2, obviously.
Speaker Change: I was just wondering why that wasn't what would be a sensible assumption for the full year.
Speaker Change: And secondly on your device excellent delivery schedule could you kind of like what you've actually assumed in terms of timing of resolution of the strike at Chipotle. Please.
Speaker Change: Okay.
Speaker Change: But neil or maybe Tracy Mccann.
Speaker Change: Pinedale was attacked me and then I'll take the Boeing delivery schedule.
Speaker Change: Yes, I'm happy to jump in there on the Tox Gerald.
Speaker Change: As Youre, probably aware, we make most of our profits in the first half of the year.
Speaker Change: Jurisdictions, where tax rates are slightly higher, whereas we tend to make less money in the second half of the year. So youll see the the tax rate migrate down as loss estimates that its almost to the market.
Speaker Change: H two I think a reasonable assumption for the full year would be somewhere close between 10 and 11% tax.
Speaker Change: For the full year.
Speaker Change: Yeah.
Speaker Change: Thanks, Neal and on the aircraft delivery schedule, we put there and updated aircraft delivery schedule more choice. So we can give you a sense of where we think we are in terms of the additional Boeing delivery delays and white, that's causing us to step back our trial with traffic.
Speaker Change: Forecast for FY 'twenty five but also for FY 'twenty six we've made no assumptions on the settlement of the strike and the reason, we're describing there's a valid today on the 38% pay increase.
Speaker Change: No idea, whether if we get things are not Boeing themselves think it's about 50 50, I suspect that labor may well turn it down if they are at 38% I mean, my view is these guys will hang out for 40%, but what do I know.
Speaker Change: All we're saying there is that's what our current forecast would be for FY 'twenty six to get to.
Speaker Change: 210 million passengers, we need to get the FERC benign delayed Q4 aircraft in by the end of April or May.
Speaker Change: We get those in the fourth quarter and then the critical issue is how many of the 2019 additional aircraft you would get by the end of June we're not going to straight you're 90 aircraft deliveries in July or August.
Speaker Change: So whatever we get by the end of June at this point in time, I think 15 is a reasonable assumption.
Speaker Change: But I would that's heavily quantified by what's going on.
Speaker Change: I told her Stephanie pulp on Friday, they will update their delivery schedule is with us once the strike is finished and they have they think that they will take about four weeks to get back into kind of full production. After the strike we.
Speaker Change: We hope to try get resolved this week in which case the piece that back up to full production before Thanksgiving and Christmas or after Thanksgiving before Christmas.
Speaker Change: But there is a real risk that those will get less of those 15 aircraft in time by the end of June if it can it five I don't know what that impact will be we would have to move some of our traffic growth out of FY 'twenty takes it into FY 'twenty seven.
Speaker Change: But.
Speaker Change: I would caution against the more we have to delay our growth the better I think would be the outcome for pricing in summer 2025.
Speaker Change: And in FY 2026, with a weak prior year comp in FY 2025.
Speaker Change: Okay. Thanks very much.
Speaker Change: Personally I would like to take as many aircraft as we can guess what it is.
Speaker Change: As a shareholder I think the more of the aircraft are delayed to better it would be for our profitability in FY 'twenty six.
Speaker Change: Thanks, Our next question please.
Speaker Change: Our last question comes from <unk> from Morgan Stanley. Your line is open. Please go ahead.
Speaker Change: Yeah.
Speaker Change: Hi, guys. Good morning first question is just on the buyback you talked about the slowdown being influenced by the payback of fall next year lower Capex. This year accelerating but I'm wondering if there's any influence by the truck.
Speaker Change: You're also expecting potential rule changes on the ownership and if basically it would make more sense to hold back some of the cost to do more of the buyback on the ordinary.
Speaker Change: Second question on the prerecorded call Neil you spoke about a willingness to explore other financing options if they become more attractive than.
Speaker Change: I'm just wondering if that's all we need to really kind of change the capital structure or if you also consider extra leasing to bump up the growth of the overall business over the next few years, thanks very much.
Speaker Change: Hey, Thanks, I'll take the first again near the end to take the second on the buybacks I don't think their review of the ownership and control would have any difference.
Speaker Change: Buy backs are not driven.
Speaker Change: The pricing of the discount on the ordinaries are on the ADR. So I mean, we have the current buyback, we skewed 70, Turkey towards the ADR is anyway.
Speaker Change: But I think it's instructive that since we began this consultation process with the shareholders the discount on the ordinaries.
Speaker Change: Uh huh.
Speaker Change: Eroded from 29% to 18% and almost all of that has come as a result of.
Speaker Change: The cost of the or the pricing on the ordinaries rising.
Speaker Change: Even at the time, when we are buying more <unk> than ordinaries.
Speaker Change: So I don't think it would make any significant difference.
Speaker Change: If the board was to change the ownership or the control rules in conjunction with our regulators, we would still be facing I think material.
Speaker Change: Material challenge a very strong.
Speaker Change: Cash generation as long as we maintain kind of current profitability for the next two or three years, while we have a.
Speaker Change: Okay Alright.
Speaker Change: A falloff in Capex.
Speaker Change: What drives on share buybacks is a.
Speaker Change: Surplus internally generated free cash flow, we have no other uses for that cash and therefore, where.
Speaker Change: With evident this year, we compete in 700 million in share buyback now I think there was no doubt that the the decline in the share price as a result of the disappointing guidance on are all disappointed in guidance.
Speaker Change: Pricing in first this summer.
Speaker Change: Incentivize the board I think to move quickly and to accelerate the share buybacks, but it was driven by having surplus cash I think the surplus cash will be a little tighter for the next year or two given the two big bond repayments, but there should still be room for share buybacks over those two years and then we're back into.
Speaker Change: Significant capex as we start as the Max.
Speaker Change: When deliveries start to rollout in the first half of 2027.
Speaker Change: I don't think the bond the board's willingness to look at buybacks will be in any way affected by the consultation process on ownership and control it will be driven solely by our ability to continue to generate.
Speaker Change: Really strong free cash flow and deploying that free cash flow in terms of shareholder returns.
Speaker Change: Look around me at our competitors all of whom are.
Speaker Change: Massive niche positions in yet.
Speaker Change: We've returned 9 billion to shareholders over the last 15 years and I think there's every indication through a combination of dividends and share buybacks that we'd be able to continue that.
Speaker Change: <unk> market leading performance.
Speaker Change: A couple of years.
Speaker Change: Neil I forgot the second half due to prerecord on them.
Speaker Change: Yeah and financing options are available to us color, we've always been opportunistic in what we do the reality is in relation to leasing we've got a higher investment grade raising than any of the lessors out there. So we can raise money cheaper down the lessors.
Speaker Change: They would have to have a compelling reason for why we would go towards that.
Speaker Change: Financing.
Speaker Change: I can't see what capacity constrained for some years that the lessors are going to reduce what are now sky high leasing rates, which thankfully, we're not paying but our competitors are.
Speaker Change: But if the bond market for example was to become cheaper financing ourselves out of cash to refinance bonds and stuff like that we might look at us.
Speaker Change: Potentially in a few years' time, when what when we're trying to take some of the residual risk from the AMG is off the balance sheet, we might look at less stores, but I think if they're pricing remains where it's us that.
Speaker Change: That wouldn't be my first second or third port of call.
Speaker Change: When it comes to looking at alternatives to our current cash.
Speaker Change: Very clear thanks, very much spoke again.
Speaker Change: And again I think looking forward into next year nothing feels to me more full of optimism more than the aircraft lessor is making record profits.
Speaker Change: Lease extensions or new aircraft leases to our competitor airlines they are dry.
Speaker Change: Driving up the cost of operations of our competitors across Europe at a time, when we're taking buying new aircraft.
Speaker Change: Using our balance sheet.
Speaker Change: And those aircraft are.
Speaker Change: Sorry.
Speaker Change: 4% or more.
Speaker Change: More passengers with Bernie 16%, that's usually when we get the Max 10, 20% more passengers.
Speaker Change: 20%, let's you.
Speaker Change: So I'm very optimistic going forward that the unit cost gap between us and our competitors will continue to widen and our competition in Europe are going to be under significant pressure you look it as offensive results last week Air France. This week.
Speaker Change: Oh, you're talking about EBIT, because there isn't any earnings there. These guys didn't get strained capacity market are going to drive up air fares for the next couple of years and I think that would give us a lot of headroom for to see modest growth in airfares.
Speaker Change: Which will flow through to Ryanair is bottom line.
Speaker Change: Any other questions or to be that at the end of it.
Speaker Change: That concludes the Q&A session I'll hand back to yourself.
Speaker Change: Thank you very much everybody I think we brought in an hour and a half on questions. Q&A. We have an extensive roadshow in place I'm about me in a number of the team are over here in the U S and Neil is in the UK heading for the U S. Eddie and Theres. Other team members will be covering our investor meet these arent in the UK and Europe, if anybody wants a meeting with us. Please.
Speaker Change: And your contract Davies good bodies are city, we'd be very happy to have a meeting with any investors.
Speaker Change: Yes, I can do it by saying look I think we've had a approach somewhere on pricing we were surprised by the downturn in pricing after two years of very strong pricing.
Speaker Change: You had mentioned is just any takeaways from this call. Though is look at the unit cost performance of unit cost performance is absolutely fine.
Speaker Change: We are doing a center job on containing costs, we've been surprised by the weakness in pricing this year, but I think it's reasonable to expect that pricing will be will move modestly upwards for the next number two in a heavily constrained marketplace as long as there's no geopolitical events.
Speaker Change: Air travel.
Speaker Change: I would think the ryanair balance sheet uncertainty runners P&L is poised to benefit from any improvement in pricing or alternative pricing next year, particularly as we move into FY 'twenty six with a very weak prior year comp.
Speaker Change: And with that I say, thank you very much I look forward to seeing you all at some stage over the next week, our needle and traced needle adjacent going out to the player Industrials conference in Chicago.
Speaker Change: Baird Industrial conference in Chicago next week as well so if we don't get to you this way.
Speaker Change: The meeting with Neil are adjacent there'll be in Chicago next week, thanks, everybody see.
Speaker Change: See you soon thanks bye.
Speaker Change: This concludes today's call. Thank you very much for your attendance you may now disconnect your lines.
Speaker Change: [music].
Speaker Change: Yes.
Speaker Change: Yeah.
Speaker Change: Yeah.
Speaker Change: Okay.
Speaker Change: Yeah.
Speaker Change: [music].
Speaker Change: Yeah.
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Yes.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: Yeah.
Speaker Change: Yeah.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: Yeah.
Speaker Change: Okay.
Speaker Change: Yeah.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: [music].
Speaker Change: Yes.
Speaker Change: Yeah.
Speaker Change: Yeah.
Speaker Change: [music].
Speaker Change: Yeah.
Speaker Change: Yes.
Yeah.
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Yeah.
Speaker Change: Yeah.
Speaker Change: Yes.
Speaker Change: Yeah.
Speaker Change: Yeah.
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Yeah.
Speaker Change: Yeah.
Speaker Change: Yeah.
Speaker Change: Yes.
Speaker Change: Yeah.
Speaker Change: Yeah.
Speaker Change: Yeah.
Speaker Change: Yeah.
Speaker Change: [music].
Speaker Change: Yes.
Speaker Change: [music].
Yes.
Speaker Change: Yes.
Speaker Change: Yes.
Speaker Change: Yes.
Speaker Change: [music].
Speaker Change: Yeah.
Speaker Change: Okay.