Q3 2025 Ryanair Holdings PLC Earnings Call - Q&A

January 27, 2025

9 million euros due.

Due to traffic growth of 9% to 45 million passengers as marginally higher fares.

You had stronger.

<unk> Christmas and new year bookings at marginally better fares than we'd expected I would however, caution cumulatively for the nine months the profits of $1 94 billion or 12% below the prior nine months profit after tax of $2 $1 9 billion.

As airfares over the nine month period, our 8% lower than they were in the prior year the.

The Q3 highlights included traffic growth of 9% to $45 million, despite repeated and very frustrating Boeing aircraft delivery delays.

Revenue per passenger rose, 1% in Q3 average fares were up 1% and ancillary revenue up 1%.

However, the approved OTI partnerships are almost fully integrated and working well and we see them.

Trading well into the next into 2025, we have over 80%, 50% of our 800 million buyback was complete at the end of December but we're now just over 60% of it done.

Ancillary revenues in the quarter rose, 10% to $1 4 billion in Q3 operating costs with 9% traffic growth rose, 8% to $2 93 billion as fuel hedge savings offset higher staff and other costs in part due to repeated Boeing delivery delays.

Briefly on the balance sheet on 31 December gross cash was $2 77 billion, which delivers delivered a resulted in a modest quarter end net cash balance of just over 70 million euros. Despite.

$1 1 billion of Capex over $1 1 billion of share buybacks at a $200 million dividend, which was paid last September.

Our own to be a Boeing 787 fleet 500, and over 580 aircraft is fully unencumbered and we believe this is critical as it were significantly widened Ryan there is cost advantage over all other competitor airlines.

While my near prepares to repay a maturing 850 million bond in September and a $1 20.

25, and a $1 2 billion bond in May 2006, our competitors remain exposed to expensive and rising long term finance and aircraft lease costs.

We are now over halfway through our current $800 million buyback and we expect to complete this program by mid 2025, when we finish it Brian and I will have returned almost 9 billion euros, including dividend to our shareholders. Since 2008 with approximately 36% of the issued share capital and repurchased and canceled.

I think the most notable feature of the last quarter and for the next quarter is Boeing aircraft delivery delays decent.

These delays have now forced us to revise our FY 'twenty six traffic target for the third or fourth time. It started originally went from $215 million down to $210 million and we now have Dakota $206 million, which would be just 3% traffic growth for the next 12 months, a very disappointing outcome given the growth opportunities that are available to us across Europe.

We are however, hopeful and I would say modestly confident that the remaining 29 game changers in our 210 aircraft order book will deliver before March 2026, and will enable us to recover this delayed traffic growth in summer 2000, and fixes that are somewhere 25%.

As we were in Seattle, very recently Boeing still expect the Max seven to be certified in the first half of 2025, the Max 10 in late 2025, which.

Which we hope will facilitate the timely delivery of our first 15 Mac turned in spring 2027 as per our contract.

Over the coming summer, we'll reallocate this very space.

<unk> capacity growth to those regions at airports, most notably in Poland, and Spain, and Sweden, and regional Italy, who are investing in growth by abolishing aviation taxes are and are incentivizing traffic growth.

We expect European short haul capacity to remain heavily constrained in summer 2025, as many of Europe's Airbus operators continue to work through the Pratt <unk> Whitney engine repairs as both major aircraft manufacturers struggle with delivery backlogs and as EU airline consolidation continues most recently Asia and now the focus is on.

THP.

I want to touch briefly on the ownership and control issue as you recall the board confirmed over 49% of Brian There's issued share capital was held by Intel by EU Nationals.

In anticipation of the breach in the 50% stretch artificial expense ratio being reached the board deemed it appropriate to review potential variation of the <unk> restrictions as part of this review we have engaged in extensive engagement process with shareholders and regulators began last September and is now is in the advanced stage the current restrictions on share.

The voting by non EU nationals will remain in place during their review, but based on current trends the company expects its EU shareholding will reach 50% to 50% threshold in the first half of 2025 or soon thereafter, and then I think the board will consider and make a decision on whether we maintain the ownership and order control restrictions there.

Laughter.

Switching briefly on outlook I know everybody is very excited by some of our 2025.

Unfortunately.

We have very little visibility at this point in time October 25, we do however, expect our full year 2025 traffic that is to March 25 to reach almost 200 million we might we.

We might finish just short subject to no further adverse news on Boeing delivery delays.

Unit costs are performing well in line with our expectations as the cost gap between Ryanair and EU competitor Airlines widened.

And we expect our unit cost to be broadly flat for the full year. Thanks to our fuel hedge savings are few hedge savings strong interest income and some very modest aircraft delayed compensation in the form of <unk>.

Credit notes against our materials.

Materials and services.

Raptor and then I think the board will consider and make a decision on whether we maintain the ownership and order control restrictions thereafter.

Largely offsetting ex fuel cost inflation, particularly crew pay and productivity issues higher handling and ATC fees and the cost inefficiencies.

Touching briefly on outlook I know everybody is very excited by some of our 2025.

As a result of repeated Boeing 770 delivery delays, while Q3 pairs were marginally stronger than the prior year remember the prior year was impacted by the Otas boycotting late in November 2023. This year's Q4 will not benefit from last year's early Easter, which makes our Q4 prior year comp very very challenging.

Unfortunately, yes.

We have very little visibility at this point in time October 25, we do however, expect our full year 2025 traffic that is to March 25 to reach almost $200 million, we might spike we might finish just short subject to no further adverse news on Boeing delivery delays.

At this stage, we're cautiously guiding full year 'twenty five profit after tax and a range of a 155 billion to $1 six 1 billion euros.

Unit costs are performing well in line with our expectations as the cost gap between Ryanair and EU competitor Airlines widened.

However, the final FY 'twenty five profit after tax outcome remains subject to avoiding adverse external developments between now and the end of March both notably the risk of further Boeing delivery delays.

And we expect our unit cost will be broadly flat for the full year. Thanks to our fuel hedge savings our fuel hedge savings strong interest income and some very modest aircraft delayed compensation in the form of <unk>.

And any.

A short term impact of the risk of conflict in the Ukraine, and the middle East and clearly at the continuing mismanagement of ATC here in Europe, where we continued to be tabled by short staffing, particularly in the first wave of departures and with that.

Credit notes against materials.

Materials and services.

Largely offsetting ex fuel cost inflation, particularly crew pay and productivity issues higher handling and ATC fees and the cost inefficiencies.

I'll hand, it over to you is there anything you want to draw People's attention to in the MD&A of the nine months.

As a result of repeated Boeing 770 delivery delays, while Q3 pairs were marginally stronger than the prior year remember the prior year was impacted by the Otas boycott in late November 2023. This year's Q4 will not benefit from last year's early Easter, which makes our Q4 prior year comp very very challenging.

I don't have a huge amounts of it called out other dance reiterates the strength on the costs the gap between ourselves and competitors continues to widen.

<unk> staff in line with the guidance that we gave back in November with the half years, we're still guiding broadly flat full year unit cost hedging very well hedged into next year, we're over 75% hedged at about $77, a barrel or 770 per metric tonne.

This stage, we're cautiously guiding full year 'twenty five profit after tax in a range of a $1 55 billion to $1 six 1 billion euros.

However, the final FY 'twenty five profit after tax outcome remains subject to avoiding adverse external developments between now and the end of March most notably the risk of further Boeing delivery delays.

On <unk> and then of course.

<unk> called out the balance sheets and very good shape.

Buyback going according to plan, but not everybody else that I want to call out Michael.

And any.

Short term impact of the risk of conflict in the Ukraine, and the middle East and clearly at the continuing mismanagement of ATC here in Europe, where we continued to be tabled by short staffing, particularly in the first wave of departures and with that.

Speaker Change: Okay. Thank you for that with that we'll open up the Q&A. Please.

Speaker Change: We will now begin the question and answer session, if you'd like to ask a question. Please press star followed by one on the telephone keypad. If you change your mind suppressor.

I'll hand, it over to you is there anything you want to drop in potentially with the MD&A of the nine months.

Speaker Change: Well go franchise asking question. Please ensure your devices on mute locally.

Speaker Change: Our first question comes from Stephen furlong from Davy.

I don't have a huge amount sort of call out other dance reiterates the strength on the costs. So the gap between ourselves and competitors continues to widen.

Speaker Change: Your line is now open.

Stefan: Stefan Good morning, Michael.

Speaker Change: Yes.

Speaker Change: Sure.

Speaker Change: Maybe just.

Speaker Change: Maybe just talk again about the type of growth of the summer.

Speaker Change: Kind of go to maybe you can talk about that and then the second thing is.

Speaker Change: Maybe just more generally what you think about the supply chain.

Speaker Change: It's a more aircrafts, Michael or delays or would you say, it's also engines because I know for example, after capital markets day, you talked about maybe in sourcing so imagine shops from 2000 <unk>. So maybe just talk about that thanks a lot.

On <unk> and then of course.

<unk> called out the balance sheets and very good shape.

Michael: Buy back going according to plan, but nothing really else that I want to call out Michael.

Michael: Okay. Thank you for that with that we'll open up the Q&A. Please.

Speaker Change: Okay. Just wanted to ask Andy to take you through the growth of somewhere 25, I think would just be cautious.

Speaker Change: We will now begin the question and answer session, if you'd like to ask a question. Please press star followed by one of your telephone keypad. If you change your mind to suppress national Bank with range with skin question. Please ensure your devices on mute locally.

Speaker Change: Excited careful here.

Speaker Change: Q3, we benefited slightly because of the otas boycott in the prior year comps. So we had an easier prior year comp Q4, we have a challenging prior year comp because we had we wouldn't have visa last year's Q4, as we move into Q1 of <unk> to our summer 'twenty five we have an easier comp because you've only half of Easter in Q.

Stefan: Our first question comes from Stefan.

Debbie: From Debbie.

Speaker Change: Your line is now open.

Speaker Change: Stefan Good morning, Michael.

Speaker Change: Yes.

Speaker Change: One verse issue will have two house of Easter.

Speaker Change: <unk>.

Speaker Change: Maybe just maybe just talk again about the type of growth of the summer where that's going to go to maybe you can talk about that and then the second thing is.

Speaker Change: So the Q1, we're seeing a reasonable bounce in pricing and in volumes, but we have very little visibility into the key second quarter of <unk> 25, which is the September quarter. So we're not going to get into speculation on fares traffic other than to say overall Europe capacities.

Speaker Change: Maybe just more generally what you think about the supply chain.

Speaker Change: Is it more aircrafts, Michael or delays or would you say, it's also engines because I know for example, after capital markets day, you talked about maybe in sourcing so imagine shots from 2000 <unk>. So maybe just talk about that thanks a lot.

Speaker Change: Strained we are much more constrained than we would wish to be if Boeing had delivered 29 aircraft. We were due to get this year, we would be growing by about 10 million passengers. We would the original target for <unk> 25 of our FY 2000, <unk> with 215 million passengers, we will struggle to get $206 million and.

Speaker Change: Okay. Just wanted to ask Andy to take you through the growth of somewhere 25, I think would just be cautious.

Speaker Change: We expect to be careful here.

Speaker Change: Q3, we benefited slightly because of the otas boycott in the prior year comps that we had an easier prior year comp Q4, we have a challenging prior year comp because we had we wouldn't have leased in last year's Q4, as we move into Q1 of <unk> to our summer 'twenty five we have an easier comp because you've only half of Easter in Q.

Speaker Change: It is very frustrating that we can't grow it at a time when most of our competitors across Europe are heavily constrained because of Airbus engine repairs, but we are where we are.

Speaker Change: We do however believe that that constraint though.

Speaker Change: His will be modestly beneficial for our forward bookings and four were on pricing into summer of 2026.

Speaker Change: Whereas this year, we'll have two halves of Easter.

Speaker Change: As long as there is nothing untoward and we live in a world where there is lots of risks most notably further Boeing delivery delays Trump.

Speaker Change: In the White house.

And.

Speaker Change: The what may happen with the Ukraine conflict and in the Middle East.

Speaker Change: Can I just touch on the supply chain, we don't see this being a supply chain issue with Boeing Boeing have particular problems with where they were coming from the Max grounding. They were catching up huge backlogs of deliveries and then they had a two month strike in November December.

Speaker Change: Strained we are much more constrained than we would wish to be if Boeing had delivered 29 aircraft. We were due to get this year, we would be growing by about 10 million passengers. We would the original target for <unk> 25 of our FY 'twenty with 215 million passengers, we will struggle to get $206 million and.

Speaker Change: We have been a little disappointed with how slow they had been to reboot manufacturing through January December January into February.

Speaker Change: They are making progress, but he is slow progress and we are very much at the front end of that slow progress.

Speaker Change: We do however believe that that constraint though.

Speaker Change: We had expected originally 25 aircraft for summer 2020 at Enbridge reduced 15, and now we're back to nine aircrafts were pretty certain we will get those nine aircraft because most of those fuselages are actually already in Seattle.

Speaker Change: His will be modestly beneficial for our forward bookings and full were on pricing into summer of 2026.

Speaker Change: As long as there is nothing untoward and we live in a world where there is lots of risks most notably further Boeing delivery delays Trump.

Speaker Change: But there are no supply chain issues are constraining Boeing at the moment. If you go to Seattle, they have lots of spare engines theres lots of spares. There. The issue. There is lots of fuselage is backed up in Wichita.

Speaker Change: In the White house.

And.

Speaker Change: The what may happen with the Ukraine conflict and in the Middle East.

Speaker Change: Problem is getting the pull through and getting production up in Seattle, we are reasonably hopeful that <unk> nothing else goes wrong with Boeing that they will build back up their production reasonably quickly and we'll be back up at 38% 38 aircrafts by the end of the summer.

Speaker Change: We have been a little disappointed with how slow they had been to reboot manufacturing through January December January into February.

Speaker Change: We would hope to see them getting to 40 38, they expect to get to 38 by the middle of the summer and we would hope they would be up at around 42 in October but that does need an FAA approval to go from 38 to 42. So there are no supply chain issues with that there are over the medium term however supply chain challenges.

Speaker Change: They are making progress, but he is slow progress and we are very much at the front end of that slow progress.

Speaker Change: We had expected originally 25 aircraft for summer 2020 at Enbridge reduced to 15 and now we're back to nine aircrafts were pretty certain we get those nine aircraft because most of those fuselages are actually already in Seattle.

Speaker Change: Clearly with engine maintenance shops around the world and we are actively engaged in a process, where we're looking at setting up one or two.

Speaker Change: Engine maintenance shops in house ourselves over the next 12 to 18 months.

Speaker Change: <unk>.

Speaker Change: Anything you want to draw People's attention to and are constrained growth for silver.

Speaker Change: The constrained growth has really pointers.

Speaker Change: Who are the churn that we've gone through an airport where.

Speaker Change: Problem is getting them pull to Seattle and getting production up in Seattle, we are reasonably hopeful that <unk> nothing else goes wrong with Boeing that they will build back up their production reasonably quickly and we'll be back up at 38% 38 aircrafts by the end of the summer.

Speaker Change: Where we are rewarded like countries regions at airports, where we have.

Speaker Change: Where we've got reducing costs, thus reflected in either airport charges or taxes. So if you look at places like Italy and municipal tax going in.

Speaker Change: Three regions.

Speaker Change: And so we've had additional aircrafts going into <unk> in Reggio boating collaborate ultra and three assay and then more recently in the last two weeks in a route so that tax has been.

It has been reduced or is gone and at 650 euros per passenger that youll see in places like Spain, where suddenly we see that while we're still growing at major airports. It is brought into sharp focus the competitiveness of our regional airports as you have seen the spot that we've had there in recent weeks, where you've got the airports.

Speaker Change: Clearly with engine maintenance shops around the world and we are actively engaged in a process where were looking at setting up one or two.

Engine maintenance shops in house ourselves over the next 12 to 18 months.

Speaker Change: <unk>.

Speaker Change: Anything you want to draw People's attention to and are constrained growth for silver.

Speaker Change: Moving at all so heavily towards ledger in the tourist hotspots.

Speaker Change: The constrained growth has really pointers.

Speaker Change: Polaris and the Malaga and Alicante, where we've put in extra capacity.

Speaker Change: Who are the churn that we've done through an airport where.

Speaker Change: Capacity as you look right around there in places like Sweden, the aviation taxes Gulf, We've increased our based aircraft in Sweden by those.

Speaker Change: Where we have rewarded like countries regions at airports, where we have.

Speaker Change: Where we've got reducing cost best reflected in either airport charges or taxes. So if you look at places like Italy and municipal tax going in.

Speaker Change: <unk>, 30%.

Speaker Change: And then you look in places like Central and Eastern Europe, whereby you have Croatia.

Speaker Change: With our new base doing very well in Dubrovnik, you've got hungry with taxes going even in Dublin, This week, where you've got the.

Three regions Nam.

Speaker Change: And so we've had additional aircrafts going into <unk> and Red Bulls and collaborate at ultra and three assay and then more recently in the last two weeks in a route so that tax has been.

Speaker Change: The incentive for game changer is going in so that we're getting reduced cost and because of less noise emissions and less fuel burn so.

Speaker Change: <unk> has been reduced or is gone and at 650 euros per passenger that youll see in places like Spain, where suddenly we see that while we're still growing at major airports. It is brought into sharp focus the competitiveness of our regional airports that you have seen the spot that we've had there in recent weeks, where you've got the airports.

Speaker Change: Even in Germany, whereby you have got this disconnect standards.

We're a major airports continue to ratchet up prices through federal taxes, you'll still have the smaller regional airports.

Speaker Change: Places like neither HUD Baden Baden fighting very hard for capacity, so less capacity, bringing those bringing costs into sharp focus in Europe does that reduce costs are being rewarded for those that don't have enough are not getting any of that growth and in some cases are in reverse.

<unk> not moving at all so heavily towards ledger in the tourist hotspots.

Speaker Change: <unk> and the Malaga and Alicante, where we've put in extra.

Speaker Change: Capacity as you look right around there in places like Sweden, the aviation taxes done we've increased our based aircraft in Sweden by about 30%.

Speaker Change: And I would highlight the case of the UK economy in particular, where you've ratio Reeves, claiming that to deliver growth for first day initiative with the increased Apd, which immediately damages air travel to and from the U K and now trying to distract everybody by supporting a third runway and Heathrow.

Speaker Change: When you look in places like central and Eastern Europe, whereby you have Croatia.

Speaker Change: With our new pace doing very well in Dubrovnik, you've got hungry with taxes going even in Dublin, This week, where you've got the.

Speaker Change: Third runway will be may or may not deliver delivered in my lifetime.

Speaker Change: The incentive for game changer is going in so that we're getting reduced cost.

Speaker Change: I wouldn't hold my breath, but if you're really serious in it that Goldman is serious about growth they should be scrapping apd and stop worrying about a third runway in Heathrow, there's lots of runway capacity still intensive Luton in regional UK work, Manchester Liverpool Birmingham risks.

Speaker Change: Cause of less noise emissions and less fuel burn so and even in Germany, whereby you have got this disconnect standards.

Speaker Change: We're a major airports continue to ratchet up prices through federal taxes, Youll still have the smaller regional airports.

Speaker Change: Glasgow, Edinburgh hug loss of capacity for growth, but the first thing she doses don't book, the taxes, which harms growth and encourages us to reallocate capacity and growth away from the UK to markets, like Sweden, Italy, Hungary, and others, where theyre, reducing our abolishing taxes. It's about time these European politicians began.

Speaker Change: Actually tweak you a trump isn't always wrong and if you want growth in European Air travel abolish the stupid taxes, the benefits flow immediately to consumers and there'll be an immediate response in <unk> in terms of growth in the UK, whereas the third runway in Heathrow won't happen for the next 10 or 20 years and it's just a distraction from her failed.

Speaker Change: And I would highlight the case of the UK economy in particular, where your ratio Reeves, claiming that to deliver growth for firstly initiative with the increased Apd, which immediately damages air travel to and from the U K and now trying to distract everybody by supporting third runway in Heathrow. The third runway will be may or may not deliver delivered in my life.

Speaker Change: Policies of raising travel taxes.

Speaker Change: Time.

Speaker Change: I wouldn't hold my breath, but if you're really serious in it that Goldman to series that growth there should be scrapping apd and stop worrying about a third roadway and Heathrow, there's lots of runway capacity still in Stansted and in regional UK work, Manchester Liverpool Birmingham risks.

Speaker Change: Question. Please.

Speaker Change: The next question.

Speaker Change: The next question comes from James Paul Lang, DMT borrow boss James height.

Speaker Change: Yeah. Thanks, two for me. Please first one is on the <unk> update and this is not me trying to get you to talk about pricing and some I was wondering if you can just give a broad a response on what youre seeing in the bookings impact maybe what tech integration still to go and maybe what sort of upside you might see on.

Speaker Change: Glasgow, Edinburgh House loss of capacity for growth, but the first thing she doses don't book the taxes.

Speaker Change: Which harms growth and encourages us to reallocate capacity and growth away from the UK to markets, like Sweden, Italy, Hungary, and others, where theyre, reducing our abolishing taxes. It's about time these European politicians began to actually tweak.

Speaker Change: Pricing into fiscal 'twenty.

Speaker Change: 26, now the OTT deals are done and the second one being.

Speaker Change: <unk>.

Speaker Change: Trump isn't always wrong, and if you want growth in European Air travel abolish the stupid taxes, the benefits flow immediately to consumers and there'll be an immediate response in in terms of growth in the UK, whereas the third runway in Heathrow won't happen over the next 10 or 20 years and it's just a distraction from her failed policies of raising travel taxes.

Speaker Change: While I full year 'twenty six fiscal 'twenty six passengers only up 3%, but in your appendices you call full year 2007, only up 4% I think predict was 10% and obviously got a lot of base, maybe just run me through what I'm missing.

Speaker Change: Okay.

Speaker Change: Tracy on the <unk> update we have we have agreements with over 90% of the major otas.

Speaker Change: Next question please.

Speaker Change: Okay.

Speaker Change: Good question.

Speaker Change: They all are and I think whats critical in those agreements.

Speaker Change: The next question comes from James Paul Lang, DMT borrow boss James Hi.

Speaker Change: The Otas, we gives you direct access into the Ryanair inventory and they agree not to overcharge are our customers. So we're seeing strong forward bookings now. These are small volumes domain can totally otas may account for say about 10% of our total traffic over a full year, but we're seeing a meaningful volumes coming through at a higher.

Speaker Change: Yeah. Thanks, two for me. Please first one is on the <unk> update and this is not me trying to get you to talk about pricing and some I was wondering if you could just give a broad a response on what youre seeing in the bookings impact maybe what tech integration still to go and maybe what sort of upside you might see on <unk>.

Speaker Change: Average payers at the moment through Easter into summer 2025, because they are booking holidays at the moment and they booked Saturday Saturday and they tend to be booking more premium travel dates and more premium time. So we're certainly seeing a reversal of the <unk>.

Speaker Change: Pricing into fiscal 'twenty.

Speaker Change: 26, now the deals are done and the second one being.

Speaker Change: <unk>.

Speaker Change: While I fully at 26 fiscal 'twenty six passengers only up 3%, but in your appendices, you've got full year 'twenty seven only up 4% I think predict was 10% and obviously got a lot of base, maybe just run me through what I'm missing.

Speaker Change: Boycott this time last year, and therefore against a weak prior year comp where string seeing strong numbers out into the summer 2020, but off a very low base I mean, if I look out across.

Speaker Change: Okay.

Speaker Change: Tracy on the <unk> update we have we have agreements with over 90% of the major otas.

Speaker Change: April out of the numbers at the moment.

Speaker Change: We're seeing our forward bookings.

Speaker Change: Some are 25% are running about 1% ahead of where they were at this time last year.

Speaker Change: They are and I think whats critical in those agreements.

Speaker Change: The Otas, we gives you direct access into the Ryan their inventory and they agree not to overcharge are our customers. So we're seeing strong forward bookings now. These are small volumes domain can totally otas may account for say about 10% of our total traffic over a full year, but we're seeing a meaningful volumes coming through at a higher.

Speaker Change: And the prices are very modestly up but only modestly and now April is different because April as two halves of Easter. So Q1 will get a bump, but it's too early to make any predictions on Q2 or Q3.

Speaker Change: The <unk> integration has gone very well, we do see there.

Speaker Change: Actually in some cases better at selling some of the ancillary service than we are and we're learning from that and working with them.

Speaker Change: And some of the Otas are also looking at advancing kind of artificial intelligence and machine learning to improve the way we display and display are fair to price it and then convert people into using the.

Speaker Change: Boycott this time last year, and therefore against a weak prior year comp where string seeing strong numbers out into the summer 2020, but off a very low base. So I mean, if I look out across.

Speaker Change: Ancillary services FY 'twenty six at the moment.

Speaker Change: Boeing because were 29 aircraft short this year the numbers are moving to the right hand side.

Speaker Change: April out of the numbers at the moment.

Speaker Change: So at this point in time, we expect this.

Speaker Change: This year, we'd be probably just a fraction under I mean, we could be Turkey 40000 passengers under the 200 million, we will grow 3% next year to $206 million and then we expect to get much of that back.

Speaker Change: We're seeing our forward bookings into the.

Speaker Change: Some are 25 were running about 1% ahead of where they were at this time last year and the prices are very modestly up but only modestly and now April is different because April as two halves of Easter. So Q1 will get a bump, but it's too early to make any predictions on Q2 or Q3.

Speaker Change: The FY 'twenty seven will grow to about $215 million 29 aircraft play a delayed aircraft if we get all of those.

The <unk> integration has gone very well, we do see out there.

Speaker Change: By the end of March 2026 than FY, 'twenty, <unk>, 250, which would be 4% traffic growth on $206 million.

Speaker Change: Actually in some cases better at selling some of the ancillary services and we are and we're learning from that and working with them, we and some of the Otas are also looking at advancing kind of artificial intelligence and machine learning to improve the way we display and display are fair to price. It and then convert people into using the answer.

Speaker Change: Yes.

By year end 2015, and full year 'twenty seven Europe <unk> previously.

Speaker Change: Just wondering.

Speaker Change: It's in the slide presentation, I mean, I'm not sure where the way we went to 30 with.

Speaker Change: Partly that might've been.

Speaker Change: <unk> services.

Speaker Change: 26 at the moment.

Speaker Change: That number is a movable number <unk>, we have come up with a calculation each years ago, where we got to 230 with some additional.

Speaker Change: Boeing because were 29 aircraft short this year the numbers are moving to the right hand side.

Speaker Change: We buy some additional secondhand aircraft.

Speaker Change: So at this point in time, we expect this year, we'd be probably just a fraction under I mean, we could be Turkey 40000 passengers under the 200 million, we will grow 3% next year to $206 million and then we expect to get much of that back we expect FY 'twenty seven will grow to about 215 billion with the <unk>.

Speaker Change: 230 has now moved back a year to FY 'twenty eight we still think we'll get there, but thats, what we need the Max is a normal more delivery delays.

Speaker Change: Okay cool thank you.

Speaker Change: Don't get too focused on one year over the other all of our growth deliveries are essentially moving back a year to the right at their facilities the growth.

Nine aircraft play a delayed aircraft if we get all of those by.

Speaker Change: Okay.

James: Thanks, James next question please.

Speaker Change: By the end of March 26 than FY, 'twenty, <unk>, 250, which would be 4% traffic growth on $206 million.

Speaker Change: The next question comes from Douglas, Sean Lee from Goodbody.

James: Hi.

Speaker Change: Yes.

Speaker Change: Morning, Michael.

Speaker Change: By year end 2015, and full year 'twenty seven Europe <unk> previously.

Speaker Change: Two questions. If I may the first one is on the slower growth profile next year. I mean are there implications in terms of unit cost something particularly in stuff or does the airport and route churn ability to read he was talking about all set us.

Speaker Change: But just wondering.

Speaker Change: It's in the slide presentation, I mean, I'm not sure where the way we went to Turkey was a.

Speaker Change: Partly that might've been.

Speaker Change: And then the second question is in terms of the outlook for capacity constraint in Europe over the next few years have you seen anything change in that over the last few months. Thank you.

Speaker Change: That number is a movable number <unk>, we have come up with a calculation each years ago, where we got to 230 with some additional.

Speaker Change: Alright.

Speaker Change: We buy some additional secondhand aircraft.

Speaker Change: On a slower growth profile I don't think.

Speaker Change: 230 has now moved back a year to FY 'twenty eight we still think we'll get there, but thats, what we need the Max is a normal more delivery delays.

Speaker Change: We don't see anything that would.

Speaker Change: That should constrain us there the big issue for US last year was we.

Speaker Change: Okay cool thank you.

Speaker Change: Had tooled up to take for 30 aircraft deliveries finish up getting 15, so we were over accrued through the summer.

Speaker Change: Don't get too focused on Goodyear over the other all of our growth deliveries are essentially moving back a year to the right at their facilities the growth.

Speaker Change: As long as Boeing deliver on those 900 to nine aircrafts were due to get this summer we will have a better balance of Crewing. This year, we will and having to over accrued or havent over recruited over trade in fact, if anything.

Speaker Change: Okay.

James: Thanks, James next question please.

Speaker Change: The next question comes from Douglas, Sean Lee from Goodbody.

James: Hi.

Speaker Change: Our attrition rates are running at historically low levels. So.

Speaker Change: Morning, Michael two questions. If I may the first one is on the slower growth profile next year. I mean are there implications in terms of unit cost something particularly in stuff or does the airport and route churn ability that he was talking about all set us.

Speaker Change: Our cutting back and have postponed or canceled a significant amount of pilots and cabin crew recruitment training that would normally take place through our Q3 and Q4, so there might be a little bit of upside there. The churn discussion has been interesting.

Speaker Change: And then the second question is in terms of the outlook for capacity constraint in Europe over the next few years have you seen anything change in that outlook in the last few months. Thank you.

Speaker Change: We have seen significant I think.

Speaker Change: Our results coming out of negotiations that are off a base of airports and also with government.

Speaker Change: Alright.

Speaker Change: On a slower growth profile I don't think it's.

Speaker Change: The day, the rollback of taxes in Sweden in Hungary in regional easily and in some of the other half are a direct result of <unk>.

Speaker Change: We don't see anything that would.

Speaker Change: That should constrain us there the big issue for US last year was we.

Speaker Change: Had tooled up to take for 30 aircraft deliveries that finish up getting 15, so we were over accrued through the summer.

Speaker Change: Those kind of churn discussion and I think again it highlights why the UK is still kind of completely out of touch.

Speaker Change: As long as Boeing deliberate those 900 to nine aircrafts were due to get this summer we will have a better balance of Crewing. This year, we will and having to over accrued or havent over recruited over trade in fact, if anything.

Speaker Change: Delusional stuff like raising taxes at a time when other EU economies are scrapping aviation taxes, and then talking about the third runway at Heathrow in 30 Years' time, it's all meaningless nonsense.

Speaker Change: The accretion rates are running at historically low levels. So.

Speaker Change: But so we don't see that there would be again I think this was a slower growth profile. It's disappointing it's short term.

Speaker Change: We will add only about 6 million passengers. This year $2 6 million and then we will go back to close to 910 million passenger which is what we expect to be our normal growth profile going forward, we expect to be growing at about 10 million passengers a year, so something like four 5% on a 200 million base.

Speaker Change: We have seen significant I think.

Speaker Change: So coming out of negotiations that are off a base of airports and also with government.

Speaker Change: And that has been the our rate of growth in pre in.

Speaker Change: The year to date.

Speaker Change: The rollback of taxes in Sweden in Hungary in regional easily and in some of the other half are a direct result of those kind of churn discussion and I again. It highlights why the UK is still kind of completely out of coach <unk>.

Speaker Change: In prior years, where we didn't have Boeing that delivery delays.

Speaker Change: Eddie you want to just look for capacity.

Speaker Change: Changes, but on the capacity constraints I mean that does bring those decisions into really sharp focus and in different countries. I mean, if you just take what Michael cold out there in Sweden, Sweden can look around and say look SaaS come out of chapter 11 much smaller.

Speaker Change: Delusional stuff like raising taxes at a time when other EU economies are scrapping aviation taxes, and then talking about a third runway at Heathrow in 30 Years' time, it's all meaningless nonsense.

Then it was.

Speaker Change: Before it went in.

Speaker Change: The Norwegian Havent really grown in Sweden, if they.

Speaker Change: But so we don't see that there would be again I think this was a slower growth profile is disappointing its short term.

Speaker Change: I want to have connectivity they look around and say what are we going to do in Ryanair is essentially the only show in town to actually move the dial and increasingly we're able to move the dial even with that reduced capacity places like Morocco, where we've grown by almost 20%, Italy, where it's at.

Speaker Change: We will add only about 6 million passengers. This year $2 6 million and then we will go back to close to 910 million passengers, which is what we expect to be our normal growth profile going forward, we expect to be growing at about 10 million passengers a year, so something like four 5% on a 200 million base.

Speaker Change: That growth is going into those airports, where the municipal taxes.

Speaker Change: Those regions airports know that there is no other.

Speaker Change: And that has been the outrage of growth.

Speaker Change: Yes.

Speaker Change: Carrier volume that can actually solve the problem that they have for making a capacity shortfall post COVID-19. It just comes into sharper focus.

Speaker Change: In prior years, where we didn't have Boeing that delivery delays.

Speaker Change: Eddie you want to just look for capacity.

Speaker Change: But on the capacity constraints I mean that does bring those decisions into really sharp focus and in different countries. I mean, if you just take what Michael that there in Sweden, Sweden can look around and say look SaaS come out of chapter 11 much smaller.

Speaker Change: I think if you look around the competitive piece you look at some of our competitors or the likes of ECJ forgetting some aircraft, they're up gauging aircraft, but most of that is taking place at therefore this airport the gastric paris's, Switzerland, they seem to be avoiding competition with us quite sensibly and equally I would said with same thing.

Speaker Change: And then it was.

Speaker Change: Before we went in.

Speaker Change: Norwegian Havent really grown.

Speaker Change: Buying aircraft, that's ludicrous prices their cost of aircraft ownership maintenance goes up the more aircraft I guess.

Speaker Change: And then if they want to have connectivity they look around and say what are we going to do in Ryanair is essentially the only show in town to actually move the dial and increasingly we're able to move the dial even with that reduced capacity places like Morocco, where we've grown by almost 20%, Italy, whereas that.

Speaker Change: But most of that capacity seems to be deployed into the stands the middle East.

Speaker Change: We see no capacity growth in any of the markets, where we're still growing capacity meaningfully Poland, Romania, Bulgaria, Hungary, and down to the Balkans, where we are expanding quite significantly a lot of it in markets, where they were previously the main carrier Albania in Toronto for example, we're growing strongly.

Speaker Change: That growth is going into those airports, where the municipal taxes.

Speaker Change: Those regions airports know that there is no other.

Speaker Change: Yes.

Speaker Change: Carrier.

Speaker Change: That can actually solve the problem that they have for making a capacity shortfalls post COVID-19. It just comes into sharper focus.

Speaker Change: Obviously, they're kind of growth is constrained by the Airbus engine.

Speaker Change: I think if you look around the competitive piece you look at some of our competitors or the likes of easy jet forgetting some aircraft, they're up gauging aircraft, but most of that is taking place at therefore this airport the gastric paris's, Switzerland, they seem to be avoiding competition with us quite sensibly and equally I would said with same thing.

Speaker Change: Repairs.

Speaker Change: But.

Speaker Change: We see very differently from them for all their talk about competing with us theyre in retrieving it speed LTV easily.

Speaker Change: They have retreated to speed out of Vienna, we barely notice, though I'm not even sure whether nbn anymore, but nobody has been and is her knows whether theyre not either.

Speaker Change: Buying aircraft, that's ludicrous prices their cost of aircraft ownership maintenance goes up the more aircraft I guess.

Speaker Change: And Meanwhile, we are continuing to grow strongly in all of those mark to market. So if you look at what are we looking at outlook for capacity. We're constrained this year, which is disappointment because I think if we could get more aircraft, we will take enormous amounts of further market share.

Speaker Change: But most of that capacity seems to be deployed into the stands the middle East.

Speaker Change: From incumbents.

Speaker Change: We look to Lufthansa acquiring lift.

Speaker Change: We think that would mean is doing more feeder service into Frankfurt and Munich, but will create more opportunities for us to grow in domestic easily.

Speaker Change: And I think if the AAP.

Speaker Change: Consolidation takes place again.

Speaker Change: And.

Speaker Change: A large German in Portugal, and we would be a direct beneficiary of one of the high cost our heightened cost airlines or fans or air France, KLM <unk> acquiring was left EAP in Lisbon.

Speaker Change: Obviously, they're kind of growth is constrained by the Airbus engine.

Speaker Change: Repairs.

Speaker Change: But.

Speaker Change: We see very differently from them for all their talk about competing with us theyre in retrieving our speed LTV easily.

Speaker Change: Next question please.

Speaker Change: They have retreated to speed out of Vienna, we barely doses.

Jamie: Next question comes from Jamie.

Speaker Change: So whether nbn anymore, but nobody has been and is her knows whether theyre not either.

Speaker Change: Okay from Deutsche Bank.

Speaker Change: Good morning, Michael.

Speaker Change: First one I'm afraid out just on a carryon on this capacity point.

Speaker Change: Yes summit. Despite all the challenges you grew your seats about 9%.

I think some of your competitors many of them grew at four to five there were one or two smaller ones that grew even faster. So the schedule suggests system capacity last summer was up mid single digits and if we then turn to this somewhat clearly youre now looking at three ish percent and I take your point on with 'twenty, one being rather exceptional but theres others around.

Speaker Change: From incumbents.

Speaker Change: We look to Lufthansa acquiring lift.

Speaker Change: We think that would mean is doing more feeder service into Frankfurt and Munich, but will create more opportunities for us to grow in domestic easily.

Speaker Change: And I think if the AAP.

Speaker Change: Two at 9% Norwegian at 5%, even adjusting votes for further aircraft and engine issues. It feels to me like that can be a reasonable basis.

Speaker Change: Consolidation takes place again.

Speaker Change: A large German in Portugal, and we would be a direct beneficiary of one of the high cost our heightened cost airlines those fans are air France, KLM <unk> acquiring was left at AAP in Lisbon.

Speaker Change: Seek growth at the time when the demand growth is surely resuming its more normal relationships with the macro like one and a half to two times a modest euro area GDP. So I just wanted to challenge one more time, because they thought the era of such constrained supply.

Speaker Change: Next question please.

Jamie: Next question comes from Jamie.

Speaker Change: Okay from Deutsche Bank.

And then secondly, what's going to invite you to again comment on the unit costs.

Speaker Change: Good morning, Michael.

Speaker Change: First one I'm afraid.

Speaker Change: Flattish in the quarter, but obviously fuel down 12, non fuel up eight you mentioned some of the things driving that.

Speaker Change: Carryon on this capacity point.

Speaker Change: Yes summit. Despite all the challenges you grew your seats about 9%.

Speaker Change: I think some of your competitors many of them grew at four to five there were one or two smaller ones that grew even faster. So the schedule suggests system capacity last summer was up mid single digits and if we then turn to this somewhat clearly youre now looking at three ish percent and I take your point on with 'twenty, one being rather exceptional but theres others around.

Speaker Change: The productivity issues and a few others could you just.

Speaker Change: Touch on those again and maybe help us understand when.

Speaker Change: Non fuel cost inflation might slow a bit for <unk>.

Speaker Change: Thanks.

Speaker Change: Okay and my part of the second one I'll give the unit costs on Neal's comment on unit costs, and maybe Tracy who's here would be available it might add on that can I just touch on the capacity growth.

Speaker Change: Two at 90% Norwegian at 5%, even adjusting votes for further aircraft and engine issues. It feels to me like that can be a reasonable basis.

Speaker Change: Again, I think sometimes with greater respect you guys get a bit overly focused on where the capacity growth is.

Speaker Change: I think what's happening is there are some additions to capacity, but <unk>, mostly their capacity growth is up gauging aircraft and is not competing with us is up gauging aircraft, replacing $390 to $3 20 to $3 91 in Paris in Switzerland and in.

Speaker Change: Seek growth at the time when the demand growth is surely resuming its more normal relationship with the macro like one and a half to two times a modest euro area GDP. So I just wanted to challenge one more time, because they thought the era of such constrained supply.

Speaker Change: Kathleen.

Speaker Change: We don't see it already we don't notice it.

Speaker Change: And then secondly, what's going to invite you to again comment on the unit costs.

Speaker Change: If you take <unk> for example, yes, there is some modest increase in capacity, but it's largely on UK regionals to holiday hotspot package holiday stuff going to the canaries.

Speaker Change: Flattish in the quarter, but obviously fueled down 12 non fuel up eight you mentioned some of the things driving that.

Speaker Change: The productivity issues and a few others could you just.

Speaker Change: It's a real but frankly, we are seeing increased demand, particularly having repair the otas.

Speaker Change: Touch on those again and maybe help us understand when.

Speaker Change: I think we did lose a slug of that been since last year that went to the tour operators and I think it's clearly coming back to us this year because ultimately.

Speaker Change: Non fuel cost inflation might slow a bit.

Speaker Change: Thanks.

Speaker Change: Okay and my part of the second one I'll give the unit costs on Neal's comment on unit costs, and maybe Tracy who see would be available it might add on that can I just touch on the capacity growth.

Speaker Change: Combination of Brian are the OTT, we have lower seat lower seats, and therefore more competitive package, we would like to get to but across European piece. If you look at areas that where are we allocating our growth this year.

Speaker Change: Again, I think sometimes with great respect you guys get a bit overly focused on where the capacity growth is.

Speaker Change: I think what's happening is there are some additions to capacity, but <unk>, mostly their capacity growth is up gauging aircraft and is not competing with US is up gauging aircraft, replacing $319 three <unk> to $3 91 in Paris in Switzerland and in.

Speaker Change: In Sweden, we don't notice Norwegian it all up there if they're adding any capacity in Nova in Norway, We don't notice.

Speaker Change: Italy.

Speaker Change: We're seeing regionally.

Speaker Change: Three of the biggest reach the polishing municipal tax.

Speaker Change: Green, Okay over minutely at Wichita marketplace, again, theres, not adding any capacity there that we can see a poland nobody's, adding any capacity in Poland. The other than Ryanair. So in every major area, where we are adding capacity. We don't see somebody is adding capacity and then we do slightly as the benefits and I would call.

Speaker Change: Kathleen.

Speaker Change: We don't see it already we don't notice it.

Speaker Change: If you take <unk> for example, yes, there is some modest increase in capacity, but it's largely on UK regionals to holiday hotspot package holiday stuff going to the canaries.

Speaker Change: It's a real but frankly, we are seeing increased demand, particularly having repair the otas.

Speaker Change: <unk> again this year wed keep comment we have a kind of a weaker prior year comp this year because of the OTA.

Speaker Change: I think we did lose a slug of that business last year that went to the tour operators and I think it's clearly coming back to us this year because ultimately.

Speaker Change: We were one of the few airlines last year, so with that fares down 8% in the nine months. So we have an easier prior year comp, partly because of the otas and partly because we couldnt really identify where the weakness was in consumer spending last year, whereas competitors like <unk>.

Speaker Change: Combination of Brian are the OTT, we have lower seat lower seats, and therefore more competitive package, we'd like to get to but across European piece. If you look at Andy is that where are we allocating our growth this year.

Speaker Change: <unk> for example, their fares were flat last year, but theyre capacity was essentially flat Jed.

Speaker Change: In Sweden, we don't know if its Norwegian it all up there if they're adding any capacity in Norway in Norway, We don't notice.

Speaker Change: <unk> had payers up but again I think that was part of the benefit of our sending the Oda Oda traffic go into them from us.

Speaker Change: Italy.

Speaker Change: I don't argue I don't dispute that there may be.

Speaker Change: We're seeing regionally.

Speaker Change: Three of the biggest reach the polishing municipal tax.

Speaker Change: A modest increase in capacity across the piece, but that capacity doesn't appear to be getting added into markets, where ryanair is either very large or growing in those markets.

Speaker Change: Green, Okay over minutely at Wichita marketplace, again, theres, not adding any capacity there that we can see a poland nobody is adding any capacity in Poland. The other than Ryanair. So in every area, where we are adding capacity. We don't see somebody is adding capacity and then we do slightly as the benefits and I would call.

Speaker Change: And so.

Speaker Change: We would still believe again that we're entering into a reasonably benign period, where the outlook for traffic growth is constrained at three maybe in three year at 3%.

Speaker Change: Again, this year, where I keep going back we have a kind of a weaker prior year comp this year because of the OTA.

Speaker Change: At this point in time, the pricing looks reasonably benign I mean, if you look at Q3, we expect Q3 pricing will be downward percent, we were up 1%.

Speaker Change: It's not the world isn't going to stop turning but it's modestly better than we had expected and I would hope that the rest is someone would continue like that and you want to add a third from capacity growth and a lot of this capacity, sometimes while its planned by competitors Enzo falling away I mean like best estimates you'd see that the European Commission.

Speaker Change: <unk> for example, their fares were flat last year, but theyre capacity was essentially flat at jet.

Speaker Change: <unk> had payers up but again I think that was part of the benefit of our sending the Oda Oda traffic go into them from us.

Speaker Change: Europe.

Speaker Change: I don't argue I don't dispute that there may be.

Speaker Change: Slightly maybe.

Speaker Change: 102% of what it was.

Speaker Change: A modest increase in capacity across the piece, but that capacity doesn't appear to be getting added into markets, where ryanair is either very large or growing in those markets.

Speaker Change: And pre Covid.

Speaker Change: It's Adam.

Speaker Change: I would echo what Michael says you don't see it like when we grow by 20%.

Speaker Change: And so.

Speaker Change: Races like Morocco.

Speaker Change: We would still believe and again that we're entering into a reasonably benign period, where the outlook for traffic growth is constrained at three maybe in three year at 3%.

Speaker Change: It's an open piece there, it's the same like Anthony and its ability to absorb.

Speaker Change: Capacity.

Speaker Change: It goes on along with a 65 million passengers.

Speaker Change: In Italy.

Speaker Change: At this point in time, the pricing looks reasonably benign I mean, if you look at Q3, we expect Q3 pricing will be downward percent, we were up 1%.

Look at our largest market and we're able to do that in the regions, where nobody else is for that look like.

Alright.

On domestic wins have six routes there we have a 123 domestic routes.

Speaker Change: It's not the world isn't going to stop turning but it's modestly better than we had expected and I would hope that the rest is someone would continue like that and you want to add a third from capacity growth and a lot of this capacity, sometimes what is planned by competitors Enzo falling away I mean like best estimates you'd see let's say a year.

Speaker Change: We're trying to leverage that base network them there.

Speaker Change: Just gives us gives us more options.

Speaker Change: We don't see those large moving parts from from from other Airlines look at easy jet have gone into the laughing.

Speaker Change: European capacity.

Speaker Change: While we have the two larger airports. They are in terms of <unk>. So we're not seeing it in that.

Speaker Change: Slightly maybe.

Speaker Change: 102% of what it was.

Speaker Change: And pre Covid so.

Speaker Change: It's not playing out that way in individual markets.

Speaker Change: It's Adam.

Speaker Change: Okay do you want to touch on unit costs, and I'll ask Tracy to come in here as well.

Speaker Change: I would echo what Michael says you don't see it like when we grow by 20%.

Speaker Change: Sure.

Speaker Change: Jamie on everybody else first and foremost I would reference you to the MD&A, which does a pretty good job and going line by line on the unit costs, but in the quarter itself. We're very pleased with where we finished up down 1% on total unit costs fuel offsetting a lot of the headwinds that we've been calling out since the start.

Speaker Change: Places like Morocco.

Speaker Change: It's an open piece there, it's the same like Anthony and its ability to absorb.

Capacity.

Speaker Change: It goes on and on we do 65 million passengers.

Speaker Change: In Italy.

Speaker Change: Look at our largest market and we're able to do that in the regions, where nobody else is for that look like.

Speaker Change: For the year the likes of the the extra crewing ratios to Boeing delivery delays the productivity pay increases that we implemented at the back end of last year coming true this year and driving some labor inflation in the business, we've Turkey six extra aircrafts in the fleece, 9% more.

Alright.

Speaker Change: On domestic wins have six routes there we have a 123 domestic routes.

Speaker Change: We're trying to leverage that base network them there.

Speaker Change: Just gives us gives us more options.

Speaker Change: We don't see those large moving parts from from from other Airlines look at easy jet have gone into the laughing.

Speaker Change: Sectors.

Speaker Change: And traffic driving some of the other movements.

Speaker Change: While we have the two larger airports. They are in terms of Bergamo in my opinion, and so we're not seeing it in that.

Speaker Change: A number of the other line items on maintenance.

Speaker Change: Because we haven't got the game changers in the volumes that we would've expected putting more cycles of some of the older aircrafts and driving that up a little bit of FX adverse in the quarter, but that's offset by a positive foreign currency.

Speaker Change: It's not playing out that way in individual markets.

Speaker Change: Okay do you want to touch on unit costs, and I'll ask Tracy to come in here as well.

Speaker Change: Sure.

Speaker Change: Impact below the line and then on the marketing distribution and other we've got a one off legal charge that we've taken in the quarter. So overall very pleased with how they are the unit costs have gone broadly flat on a full year basis and some of those headwinds will start to dissipate into next year, we hope to be nowhere near as highly over.

Speaker Change: For the year the likes of the the extra crewing ratios to Boeing delivery delays the productivity pay increases that we implemented at the back end of last year coming true this year and driving some labor inflation in the business, we have Turkey, six extra aircrafts in the fleece, 9% more.

Crude as we were this year with the aircrafts coming in from.

Speaker Change: From Boeing and the planning that we've put in place will have lapped the productivity pay increases into next year as well route charges have gone up they've gone up for everybody.

Speaker Change: C ground handling that kind of stuff is still going up a bit, but eddie and set a commercial team doing a good job on airports, but we're going through our budgets at the moment, we need to see what the impact of the slower growth will have on the numbers and realistically we will give more color on unit costs when we come out in May.

Speaker Change: Sectors.

Speaker Change: And traffic driving some of the movements.

Speaker Change: A number of the other line items on maintenance.

Speaker Change: Tracy annual non renewal, yes, we're supposed to be getting behind them, all which has gone through the David's labor inflation, which is probably going into a lot of them had a bit of an impact on that maintenance line as well and again the strength that we're seeing on the dollar at the moment is having some impact on maintenance.

Speaker Change: More or less.

Speaker Change: And then the biggest one liquid probably stay to continue for next year is again increased on real charges again, which unfortunately is linked to an improvement in ATC performance for it and Thats going to continue we've already seen the charges have been published last night.

Speaker Change: Crude as we were this year with the aircraft coming in from.

Speaker Change: From Boeing and the planning that we've put in place we have locked the productivity pay increases into next year as well route charges have gone up they've gone up for everybody.

Speaker Change: 25 calendar and we're seeing an increase again in that but other than that as Nick said, we are with you and to put it at the moment and going to the leach cost line in detail.

Speaker Change: And I also just on unit cost there are upsides, we're now head, who said, we're 75% hedged into FY 'twenty six to $77 a barrel.

Speaker Change: $2, a barrel saving over where we were this year.

Speaker Change: All the indications are the Trump administration will encourage more certainly U S oil production.

Speaker Change: Tracy hanging on that yes, the biggest thing behind them, all which has gone through the David's labor inflation, which is probably going into a lot of them had a bit of an impact on that maintenance line as well and again the strength that we're seeing at the moment is having some impact on maintenance.

Speaker Change: We could see further falls in fuel in order to save which would benefit all airlines.

Speaker Change: Across the piece I think if you look at our cost Theyre running marginally ahead of the 9% growth in traffic.

Speaker Change: For the nine months period, but only very modestly I think it's another exceptional cost performance in a year, where at the start of the year, we were facing into significant potential inflation. Both in airport staff and route charges and I think we'll continue to demonstrate we manage cost better than any other airline in Europe uncertainty at below that.

Speaker Change: That's it.

Speaker Change: And then the biggest one liquid probably stay to continue for next year is again increased on real charges again, which unfortunately is linked to an improvement in ATC performance put in that's going to continue we've already seen the charges have been published last night.

Speaker Change: 25 calendar and we're seeing an increase again in that but other than that as Nick said, we are with you and to put it at the moment and going to the leach cost line in detail.

Speaker Change: And if you look at the net finance, we will be debt free in the next 18 months, where most of our competitors have a significant amount of either debt or finance lease finance lease expenditure and we are looking I think in the medium term and higher interest rates and significantly higher lease rentals, whereas we own the fleet it will be.

Speaker Change: And I also just on unit costs. There are upsides, we're now heads who said, we're 75% hedged into FY 'twenty six to $77 a barrel, that's a $2 a barrel saving over where we were this year.

Speaker Change: Sure.

Speaker Change: On encumbered.

Speaker Change: All the indications are the Trump administration will encourage more certainly U S oil production.

Speaker Change: And we will be debt free in the next 18 months, which will drive an enormous.

Speaker Change: Difference or what further widened the gap between us and our competitors.

Speaker Change: And we could see further falls in fuel and oil, which would benefit all airlines across the piece I think if you look at our cost Theyre running marginally ahead of the 9% growth in traffic.

Speaker Change: Thanks, Jamie next question please.

Jarrod Castle: The next question comes from Jarrod Castle from UBS.

Speaker Change: For the nine month period, but only very marginally I think it's another exceptional cost performance in a year, where at the start of the year, we were facing into significant potential inflation. Both in airport staff and route charges and I think we'll continue to demonstrate we manage cost better than any other airline in Europe and certainly at below.

Jarrod Castle: Hi, good morning, everyone.

Jarrod Castle: You touched on President Trump I don't want to get too much into things, but obviously, you've made a lot of commentary about the environment.

Jarrod Castle: I guess the airline industry has got a very big ramp up.

Jarrod Castle: In terms of what they face how do you think if anything it's going to have an impact.

Jarrod Castle: For Ryanair and shortfalls.

Speaker Change: And if you look at the net finance, we will be debt free in the next 18 months, where most of our competitors have a significant amount of either debt.

Jarrod Castle: Or for the industry as a whole.

Jarrod Castle: Given potentially what it means for American aviation.

Jarrod Castle: And then secondly, just.

Speaker Change: Sure.

Speaker Change: Finance lease finance lease expenditure and we're looking I think in the medium term and higher interest rates and significantly higher lease rentals, whereas we own the fleet it will be.

Jarrod Castle: Just any thoughts on kind of other areas of accelerators that you may or may not be pushing into summer 2025, I thought that would be very useful. Thanks.

Jarrod Castle: Okay.

Speaker Change: On encumbered.

Speaker Change: Look we're all kind of.

Speaker Change: And we will be debt free in the next 18 months, which will drive an enormous differ.

Jarrod Castle: Waiting to see what Trump will do.

Jarrod Castle: The more immediate ones is I think he certainly right in terms of increasing oil production driving down oil prices would have I mean, there is if you want to kind of fixed Ukraine wore in Ukraine drive oil prices down.

Speaker Change: Different or further widened the gap between us and our competitors.

Jamie: Thanks, Jamie next question please.

Speaker Change: The next question comes from Jarrod Castle from UBS.

Jamie: Baird.

Jarrod Castle: We will bring <unk> to the negotiating table faster.

Speaker Change: Hi, good morning, everyone.

Speaker Change: You touched on President Trump I don't want to get too much into things, but obviously, you've made a lot of commentary about the environment.

Jarrod Castle: I think there is a lot of concerned about trade and.

Jarrod Castle: The trade issues.

Jarrod Castle: Ireland and Europe has a significant car to play in the form of Ryanair. We are the biggest customer for Boeing we buy American manufactured aircraft, we have over $35 billion worth of orders per American manufactured aircraft.

Speaker Change: I guess the airline industry has got a very big ramp up.

Speaker Change: In terms of what they face how do you think if anything it's going to have an impact.

Speaker Change: For Ryanair and short haul.

For the industry as a whole.

Jarrod Castle: And I think we therefore would be a key calling card for the Irish government and their trade discussions with.

Speaker Change: Given potentially what it means for American aviation.

Speaker Change: And then secondly, I'm just.

U S nobody buys more aircrafts.

Speaker Change: Just any thoughts on kind of other areas of accelerators that you may or may not be pushing into summer 2025, I thought that would be very useful. Thanks.

Jarrod Castle: Our American made aircraft in Ryanair dose and we operate here in Europe with a fleet of American made Boeing 737.

Speaker Change: Okay I'll do the first that look we're all kind of.

Jarrod Castle: I think we're able to show that we can meet and beat a lot of our Airbus competitors.

Speaker Change: Waiting to see what Trump will do.

Jarrod Castle:

Speaker Change: I think the more immediate ones is I think he certainly right in terms of increasing oil production driving down oil prices would have I mean, there is if you want to kind of fixed Ukraine wore in Ukraine drive oil prices down.

Jarrod Castle: If there is a an early.

Jarrod Castle: At peace dividend in the Middle East are in Ukraine that would clearly be welcome. We do expect to go back flying to Tel Aviv on the when they reopened the low cost terminal of the at the end of March for the summer schedule, we would be very supportive of anything that brings about a certainly a cease fire or some sort of enduring peace and reopened.

Speaker Change: We will bring <unk> to the negotiating table faster.

Speaker Change: I think there is a lot of concerned about trade and.

Speaker Change: The trade issues.

Speaker Change: Ireland and Europe has significant car to play in the form of Ryanair. We are the biggest customer for Boeing we buy American manufactured aircraft, we have over $35 billion worth of orders for American manufactured aircraft.

Jarrod Castle: This guy's over Ukraine, we will be the first airline back into Ukraine, when it does reopen.

We're the largest here and one of the larger in Ukraine, but prior to the erosion invasion and we would look to go back there. So.

Speaker Change: And I think we therefore will be a key calling card for the Irish government and their trade discussions with.

I would think net Nash who knows.

Jarrod Castle: But if Tom could bring down our increased oil production and drive down oil prices certainly that would be good for the world economy in general It would certainly be good for air travel and it would certainly be good for tourism and economic growth across.

Speaker Change: U S nobody buys more aircrafts.

Speaker Change: Our American made aircraft than Ryanair dose when we operate here in Europe with a fleet of American made Boeing 737.

Speaker Change: I think we're able to show that we can meet and beat a lot of our Airbus competitors.

Jarrod Castle: Europe, although maybe not in the UK, where regional or even find some new way to raise fucking taxes on air travel.

Speaker Change:

Speaker Change: If there is a an early.

Speaker Change: Peace dividend in the Middle East are in Ukraine that would clearly be welcome. We do expect to go back flying to Tel Aviv on the <unk> when they reopened a low cost terminal of the at the end of March for the summer schedule.

Speaker Change: Ravishing on about a new road, we'd Heathrow in about 50 years.

Andy: Andy you want touch on ancillary.

Andy: I don't think youre going to see anything major from new initiatives, but I think we're just getting better with the cards that we have and if you look at the core and salaries.

Speaker Change: Would be very supportive of anything that brings about a start to the a cease fire or some sort of enduring peace and reopened the disguise over Ukraine, we will be the first airline back into Ukraine, when it does reopen.

Andy: And related to flight bag priority of seats plus.

Andy: We're seeing there is.

Andy: Better applications by labs here in integrating.

Speaker Change: We're the largest here and one of the larger in Ukraine.

Andy: Those decisions by consumers.

Speaker Change: Here too the erosion invasion, and we would look to go back there so.

Andy: The models are Jos are getting better at that.

I would think net Nash who knows.

Andy: And we're learning all the time, particularly on them, particularly on seats switches.

Speaker Change: But if from could bring down our increased oil production and drive down oil prices certainly that would be good for the world economy in general It would certainly be good for air travel and it would certainly be good for tourism and economic growth across.

Andy: Relatively new.

Andy: The evolution of ancillary so I think youre going to see.

Andy: You're going to see more improvement there and then ultimately.

Andy: Not in the near term, where you'll see that that model.

Speaker Change: Europe, although maybe not in the UK with a ratio or even find some new way to raise fucking taxes on air travel.

Andy: Morphing into total revenue and getting it where we got a fixed schedule revenue for us.

Andy: In terms of that dynamic pricing before we attempt to integrate it all together and then youre looking at onboard spend.

Speaker Change: Ravishing on about a new road, we'd Heathrow in about 50 years.

Speaker Change: And if you can touch on ancillary.

Speaker Change: Yes.

Andy: Sure.

Speaker Change: I think youre going to see anything major from new initiatives, but I think we're just getting better with the cards that we have and if you look at the core and salaries.

Andy: That new initiative again developed here by labs of order to Steve is no.

Andy: Well over 10% now of people ordering directly in the average transaction value is higher and I think we're going to see youll see a tipping point at some stage I don't know, whether thats going to be a 20 or 30% whereby people will see that they can just order directly from <unk> rather than waiting for the equivalent of somebody at a retail environment.

Speaker Change: And related to flight a priority of seats plus.

Speaker Change: We're seeing there is.

Speaker Change: Better applications by labs here in integrating.

Speaker Change: Those decisions by consumers.

The models are Jos are getting better at that.

Andy: Serving the shelves around the consumer other than the consumer ordering directly to their seats. So lot of work going on labs are behind this and.

Speaker Change: And we're learning all the time, particularly on them, particularly on seats switches.

Speaker Change: Relatively new.

Speaker Change: The evolution of ancillary so I think you're going to see.

Andy: Nothing spectacular, but it's a slow plodding way to get through to finish those models I think your first day labs has made dramatic gay.

Speaker Change: You're going to see more improvement there and then ultimately.

Speaker Change: It's not in the near term, where you'll see that that model.

Andy: Gains in the last quarter, we've now rolled out our operating that the in house operating system.

Speaker Change: Morphing into total revenue and getting it where we got a fixed schedule revenue for us.

Speaker Change: In terms of dynamic pricing before we attempt to integrate it all together and then you are looking at onboard spend.

Andy: Which was designed by labs. It has now taken over running the operations in more so volta.

Andy: Dublin here, we're looking to go.

Speaker Change: Sure.

Speaker Change: That new initiative again developed here by labs of order to Steve is no.

Andy: 100%.

Speaker Change: Automated boarding pass this year in advance of the summer that will give us much more kind of tactile communications with all of our passengers to be able to.

Speaker Change: Well over 10% now of people ordering directly in the average transaction value is higher and I think we're going to see youll see a tipping point at some stage I don't know whether thats, what we have 20 or 30% whereby people will see that they can just order directly from <unk> rather than waiting for the equivalent of somebody at a retail environment.

Andy: Oster incentivize them hopefully.

Speaker Change: To improve conversion so labs continues to make a very meaningful difference.

Speaker Change: I don't think we are very close to a long term agreement with our <unk> two on the.

Speaker Change: Shifting the shelves around the consumer other than the consumer ordering directly to their seats. So lot of work going on labs are behind this and.

Speaker Change: Booking engine, which will take us will extend our agree with them out into 2000 32034.

Speaker Change: But large growth of working over the medium term on a long term in house.

Speaker Change: Nothing spectacular, but it's a slow plodding way to get through to finish those model I think it's fair to say labs have made dramatic.

Speaker Change: Bookings engine ourselves, where if we want to we can replace an avatar at any.

Speaker Change: Anytime.

Speaker Change: <unk> in the last quarter.

Speaker Change: Either before trade 34 are in 2034, so labs continues to rollout enormous cost savings.

Speaker Change: We've now rolled out our operating that the in house operating system.

Speaker Change: It was designed by labs. It has now taken over running the operations in more so both.

Speaker Change: Across the across the piece.

Speaker Change: Next question. Please thanks Tara.

Speaker Change: <unk> here.

Sheila: The next question comes from Sheila <unk> from Raymond James.

Speaker Change: We're looking to go.

Speaker Change: 100%.

Speaker Change: Hi.

Speaker Change: Automated boarding passes this year in advance of the summer that will give us much more kind of tactile communications with all of our passengers to be able to.

Speaker Change: Hey, good morning, and two questions from me. Please just.

Speaker Change: I apologize if I missed this but can you talk about how youre thinking about capex given the revised outlook.

Speaker Change: Oster incentivize them hopefully.

Speaker Change: To improve conversions. So labs continues to make a very meaningful difference and I think we're very close to a long term agreement with our novelty or two on the <unk>.

Speaker Change: Deliveries.

Speaker Change: And then can I ask the.

Speaker Change: The second question in terms of kind of fifth train six I know.

Speaker Change: Fuel side, we have a lot of visibility, but could you talk about what youre expecting in terms of year over year pressure from the new SaaS requirements.

Speaker Change: Booking engine, which would take us it will extend our agree with them out into 2000 32034.

Speaker Change: The decline in ETS allowance.

Speaker Change: But large growth we're working over the medium term on a long term in house.

Speaker Change: Okay.

Speaker Change: Tracey you want to answer the Capex.

Speaker Change: Our bookings engine ourselves.

Tracey: The revised deliveries and then we took on FY 'twenty six Thomas Fowler.

Speaker Change: If we want to we can replace an avatar at any time.

Speaker Change: Brief us on the FY 'twenty six.

Speaker Change: Either before trade 34 are in 2034, so labs continues to rollout enormous cost savings.

So some of the Capex guidance for this year will come down on the basis that some of the aircraft are delivered into next year.

Speaker Change: Across the across the piece.

Speaker Change: We'll be at about one 7% one eight for this year and probably looking at about finer being FY <unk> FY 'twenty five and <unk> 26 based on what we're seeing but again caution that the projects have been done at the moment, we disclose capex of about $1 seven kids the aircraft going into next year, but we'll finalize that as we close out the budget is now.

Speaker Change: Next question. Please thanks Terry.

Speaker Change: The next question comes from Giovanni <unk> from Raymond James.

Speaker Change: Hi.

Speaker Change: Hey, good morning, and two questions from me. Please just.

Speaker Change: I apologize if I missed this but can you talk about how youre thinking about capex given the revised outlook.

Speaker Change: Okay, and Thomas touch on impacts in FY 2016, just on FY 'twenty Zalviso, obviously, although we're losing some free Etfs allowances, we are hedged in FY 'twenty six or so.

Speaker Change: Deliveries.

Speaker Change: And then can I ask the second question in terms of kind of fifth train six I know you're on the jet fuel side, we have a lot of visibility, but could you talk about what youre expecting in terms of year over year pressure from the new SaaS requirements in the kind of the decline in EPS alone.

Speaker Change: Just under 70% hedged at 61 euros per carbon credit versus $76 per ton volume, we do have the 2% SaaS Monday. So we expected at the moment the build range from just over $850 million in FY 'twenty to over a billion in FY 2006, with the stock mandates as well so but.

Speaker Change: Okay.

Trace: Trace you asked you on the Capex.

The revised deliveries and then we took on FY 'twenty six Thomas Fowler.

Trace: Brief us on the FY 'twenty six.

Speaker Change: So that's where our working assumption at the moment.

Trace: So some of our Capex and our.

Okay. Thanks, so much thanks, David next question. Please.

Trace: Guidance for this year will come down on the basis that some of the aircraft are delivered into next year.

Speaker Change: The next question comes from <unk> <unk>.

Trace: Probably be at about one seven to one eight for this year and probably looking at about China being FY <unk> FY 'twenty and for FY 'twenty based on what we're seeing but again caution that the projects are being done at the moment with a capex of about 1.7 kids. The aircraft building into next year, but we'll finalize that as we close out the budget is.

Ronnie: Ronnie from Bofa.

Ronnie: Hi, good morning, Firstly, just on compensation. So you'll have some compensation you said modest this year can you explain to US. How this works is that compensation for deliveries right now and kind of just trying to get a sense of would you continue to get compensation in FY 'twenty six given the.

Trace: Yes.

Trace: Okay, and Thomas touch on impact in FY 'twenty. So you can just on FY 'twenty to Savi. So obviously, although we're losing some free Etfs allowances, we are hedged in FY 'twenty six hour, we're hedged just under 70% hedged at 61 euros per carbon credit versus $76 per ton volume, we do have the 2% staff Monday, So we expect.

Ronnie: Livery delays that you talked about.

Ronnie: And then secondly, just on FES like what have you seen in that trend in January February kind of.

Ronnie: This trend continued from Chris.

Ronnie: Christmas because the Easter impact is just March so just trying to understand the current trend. Thank you.

Trace: At the moment to build right.

Trace: Just over $850 million in FY 'twenty to over a billion in FY 2006, with the stock mandates as well, so that's where our working assumption at the moment.

Speaker Change: Thanks <unk> okay.

Speaker Change: Touching on the Boeing I think it's a bit.

Speaker Change: It's been unfortunate we have to describe it is some things that we call our compensation, what we're really getting for Boeing and it's in response to.

David: Okay. Thanks, so much thanks, David next question. Please.

APAC Jani: The next question comes from an APAC Jani from Bofa.

Speaker Change: <unk> delayed delivery delays of the aircraft, we're getting some credit memos, which we can apply against the goods and services, we buy from them on an ongoing basis the numbers are small.

APAC Jani: Hi, good morning, Firstly, just on compensation. So you had some compensation you said modest at this yet.

Speaker Change: It is not meaningful or significant.

APAC Jani: Explain to US how this works is that compensation for deliveries right now and kind of just trying to get a sense of would you continue to get compensation in FY 'twenty six given the delivery delays that you've talked about.

Speaker Change: And I owe them new compensation is there is probably the wrong word to use but we're just getting negotiating some credit member Boeing has given us some break.

Speaker Change: Yeah.

Speaker Change: I think they are embarrassed by the delivery delays there now delayed over the previous two we're now getting further delays on what had previously been agreed as delayed delivery. The 'twenty nine aircraft that we would get in advance of March 26 should originally have been delivered in advance of March 25.

APAC Jani: And then.

APAC Jani: Lee just on FES like what have you seen in that trend in January February kind of has this trend continued from Chris.

APAC Jani: Christmas because the Easter impact is just March so just trying to understand the current trend. Thank you.

Speaker Change: So we are getting a small amount of <unk>.

APAC Jani: Thanks <unk> okay.

Speaker Change: Credit memo.

Speaker Change: <unk> been around the credit notes against good service, we would expect to get a similar something similar again next year and then hopefully there'll be no more after that we don't want as I keep saying to Boeing I don't want to compensation I want my aircrafts I would make much more money if Boeing delivered me.

APAC Jani: Touching on the Boeing I think it's a bit.

APAC Jani: It's been unfortunate we have to describe it is something that we call a compensation, what we're really getting for Boeing and it's in response to repeated delay delivery delays of the aircraft, we're getting some credit memos, which we can apply against the goods and services, we buy for them on an ongoing basis the numbers are small.

Speaker Change: The addition of 20 odd aircraft that we were supposed to get for summer of 'twenty 'twenty. Four we would have done this year close to 210 million passengers that we would have.

APAC Jani: It is not meaningful or significant.

Speaker Change: It would have we would have made much more than the very small.

APAC Jani: And I owe them compensation is there is probably the wrong word to use but we're just getting negotiating some credit member Boeing are giving us some breaks.

Speaker Change: Mid.

Speaker Change: Global mid double digits.

You update those credit memorandum.

APAC Jani: Yeah.

APAC Jani: I think they are embarrassed by the delivery delays there now delayed over the previous day.

Speaker Change: We would expect to get something again next year, but again, it's very small and it's a distraction.

APAC Jani: We're now getting further delays on what had previously been agreed as delayed delivery. The 'twenty nine aircraft that we would get in advance of March 26th should originally have been delivered in advance of March 25.

Speaker Change: Sooner, we can get the aircraft in a constrained market in Europe. The more we can kind of deploy them. The more we can take towards that market share and we will hold onto it.

Speaker Change: Over the longer term.

APAC Jani: So we are getting a small amount of <unk>.

Speaker Change: Q4.

Speaker Change: Prices in January are modestly up.

APAC Jani: Credit <unk>.

APAC Jani: <unk> been around credit notes against good service, we would expect to get a similar something similar again next year and then hopefully there'll be no more after that we don't want that keeps 80, Boeing I don't want to <unk>.

Speaker Change: I want to put a number on it prices in February are modestly up January was I think slightly distorted by a very strong Christmas new year period, we had lots of people booking late.

Speaker Change: And we did see so pricing in January is up slightly more than it is in February February is up but it's more modest and then March is significantly down.

APAC Jani: Compensation I want my aircrafts I would make much more money if Boeing delivered me.

APAC Jani: The addition of 20 odd aircraft that we were supposed to get for summer of <unk> 'twenty. Four we would have done this year close to 210 million passengers and we would have.

Speaker Change: And so it really just had to get into a month by month granular April is significantly up but and we have two little visibility for May June and July at this stage.

APAC Jani: It would have we would have made much more than the very small.

Speaker Change: It's much more helpful to look at it in a kind of a key.

APAC Jani: Mid <unk>.

APAC Jani: Global mid double digit.

Speaker Change: If you take the summer of 2026 at this stage I think it's much more helpful to look at it in terms of forward bookings are running about a 1% ahead of where they were this time last year and the pricing at the moment is modestly up.

APAC Jani: You update those credits memorandum.

APAC Jani: We would expect to get something again next year, but again, it's very small and it's a distraction.

APAC Jani: We can get the aircraft in a constrained market in Europe. The more we can kind of deploy them. The more we can tell.

Speaker Change: I'm not putting any definition on modestly theres lots of analysts out there who are pricing models and they can tell you that the pricing looks strong our competitors in recent months on their commentary <unk> E jet roles, they see reasonably strong bookings into Easter and into the summer and pricing looks like it would be kind of modestly up so.

APAC Jani: He thought that market share and we will hold onto it.

APAC Jani: Over the longer term.

APAC Jani: Q4.

APAC Jani: Prices in January are modestly up.

APAC Jani: Want to put a number on it prices in February are modestly up January was I think slightly distorted by a very strong Christmas new year period, we had lots of people booking late.

Speaker Change: I will say the for the summer this year.

APAC Jani: And we did see so pricing in January is up slightly more than it is in February February is up but it's more modest and then March is significantly down.

Speaker Change: Modest cautious optimism is where we should be but we're not putting numbers on it.

Speaker Change: We have in the past trying to put numbers on it.

Speaker Change: Where the numbered proves to be wrong, and we get criticized for poor communications that every year. So we'll let you be a guest yourselves because youll get as good as mine at this stage all I can go back to his capacity as heavily constrained we're more constrained than we've ever been before in our history at just kind of 3% traffic growth for the next 12 months.

So it really just had to get into it a month by month granular April is significantly up but and we have two little visibility for May June and July at this stage.

APAC Jani: It's much more helpful to look at it in a kind of a.

APAC Jani: If you take the summer of 2026 at this stage I think it's much more helpful to look at it in terms of forward bookings are running about a 1% ahead of where they were this time last year and the pricing at the moment is modestly up.

Speaker Change: The initial pricing and forward booking numbers into the into the March quarter added to the June and September quarter look I think cautiously optimistic, but I wouldn't want to get.

APAC Jani: I'm not putting any definition on modestly theres lots of analysts out there who are pricing models and they can tell you that it goes.

Speaker Change: I would want us to any more other than that.

APAC Jani: The pricing looks strong our competitors in recent months on their commentary jet to get real estate.

Speaker Change: It all looks okay. It doesn't look it looks fine.

Speaker Change: We're much more focused here on managing the cost into some are deploying the aircraft and I think the new routes team who've done terrific work on those charter negotiations and I think there's a real kind of change in Europe. When you get Goldman Sachs, Sweden, Hungary regional easily abolishing aviation taxes. This is where the future is.

APAC Jani: Reasonably strong bookings into Easter and into the summer and pricing looks like it would be kind of modestly up so.

APAC Jani: I would say the for the summer this year.

APAC Jani: Modest cautious optimism is where we should be but we're not putting numbers on it.

APAC Jani: We have in the past trying to put numbers on it.

APAC Jani: With a number of proved to be wrong, and we get criticized for poor communications that every year. So we'll let you be a guest yourselves because youll get as good as mine at this stage all I can go back to his capacity as heavily constrained we're more constrained than we've ever been before in our history at just kind of 3% profit growth for the next 12 months and the initial.

Speaker Change: Europe is serious about being competitive competitiveness and growth.

Speaker Change: Look towards the Demanti report as Dawn reform Youre completely fucked up and failed air traffic control system in Europe.

Speaker Change: Staffer property for the first wave of flight protect overpriced during national and and the Arctic and Peter.

APAC Jani: Pricing and forward booking numbers into the into the March quarter added to the June and September quarter look I think cautiously optimistic, but I wouldn't want to get.

Speaker Change: And taxes, which we only levy on European citizens and then we exempt the most polluting long haul and non European airlines from any penalty whatsoever.

Speaker Change: So there's lots of upsides, thanks, Vinnie, but next question. Please.

APAC Jani: I would want us to any more other than that.

APAC Jani: It all looks okay. It doesn't look it looks fine.

Speaker Change: The next question comes from Alex <unk> with Bernstein Alex.

We're much more focused here on managing the costs into summer deploying the aircraft and I think the new routes team who've done terrific work on those charter negotiations and I think there is a real sign of change in Europe. When you get Goldman Sachs, Sweden, Hungary regional easily abolishing aviation taxes. This is where the future is.

Hi, Good morning, gentlemen, two for me. Please first I'd like to come back on the ancillary so you're absolutely revenue passenger is back to growing again slight year on year the previous two quarters.

Speaker Change: I see the acceleration here can you get back to that 2% to 3% growth in used to experienced across FY 'twenty FY 'twenty four.

APAC Jani: Europe is serious about being competitive competitiveness and growth.

Speaker Change: Second question, we suggestions in the UK about expanding capacity at Gatwick Airport is that interesting to you with the higher revenue opportunity or is that really too high cost.

Speaker Change: To us the Demanti report as Dawn reform Youre completely fucked up and failed air traffic control system in Europe.

Speaker Change: Staffer property for the first wave of flight protect overplays during national and and these idiotic and Peter.

Speaker Change: Okay I'll take the second one first Niagara and Eddie Doj and say look I mean, it's just PR flimflam coming out to reach the reef. They expanded capacity of cash we got a second one make havighurst hurdle, where diesel will take 2025 30 years. They are nowhere near days. Meanwhile, she's increasing apd, which is one of them.

Speaker Change: Aviation taxes, which we only levy on European citizens and then we exempt the most polluting longhaul and non European airlines from any penalty whatsoever.

Speaker Change: So there's lots of upside thanks, Vinnie, but next question. Please.

Speaker Change: Most penile and 80 Arctic aviation taxes in Europe on.

Speaker Change: The next question comes from Alex <unk> with Bernstein.

Speaker Change: An island on the periphery of Europe, They have no plan for regional growth.

Speaker Change: Alex.

Speaker Change: Absolutely nothing going on at regional growth and in fact, even if you deliver a third runway at Heathrow all it would benefit as London, if you really want to start delivering growth and particularly growth across the regions of Europe abolish apd.

Alex: Hi, Good morning, gentlemen, two for me. Please first I'd like to come back on the ancillary so youre absolutely revenue passenger is back to growing again.

Speaker Change: The previous two quarters.

Speaker Change: And I see the acceleration here can you get back to that 2% to 3% growth in used to experienced across FY 'twenty FY 'twenty four.

Speaker Change: Scrap based and you would see dramatic.

Speaker Change: Second question recent suggestions in the UK about expanding capacity at Gatwick Airport is that interesting to you with the higher revenue opportunity or is that really too high cost.

Speaker Change: <unk> and capacity at airports like Manchester Liverpool Birmingham.

Bristol, Glasgow, and Edinburgh, who have capacity to grow you don't have to wait 25 years are faced with the mayor of London or anything else and yet they havent, even got that right. So would gastric give it expand to be of interest to us it would probably be of interest to the next management or to the second probably the next two management teams.

Speaker Change: Okay I'll take the second one first Niagara It <unk> look I mean, it's just PR flimflam coming out to reach the reef they expanding capacity of cash we got a second one make avocados to curdle, where diesel will take 2025 30 years. They are nowhere near this Meanwhile, she's increasing apd, which is one of them.

Speaker Change: And ryanair because it'll be at least broke in 20 years by the time it gets here.

Speaker Change: <unk> <unk> Arctic aviation taxes in Europe.

Speaker Change: And should in Luton could be delivered more quickly.

Speaker Change: On an island on the periphery of Europe, They have no plan for regional growth.

Speaker Change: Maybe there was no mention of Stansted.

Speaker Change: And if there was a one airport and noted that you could actually expand reasonably quickly because all the required data.

Speaker Change: Absolutely nothing going on at regional growth and in fact, even if you did deliver a third runway at Heathrow, Although would benefit as London, if you really want to start delivering growth and particularly growth across the regions of Europe abolish apd.

Speaker Change: Terminal capacity expansion and it didn't even get mentioned.

Speaker Change: So I wouldnt hold out too much hope for the Labour government plans for adding roadways in the southeast of England. They have runways, all over regional U K, which could grow tomorrow.

Speaker Change: Scrap is and you would see dramatic.

Speaker Change: <unk> and capacity at airports like Manchester Liverpool Birmingham.

Speaker Change: All they have to do is to abolish that ADR Jake Apd tax.

Speaker Change: Bristol, Glasgow, and Edinburgh, who have capacity to grow you don't have to wait 25 years are faced with the mayor of London or anything else and yet you haven't even got that right. So would gastric give it expand to be of interest to us it would probably be of interest to the next management to our to the second probably the next two management teams.

Speaker Change: Eddie and salaries, yes, Alex it's very difficult to.

Speaker Change: Speculate.

Speaker Change: <unk>, just like a year or two.

Speaker Change: This is steady.

Speaker Change: Clouding as I would say because you want something that sticks model the models actually work and.

Speaker Change: The team from labs that work on this in terms of and I think what you are seeing this year is.

Speaker Change: And ryanair because it'll be at least broke in 20 years by the time it gets here.

Speaker Change: They're integrating the sort of total.

Speaker Change: And should in Luton could be delivered more quickly and I.

Speaker Change: Pricing and as I said earlier.

Speaker Change: I was amazed there was no mention of Stansted.

Speaker Change: Next iterative step on that is to put it in scheduled revenue, but scheduled revenue at somewhere to go everybody just looks at what they paid on their credit card. Each month. So yes. There is there is upside of that there is upside, particularly on board as well.

Speaker Change: And if there was a wound airports in London that you could actually expand reasonably quickly because all the required business.

Speaker Change: Terminal capacity expansion and.

Speaker Change: Didn't even get mentioned.

Speaker Change: So I wouldnt hold out too much hope for the Labour government plans for adding roadway to the southeast of England. They have runways, all over regional UK, which could grow tomorrow.

Speaker Change: I wouldn't want to speculate that we'd get back to that to get back to that level much more intense.

Speaker Change: Making is actually work and stick.

Speaker Change: Okay.

Speaker Change: Thanks Ali.

Speaker Change: For Europe for your models, you should be thinking about one to two.

Speaker Change: All they have to do is to abolish that idiotic Apd tax.

Speaker Change: And the next year or two.

Speaker Change: Eddie and salaries.

Speaker Change: Woods to on top of it. Thank you.

Alex: Alex I can very difficult to.

Speaker Change: Yeah.

Speaker Change: Speculate.

Speaker Change: Okay.

Speaker Change: Just like a year or two.

Speaker Change: Next question please.

Speaker Change: This is steady.

Speaker Change: The next question comes from Charles Huff from pawn Mirror Libra.

Speaker Change: Clouding as I would say because you want something that sticks model the models actually work and.

Speaker Change: Sure.

Speaker Change: Good morning, everyone.

Speaker Change: The team from labs that work on this in terms of and I think what you are seeing this year is.

Speaker Change: Two if I can.

Speaker Change: I was wondering if you could expand on the legal charge within March and although I think you said it was one off but it does seem to pick up presumably sheep is Bob adult I was just wondering if you could explain.

Speaker Change: They are integrating the sort of total pricing and as I said earlier.

Speaker Change: The nature of that was.

Speaker Change: What we should be assuming sort of the underlying trends for that cost slide.

Speaker Change: And secondly.

Speaker Change: I think you said that you booked to make compensation within interest income interest income interest and other income.

I wouldn't want to speculate that we'd get back to that to get back to that level much more intense.

Speaker Change: What was the presentation change from before.

Speaker Change: Making is actually work at stake.

Speaker Change: Is that because the nature of the compensation is different I think in the past we've seen some movements come through.

Speaker Change: Okay. Thank you.

Speaker Change: Thanks, Alex for your for your models, you should be thinking about one to two.

Speaker Change: So capex and then in also.

Speaker Change: And the next year or two.

Speaker Change: The vessels are all the costs.

Speaker Change: Woods to on top of it. Thank you.

Speaker Change: Okay.

Speaker Change: Yeah.

Speaker Change: Okay.

Speaker Change: <unk> commented, a small amount of compensation and the treatment at the legal charges, despite Spanish baggage fine, which in our view is complete the league in breach of EU low they've used at 1960 piece of legislation front about 15 years <unk> joins the European the European Commission to imposed in our case.

Speaker Change: Next question please.

Speaker Change: The next question comes from Charles Huff from Pioneer Libra.

Speaker Change: Sure.

Speaker Change: Yes, I'm looking at I'm, sorry, if I can.

Speaker Change: First I was wondering if you could expand on the legal charge within marketing and although I think you said it was one off but it does seem to pick up presumably sheep is Bob adult I was just wondering if you can explain.

Speaker Change: Refining of $107 million.

Speaker Change: It has no bearing in reality, we think it has no legal standing either we expect European Commission to overrule it but curious do you want to touch that.

Speaker Change: That was it.

Speaker Change: What we should be assuming on that.

Speaker Change: Boeing trends for that cost side.

Speaker Change: Detail of what the charge, we've taken and.

Speaker Change: And secondly.

Speaker Change: Your view on the baggage claim.

Speaker Change: I think you said that you booked delay compensation within interest income interest income interest and other income.

Michael Cold: Yes, Thanks, Michael.

So if you follow Spanish media you Couldnt have missed the fact that Ryanair and fiber airlines were fine in late November.

Speaker Change: What was the presentation change from before.

Speaker Change: Is that because the nature of the compensation is different I think in the past we've seen some movements come through.

Michael Cold: A total of 170 million euros.

Michael Cold: Primarily in relation to carbon baggage policy supplied by ourselves and those other airlines.

Speaker Change: Just with vessels with Capex and then in also.

Speaker Change: So the vessels of all the costs.

Michael Cold: I think that.

Speaker Change: Okay.

Michael Cold: Try not to get a motive with those things, but this fine is outrageous.

Speaker Change: Okay.

Speaker Change: With the comment that the small amount of compensation and the treatment at the legal charges, despite Spanish baggage fine, which in our view is complete the league in breach of EU low they've used at 1960 piece of legislation front about 15 years for feed EBIT joins the Europe, The European Commission to imposed in our case.

Michael Cold: A clear breach of EU law.

Michael Cold: Youll always clear on this point on.

Michael Cold: Even more so the EU court.

Michael Cold: Welling judgment about 10 years ago clarify the issues around bucket charges that can be imposed to airlines and made it clear that cabin baggage charges are local so we felt victim of.

Speaker Change: Refining of $107 million.

Speaker Change: It has no bearing in reality, we think it has no legal standing either we expect European Commission to overrule it but curious do you want to touch fab the detail of the what the charge we've taken and.

Michael Cold: Local politics in Spain with a minority partner in the in the current ruling coalition in Spain trying to essentially make a name for his party for himself.

Speaker Change: Your view on the baggage claim.

Speaker Change: Yes, Thanks, Mike.

Michael Cold: Leading with this very very big find unprecedented really so.

Speaker Change: So if you follow Spanish media you Couldnt have missed the fact that Ryanair and five other airlines were fine in late November.

Michael Cold: The issue will end up in Spanish court, and ultimately a Spanish courts do not overturned at this point it will end up in the EU Court industry J W.

Speaker Change: A total of 170 million euros.

Speaker Change: Primarily in relation to carbon package policies applied by ourselves and those other airlines.

Michael Cold: It will take probably two to three years to get this sources, but we are absolutely confident in our legal position in the meantime, however, we have to provide for.

Speaker Change: I think that.

Speaker Change: Try not to get a motive with those things, but this fine is outrageous.

Speaker Change: Half of this fine too.

Speaker Change: A clear breach of the EU law.

Speaker Change: To be shown in the accounts in the form of that legal charge and hopefully this will be reversed when we are successful with our up to you.

Speaker Change: Youll always clear on this point on.

Speaker Change: Even more so the EU court.

Speaker Change: Whaling judgment about 10 years ago clarify the issues around bucket charges that can be imposed to airlines and made it clear that carbon targets charges are local so.

Speaker Change: Okay. Thank you and Neil the treatments of <unk>.

Speaker Change: The Boeing credits the compensation in the other income I suppose just on the legal charge Gerald that's an abundance of prudence.

Speaker Change: We fell victim of.

Speaker Change: Local politics in Spain with a minority partner in the in the current ruling coalition in Spain trying to essentially make a name for his party for himself.

Speaker Change: In relation with us.

Speaker Change: On the compensation of Michael is likely in the first half of the year all of that modest compensation was in the form of goods and service credit memos.

Speaker Change: Leading with this very very big.

Speaker Change: In the quarter for us and this change slightly and that we got some cash.

Speaker Change: Unprecedented really so.

Speaker Change: The issue will end up in Spanish court, and ultimately a Spanish courts do not overturn this point it will end up.

Speaker Change: Compensation, which didn't actually face in any of the other lines. So Wednesday.

Speaker Change: According to <unk>.

Speaker Change: Finance and other income.

Speaker Change: Will take probably two to three years to get this sorted, but we're absolutely confident in our legal position in the meantime, however, we have to provide for.

Speaker Change: We would anticipate any sense that there is.

Speaker Change: Any more compensation that Scott will most likely go back into the maintenance and materials.

Speaker Change: Half of this fine too.

Speaker Change: In the form of credits.

Speaker Change: To be shown in the accounts in the form of that legal charge.

Speaker Change: Okay. Thanks, Neil Thanks, Charles next question. Please.

Speaker Change: Hopefully this will be reversed when we are successful with our up to you.

Speaker Change: The next question comes from and you allow them back.

Speaker Change: Okay. Thank you.

Speaker Change: Barclays.

Andrew: Andrew Hi.

Speaker Change: The treatment of <unk>.

Speaker Change: Oh, hi, there can.

Speaker Change: Can you just tell us where you would get the airplanes from something that ends up in Ukraine.

Speaker Change: The Boeing credits.

Speaker Change: Patients in the other income I suppose just on the legal charge Gerald that's an abundance of prudence.

Speaker Change: So you'd be able to do that and just on the otas.

Speaker Change: In relation with us.

Speaker Change: I think you say most of them are implemented and functioning well, but is to be up and running or is that one of the ones yeah. Thanks.

Speaker Change: The compensation of Michael is likely in the first half of the year all of that modest compensation was in the form of goods and service credit memos.

Speaker Change: Okay, Ukraine, Andrew we would use our existing aircraft we've aircraft based at 94 aircraft of our 94 basis across Europe.

Speaker Change: In the quarter, just and this change slightly and that we got some cash compensation.

Speaker Change: Compensation, which didn't actually face in any of the other lines. So when AMC.

And cancel some.

Speaker Change: Existing deployments of aircraft. So if you take a we would be operating within six weeks of the Sky's reopening we would be offering services back into Ukraine from Dublin, London and Brussels.

Speaker Change: Finance and other income.

Speaker Change: We would anticipate.

Speaker Change: There is.

Speaker Change: Any more compensation that Scott was most likely go back into their maintenance and materials with four in the form of credits.

Speaker Change: The land betrayed you name it will be flying there, but we would involve canceling say, we may have to take out.

Speaker Change: Okay. Thanks, Neil Thanks, Joe next question please.

Speaker Change: Something from Dublin to Morocco, or a Dublin to the Canary Islands, or a doublet somewhere.

Andrew: The next question comes from Andrew <unk> with Barclays.

Speaker Change: We've identified all of those.

Andrew: Andrew Hi.

Speaker Change: Excuse me, we think we will be operating somewhere between 15% and 20 routes back into recruit Ukraine, mostly hear that debated subject to the of those airports.

Speaker Change: Oh, hi, there can.

Speaker Change: Can you just tell us where you would get the airplanes from something that ends up in Ukraine.

Speaker Change: So you'd be able to do that and just on the otas.

Speaker Change: And we are the one year that actually has that kind of capacity because we're so big and so many of those European airport, because we have the spread and we have so many Ukrainian citizens disbursed across Europe.

Speaker Change: I think you say most of them are implemented and functioning well, but.

Speaker Change: Is to be up and running or is that one of the ones.

Speaker Change: Thanks.

Speaker Change: Okay, Ukraine, Andrew we would use our existing aircrafts, we have aircraft based at 94 aircraft of our 94 basis across Europe, we pivot and cancel some.

Speaker Change: We would be able to pivot and we think fill those aircraft pretty quickly, but it would mean a further cost to our existing capacity on existing routes elsewhere, but it would be our commitment to rebuilding Ukraine and investing heavily in Ukraine, and indeed, the reopening of the rebuilding of you great.

Speaker Change: ADR on the Otas to we are the only two we haven't yet the only two who are still overcharging their customers.

Speaker Change: But grades you name it will be flying there, but we would involve canceling say, we may have to take out.

Speaker Change: Any scale is E dreams in Spain, and booking dot com in the U S booking dot com a reasonably small.

Speaker Change: Something from Dublin to Morocco, or at Dublin to the Canary Islands, or a double digit somewhere.

Speaker Change: We've identified all of those.

Speaker Change: Overall scheme of things E dreams have.

Speaker Change: Excuse me, we think we will be operating somewhere between 15% and 20 routes back into recruit Ukraine, mostly hear that debated subject to the of those airports.

Speaker Change: Have a reasonable gain in Spain, but not across most of the rest of Europe.

The deals we have done though would account for more than 90% of all the otas and we'd be very happy.

Speaker Change: And we are the only area that actually has that kind of capacity because we're so big and so many of those European airport, because we have the spread and we have so many Ukrainian citizens disbursed across Europe.

Speaker Change: We are indifferent as to whether he dreams are booking dot com sign up but we will continue to point out in our monthly surveys and to the consumer agency that these guys continue to inflate an overcharge.

Speaker Change: There are customers for Ryanair, Ryanair and other airline airfares and for Ryanair another airline to airline services and we are astonished.

Speaker Change: The failure of the European consumer agencies.

Speaker Change: The government to take any action on this ramp.

Speaker Change: ADR on the Otas to we are the only two we haven't yet the only two who are still overcharging their customers.

Speaker Change: Uh huh.

Speaker Change: Profiteering, our scalping of suspected consumers consumers believed that they're buying product and service to these people at lowest prices on the base of some medical.

Speaker Change: If any scale is E dreams in Spain, and booking dot com in the U S booking com a reasonably small.

Speaker Change: The price of a musical price comparison, and Theyre getting fleeced and overcharged by them every time they booked all of the others, who we are now are approved otas. The Kiwis on the beach and many others are all now selling.

Speaker Change: In the overall scheme of things he dreamed hub.

Speaker Change: Or a reasonable scale in Spain, but not across most of the rest of Europe.

Speaker Change: The deals we have done though would account for more than 90% of all the otas and we'd be very happy.

Speaker Change: Selling transparently they are a direct date, we've eliminated for them the cost of screen scraping, because we give them a direct pipe into ryanair and they are able to show their customers and sell their customers Ryan air prices for airfares in Ryanair prices for.

Speaker Change: They are customers for Ryanair Ryanair and other airline airfares and for Ryanair another airline to airline services and we are astonished at the failure of the European consumer agencies.

Speaker Change: Ancillary and I think theyre seeing a significant for Copa in their own sales.

Speaker Change: With pioneer.

Speaker Change: Overreached, the most particularly well with our key Christmas into new year holiday booking period.

Speaker Change: The government to take any action on this ramp.

Speaker Change: And yet you want to add on yes, it will.

Speaker Change: Be a surprise I'd like some of the newer technology based bonds are more agile.

Speaker Change: Sure.

Speaker Change: Profiteering, our scalping of suspected consumers consumers believe that they are buying product and service to these people at lowest prices on the base of some mythical.

Speaker Change: <unk>.

Speaker Change: Like the sort of tour operator.

Speaker Change: They generally have older technology stocks. So they are a little bit more challenged in getting up to.

Speaker Change: The price of a musical price comparison, and Theyre getting fleeced and overcharged by the way every time. They book all of the others, who we are now are approved otas the Kiwis on the beach.

Speaker Change: Full speed on that what you are seeing things like with Otas note because of the stability of it.

Speaker Change: Our ability to put.

Speaker Change: Product out there they are now extending into winter breaks, which is which is good news as well.

Speaker Change: Many others are all now.

Speaker Change: Selling transparently they have a direct date, we've eliminated for them the cost of screen scraping, because we give them a direct pipe into ryanair and they are able to show their customers and their customers' Ryan air prices for airfares in Ryanair prices for.

Speaker Change: Whereas there not just concentrating on the sort of volume based in the summer so.

Speaker Change: The tour operator to lag before that's a function of their of their technology, rather than their willingness to sell.

Eddie: Thanks, Eddie Okay next question please.

Speaker Change: Ancillary and I think they are seeing a significant for copa in their own sales.

Speaker Change: The next question comes from Joe Hanesbrands.

Speaker Change: So.

Speaker Change: Johannes Hi.

Speaker Change: With pioneer.

Speaker Change: Overreached, the most particularly well with our key Christmas into new year holiday booking period.

Speaker Change: Hi, Good morning, two questions for me.

Speaker Change: First of all you mentioned earlier that.

Speaker Change: Yields next fiscal year should benefit from the reduced growth.

Speaker Change: And yet you want to add on it.

Speaker Change: It won't be a surprise I'd like some of the newer technology based bonds are more agile.

Speaker Change: Obviously, the flip side is that there is a headwind for unit costs for you.

Speaker Change: Like the sort of tour operator.

Speaker Change: Given the lower growth I think you mentioned that as well.

Speaker Change: They generally have older technologies types. So there are a little bit more challenged in getting up to.

Speaker Change: Obviously difficult to say, but in your thinking there will just be a net positive or negative.

Speaker Change: Full speed on that what you are seeing things like with Otas note because of the stability of.

Speaker Change: Profits next year any thoughts welcome I appreciate it's difficult to say.

Speaker Change: Their ability to port.

Speaker Change: Then secondly.

Speaker Change: <unk> is out there they are now extending into winter breaks, which is which is good news as well.

Speaker Change: <unk> in Frankfurt, we are now only one year away from the integration of the new terminal.

Speaker Change: Is there not just concentrating on the sort of volume based in the summer so.

Speaker Change: Which will have a low cost here.

Speaker Change: Basically that's it.

Speaker Change: The tour operator to lag before that's a function of their of their technology rather than their willingness itself.

Speaker Change: At the same time, when you will eventually demand Bailey.

Speaker Change: Yeah Alright.

Chris: Yes, Chris.

Speaker Change: Thanks, Eddie Okay next question please.

Speaker Change: Restrain my <unk> my skepticism about Frankfurt low cost permanent ask Eddie to deal with that.

Speaker Change: The next question comes from Joe Hanesbrands.

Speaker Change: So.

Speaker Change: Johannes.

Speaker Change: Look well the 3% range a growth headwind for comps this year no as long as we are able to manage the recruitment and the staffing for that kind of lower 3% rate.

Speaker Change: Hi, Good morning, two questions for me.

Speaker Change: First of all you mentioned earlier that.

Speaker Change: Yields next fiscal year should benefit from the reduced growth.

Speaker Change: Obviously, the flip side is that there is a headwind for unit costs for you.

Speaker Change: There will be some inflation this year, but most of those would be on route charges. We think the staff cost run rate will be lower than it was this year, but we're doing good work on the airport and handling charges and fuel will kick in a modest comp CV again so.

Speaker Change: Given the lower growth I think you mentioned it as well.

Speaker Change: Obviously difficult to say, but in your thinking there will just be a net positive or negative.

Speaker Change: Profits next year any thoughts welcome I appreciate it's difficult to say.

Speaker Change: Think we are in a reasonably strong our stable position on comps for the next 12 months. Thanks to fuel obviously, we are unhedged on 25% of our view, but if Trump is the effective.

Speaker Change: Then secondly.

Speaker Change: Here in Frankfurt, we are now only one year away from the integration of the new terminal.

Speaker Change: Getting.

Speaker Change: Oil production up and in the short term prices downwards.

Speaker Change: Which will have a low cost here.

Speaker Change: Basically that's it.

At the same time, when you will eventually demand Bailey.

Speaker Change: Then I think we will there be some upside for us on comp.

Speaker Change: Yeah Alright.

Speaker Change: Really.

Chris: Yes, Chris.

Speaker Change: My view of net profitability it all depends on where fares and yields fall in the next day through December of this year and it is just too early to say, we will have a strong April because of Easter I think I would be and again I go back to that I'd be modestly.

Speaker Change: Yeah.

Speaker Change: Restrain my <unk>.

Speaker Change: Great My skepticism about Frankfurt low cost terminal ask Eddie to deal with that.

Look well the 3% range a growth headwind for comps this year no as long as we are able to manage the recruitment and the staffing for that kind of lower 3% right.

Speaker Change: Cautiously optimistic on pricing.

Speaker Change: Our forward bookings are 1% headway. There were this time last year I think it is reasonable to expect given the pricing fell 8% last year.

Speaker Change: There will be some inflation this year, but most of those will be on route charges. We think the staff cost run rate will be lower than it was this year, but we're doing good work on the airport and handling charges and fuel will kick in a modest comp <unk> again. So I think we are in a reasonably strong our stable position on comps for the next 12 months.

Speaker Change: I think there's a reasonable profit we might get.

Speaker Change: Three quarters, we might recover four 6%.

Speaker Change: Yes.

Speaker Change: No we have no visibility and therefore, we can't come up with what do we think it will happen to net profit, we think costs will be reasonably constrained and the net profit will all depend on where pricing goes in pricing. As you know we were surprised this year that pricing fell by 8%, we don't where pricing is going this year, but I think there is.

Speaker Change: Just a few obviously we are unhedged on 25% of our view, but if Trump is very effective.

Getting.

Speaker Change: Oil production up and in the short term prices downwards.

Speaker Change: Then I think we will there'll be some upside for us on comp.

Speaker Change: I would be hopeful, but no more than that of recovering some or all of that 8% decline in the last 12 months any low cost terminate in Frankfurt.

Speaker Change: Really.

Speaker Change: My view of net profitability it all depends on where fares and yields fall in the next day through December of this year I mean, it is just too early to say, we will have a strong April because of Easter I think I would be and again I'll go back to the I'd be modestly.

Speaker Change: This is a period of very high, but obviously I mean, the one problem does head Germany doesn't have is unused capacity and this will just add onto it.

Speaker Change: The difficulty in Germany capacity, it's the price and getting airlines to fill that out I mean, if you look at us.

Speaker Change: Partially optimistic on pricing.

Speaker Change: Forward bookings are 1% headway. There were this time last year I think it is reasonable to expect given the pricing fell 8% last year.

Speaker Change: You look at what's happened in a German airports. There would cost you are close to 60 euros for passenger walked with a bloody airports divorce security people in Frankfurt main than there are at gates, rather our passengers on so many things when youre going through but are you looking like.

Speaker Change: I think there is a reasonable profit we might get.

Speaker Change: Three quarters, we might recover four 6%.

Speaker Change: Play there was in Brandenburg, where we had the opening of this massive.

That's half empty.

Speaker Change: <unk> left in huge numbers, we reduced our aircraft I mean, an interesting statistic is that in the capital city of the largest economy in Europe Ryanair the largest airline in Europe is the same number of aircraft base there as we do in visa under Dutch border.

Speaker Change: I think I'd be hopeful, but no more than that of recovering some or all of that 8% decline in the last 12 months any low cost terminate in Frankfurt.

Speaker Change: There's something wrong, and it's going to have to be fixed.

Speaker Change: The aviation policy of the chairman government not unlike what's happened with other parts of the economy and electric vehicles at all sorts of things that we're betting the house on one policy the national champion is not going to come back <unk>.

This is a period of very high, but obviously I mean, the one problem does Ed Germany doesn't have is unused capacity and this will just add onto it.

Speaker Change: The difficulty in Germany capacity, it's the price and getting airlines to fill that out I mean, if you look at us.

Speaker Change: <unk> lost capacity post COVID-19, because they only have one model that centers on.

Speaker Change: Munich, and Frankfurt and Youll see Berlin in decline Hamburg, We will have 60% has gone from there.

Speaker Change: You look at what's happened in German airports, there because you're close to 60 euros for passenger walked through the bloody airports for security people in Frankfurt.

Speaker Change: Clothes, Leipzig Dortmund in Dresden.

Speaker Change: And then there are at gates or there are passengers on so many things when you're going through but are you looking at.

Speaker Change: The only ones that are sort of punching for and fighting for capacity or a small regional airports that regional pattern button.

Speaker Change: Play there is in Brandenburg, where we had the opening of this massive churn.

Speaker Change: It was a sizable city, we're getting spectacular growth in boots, amending and west of Munich is doing fantastically, well Something's got to give in Germany, where it won't be cutting the ribbon on the terminal that's going to solve it they're going to have to lower cost.

Speaker Change: That's half empty easy jazz have left in huge numbers.

Speaker Change: <unk> reduced our aircraft I mean, an interesting statistic is that in the capital city of the largest economy in Europe Ryanair the largest airline in Europe is the same number of aircraft base there as we do in visa under touch border.

Speaker Change: Look we'd be reasonably hopeful Johan is you have a new elections in the spring a new government will clearly want to change the abject failure policies as Alaska, but that is not just airport fees either all of the airport German airports are ridiculously expensive at ATC fees have gone up 50% since COVID-19 with no improvement in the service at all but.

Speaker Change: There's something wrong and thats going to have to be fixed.

Speaker Change: The lost capacity post COVID-19, because they only have one model that centers on.

Speaker Change: Completely.

Speaker Change: Justifiable.

Speaker Change: Security taxes have doubled since COVID-19.

Speaker Change: Munich, and Frankfurt and Youll see Berlin in decline Hamburg, We will have 60% has gone from there.

Speaker Change: Chairman Goldman seems to think that the future the way to follow the economy is just tax the <expletive> out of a air passengers as a result of weak air passengers are avoiding <unk> million.

Speaker Change: We've closed Leipzig Dortmund in Dresden.

Speaker Change: The only ones that are sort of punching for and fighting for capacity or a small regional airports that regional patent button.

Easyjet have massively cut back their capacity Rhinoscope package, we chose based in Hamburg is still charging below and we have no need to we have no desire to go back there.

Speaker Change: The sizable city, we're getting.

Speaker Change: We're growing heavily initially in countries all over Europe, and Germany, you can.

Speaker Change: <unk> growth and beats amending and west of Munich is doing fantastically, well Something's got to give in Germany, where it won't be cutting the ribbon on the terminals that's going to solve it they're going to have to lower cost.

Speaker Change: Okay.

Speaker Change: Stagnate away Andreas the current policies of the federal government or we would hope that the new government will follow some kind of <unk>.

Speaker Change: Look we'd be reasonably hopeful Johan is you have a new elections in the spring a new government will clearly wants to change the abject failed policies as Alaska, but that is not just airport fees either all of the airport German airports are ridiculously expensive Hec fees have gone up 50% since COVID-19 with no improvement in the service at all but.

Speaker Change: Growth minded policies.

Speaker Change: And if nothing else Trump might at least wake up some of these complacent fucking Liberal government in Europe, who think that where we just tax the <expletive> out of air travel and all will be well.

Speaker Change: Stop taxing air travel were critical to the European integration were critical to the competitiveness of the European economy, Mario Monti had the air to Air Air Transport is front and center visual board.

Speaker Change: Completely.

Speaker Change: Justifiable.

Speaker Change: Acuity taxes have doubled since COVID-19.

Speaker Change: Chairman Coleman seems to think that the future of the way to fulfill the economy is just tax the <expletive> out of the air passengers as a result of weak air passengers are avoiding Germany in there.

Speaker Change: A form the abject ATC services, we suffer here in Europe.

Speaker Change: Uh huh.

Speaker Change: Bullish aviation taxes.

Speaker Change: And let the airlines get onto a stop trying to over reregulation air travel through the back door with the Italian price decree of the Spanish Bloody bagpipes.

Speaker Change: He suggested massively cut back their capacity Rhinoscope package, we chose based in Hamburg is still charging below and we have no need to we have no desire to go back there.

Speaker Change: Get the Hell out of the aviation industry, and let us get on with delivering growth and competitiveness.

Speaker Change: We're growing heavily initially in countries all over Europe, and Germany can.

Speaker Change: Without having to wait for another runway and southeast of the U K.

Speaker Change: Okay.

Speaker Change: Stagnate away under its current policies of the failed government or we would hope that the new government will follow some kind of.

Speaker Change: Which will never happened in my lifetime.

Speaker Change: Although not all as well in Germany Johan.

Speaker Change: Beating the English football, we keep supporting it.

Speaker Change: Growth minded policies.

Okay.

Speaker Change: The next question comes from Alex Paterson with Peel Hunt.

Speaker Change: Alex.

Alex Paterson: Hi, Good morning, everybody if I could just go back to the compensation issue, which which if I understand correctly you were saying.

Speaker Change: Stop taxing air travel where critical is the European integration were critical to the competitiveness of the European economy, Mario Monti had the air to Air Air Transport is front and center visual board.

Alex Paterson: Small number are we talking 2000 30 million euros, something like that and then secondly, similarly with the legal charge.

Speaker Change: A form the abject ATC services, we suffer here in Europe.

Speaker Change: <unk>.

Alex Paterson: Is that I think Julie has mentioned the total charge was $170 million have you therefore provided $85 million being half of the 117.

Speaker Change: Bullish aviation taxes.

Speaker Change: And let the airlines get onto a stop trying to over reregulation air travel through the back door with the Italian price decree of the Spanish Bloody bagpipes.

Okay. The compensation is a small number we're not putting a number on us but it is not a million miles away from the numbers you quoted.

Speaker Change: Get the Hell out of the aviation industry, and let us get on with delivering growth and competitiveness.

Alex Paterson: The legal side. The 170 was for all of the airlines.

Speaker Change: Without having to wait for another runway and southeast of the U K.

Speaker Change: Which will never happened in my lifetime.

Speaker Change: We are but because miners by far and away the largest airline in Spain. We were in for $107 million. So we provided about 50% or about $54 million in the quarter.

Speaker Change: Other than that hold as well in Germany Johan.

Speaker Change: Beating the English football, we keep supporting it.

Speaker Change: Thanks.

Alex Paterson: So the compensation number with Boeing is small.

Speaker Change: The next question comes from Alex Paterson with Peel Hunt.

Alex Paterson: The legal charges quite significant particularly in a quarter, but we are.

Speaker Change: Alex.

Speaker Change: Alright, good morning, everybody. If I can can I just go back to the compensation issue, which if I understand correctly you were saying.

Alex Paterson: Im very confident that that find will that those planes will be rule to be in breach of EU law and will be rolled back, but it might take us a year or two to roll it back.

Speaker Change: Small number are we talking 2000 30 million euros, something like that and then secondly, similarly with the legal charge.

Thank you very much.

Alex Paterson: Thanks, Alex next question please.

Alex Paterson: Our next question.

Alex Paterson: It's Tom <unk>.

Speaker Change: Is that I think Julie has mentioned the total charge was $170 million have you therefore provided $85 million being half of the 117.

Alex Paterson: <unk> J P Morgan.

Alex Paterson: Hi, Yes, good morning, good morning, Michael.

Alex Paterson: First one just on just on the.

Alex Paterson: The ownership and control restrictions, maybe you could just shed the general feedback you've got so far from your consultation with regulators and <unk>.

Speaker Change: Okay. The compensation is a small number we're not putting a number on us but it is not a million miles away from the numbers you quoted.

Alex Paterson: Aldis.

Speaker Change: The legal side. The 170 was for all of the airlines.

Alex Paterson: And then just can I just go back and confirm a number from earlier on in the coal I think is when youre answering the question on the SaaS did you say that.

Speaker Change: We are but because pioneer is by far and away the largest airline in Spain. We were in for 107 million. So we provided about 50% or about $54 million in the quarter.

Alex Paterson: Cost plus stock cost will be roughly $1 billion in March 2026.

Speaker Change: Thanks, a lot.

Speaker Change: So the compensation number with Boeing is small.

Speaker Change: Okay. Thomas I'll give you the second one Julia she wanted to update you on the consultation with shareholders and regulators on the ownership and control yes.

Speaker Change: Legal charge is quite significant particularly in a quarter, but we are.

Speaker Change: Im very confident that that fine with that.

Speaker Change: Hi, Harry So we met with shareholders representing over two thirds of it.

Speaker Change: Those planes will be rule to be in breach of EU law, it will be rolled back, but it might take us a year or two to roll it back.

Speaker Change: Issued share capital over the last few months.

Speaker Change: Discussions have focused on.

Speaker Change: Thank you very much.

Alex Paterson: Thanks, Alex next question please.

Speaker Change: Our current restrictions as compared to those applied by other airlines.

Alex Paterson: Our next question.

Alex Paterson: Tom Harry Gowers Lee.

Speaker Change: Whether there is a competitive disadvantage to us in.

Alex Paterson: <unk> J P Morgan.

Alex Paterson: Hi, Yes, good morning, good morning, Michael.

Speaker Change: In the current restrictions.

Speaker Change: The <unk> the potential impact of a change.

Alex Paterson: First one just on just on.

Speaker Change: The ownership and control restrictions, maybe you could just shed the general feedback you've got so far from your consultation with regulators and shareholders.

Speaker Change: In the current structure and then when it comes to the impacts of focus has been on the returning U K and U S demand to the ordinary line and potential inclusion in interface.

Speaker Change: Can I just go back and confirm a number from earlier on in the coal I think is when youre answering the question on the SaaS did you say that.

Speaker Change: What that would do to passive investments.

Speaker Change: ETS cost plus stock cost will be roughly $1 billion in March 2026 that wrong. Thanks a lot.

Speaker Change: Returning or growing.

Speaker Change: And then on the on the regulator side again kind of positive helpful engagement when well so far again a lot of focus on.

Speaker Change: Okay. Thomas I'll give you the second one Julia she wanted to operations on the consolidated with shareholders and regulators on the ownership and control yes.

Speaker Change: Hi, Harry So harri, we met with shareholders representing over two thirds of.

Speaker Change: Potential.

Speaker Change: Change.

Speaker Change: The purchase restrictions.

Speaker Change: You should share capital over the last few months disc.

Which are the kind of more challenging of the two options that we're considering and.

Speaker Change: Discussions are focused on.

Speaker Change: Our current restrictions as compared to those applied by other airlines.

Speaker Change: Kind of competitive distortion arising from the current restriction on our side as compared to the structure followed by some of the other airlines.

Speaker Change: Whether there is a competitive disadvantage to us in.

Speaker Change: In the current restrictions.

Speaker Change: The <unk> the potential impact of a change.

Speaker Change: We still have a few follow ups in the diary.

Speaker Change: In the current structure and then when it comes to the impacts of focus has been on the returning U K and U S demand.

Speaker Change: Over the next few weeks and we haven't yet reached the 50% threshold, 50% of your ownership threshold, we are making progress on that front.

Speaker Change: To the ordinary line.

Speaker Change: <unk> made significant progress since we announced the consultation in early September but it is difficult.

Speaker Change: And potential inclusion in interface and what that would do to passive investments.

Speaker Change: <unk> to say at this stage, whether we're looking at another month or three months or maybe it will be closer to the middle of the year by the time, we get to the 50% Mark when we do the board will make a final decision. So no decisions have been made yet but feedback from investors has been very helpful. In helping the board understand where <unk>.

Speaker Change: Returning or growing.

Speaker Change: And then on the on the regulator side again kind of positive hopefully engagement when well so far again a lot of focus on.

Speaker Change: The potential.

Speaker Change: <unk> of the purchase restrictions.

Speaker Change: Mr Stand on this issue.

Speaker Change: Thanks to the thing that was helpful. Thomas.

Speaker Change: Which are the kind of more challenging of the two options that we're considering.

Speaker Change: Yes, so just to clarify you said the Etfs fiduciary for FY 'twenty volumes is about $850 million and we're better hedged going into next year to offset you unwind some free allowances. So we expect ETS and SaaS to be just over opinion in FY 'twenty. So combined.

Speaker Change: And.

Speaker Change: The kind of competitive distortion arising from the current restriction on our side as compared to the structure followed by some of the other airlines.

Speaker Change: We still have a few follow ups in the diary.

Speaker Change: Okay. Thanks, guys.

Speaker Change: Over the next few weeks and we haven't yet reached the 50% threshold, 50% of your ownership threshold, we are making progress on that front.

Harry: Ah clarified Harry.

Speaker Change: Okay next question please.

Speaker Change: <unk> made significant progress since.

Speaker Change: That was our final question is Jonathan we'll hand back over to you Michael.

Speaker Change: We announced the consultation in early September but it is difficult to say at this stage, whether we're looking at another month or three months or maybe it will be closer to the middle of the year by the time, we get to the 50% Mark when we do the board will make a final decision. So no decisions have been made yet but feedback from.

Speaker Change: Okay. Thank you very much ladies and gentlemen.

Speaker Change: So.

Speaker Change: Don't have anything else to add to that look.

Speaker Change: I think our Q4 comp prior year comp this year is going to be tough.

Speaker Change: I think let's keep every feet on the ground for the nine months.

Speaker Change: Collectively pricing was down 8%, yes, we've had a reasonably good Q3 Q4 numbers will be challenging and then I think we will have and I would point again, we will have an easier prior year comp into Q1, So Q1 will look good.

Speaker Change: Investors has been very helpful in helping the board understand where investors stand on this issue.

Thomas: Thanks for the segment was helpful. Thomas.

Thomas: Yes, so just to clarify you said the Etfs fiduciary for FY 'twenty volumes is about 850 million has gone into next year to offset you unwind some free allowances. So we expect ETS and SaaS to be just over $1 billion in FY 'twenty to.

Speaker Change: I think the big issue.

Speaker Change: I am afraid we are not able to help you at this point in time.

Speaker Change: <unk> capacity this year will be heavily constrained we think that is probably.

Speaker Change: It helps our certainly our growth and helps our pricing, but it's too early to say yet what are they pricing number will come out.

Thomas: So combined.

Thomas: Okay. Thanks, guys.

Speaker Change: Working on our budgets, we expect to finalize those by the Middle School. They go to the board at the end of February.

Thomas: Let's clarify it Harry.

Thomas: Okay next question please.

Speaker Change: But we are finished.

That was our final question is Jonathan we'll hand back over to you Michael.

Speaker Change: 2025, a little bit better than we had originally thought at the start of last year. When we saw pricing falling away from us pricing does appear to be recovering, but we think it will be modest and will continue to be cautious in the meantime, we are working very closely with Boeing we really need an end to these very frustrating delivery delays we are hopeful.

Michael: Okay. Thank you very much ladies and gentlemen.

Speaker Change: So I don't have anything else to add to that look I think our Q4 comp prior year comp this year is going to be tough.

Speaker Change: So I think let's keep every feet on the ground for the nine months.

Speaker Change: I mean, we are comfortably get to nine aircraft in time for May of this year and then the <unk> nine aircraft for next year, then we're working hard with Boeing and with the asset to make sure that we get the Max or the <unk>.

Speaker Change: <unk> pricing was down 8%, yes, we've had a reasonably good Q3 Q4 numbers will be challenging and then I think we will have and I would point again, we will have an easier prior year comp into Q was that Q1 will look good but I think the big issue and Im afraid were not able to help you at this point in time is somewhere capacity this year will be heavily constrained.

Speaker Change: <unk> 10 certified as quickly as possible. So that we can kind of plan for our <unk>.

Speaker Change: Capacity and market share growth in December 2027.

Speaker Change: Okay.

Speaker Change: We think that is probably.

Speaker Change: We are not doing a road show as you know what Q3, Peter Larkin and these team here and the IR team are in the off the Dublin, if anybody has any follow up questions for him.

Speaker Change: Our certainly our growth and helps our pricing, but it's too early to say yet what are they pricing number will come out.

Neil: Neil is doing.

Speaker Change: We're working on our budgets, we expect to finalize those by the Middle School. They go to the board at the end of February.

Neil: If you are investors in London today, and I think you're going to Paris tomorrow and other than that the rest of the team here will be full.

Speaker Change: But we finished FY 'twenty five a little bit better than we had originally thought at the start of last year. When we saw pricing falling away from us pricing does appear to be recovering, but we think it will be modest and will continue to be cautious in the meantime, we are working very closely with Boeing we really need an end to these very frustrating.

Neil: Focusing on our day to day job, which is reducing cost.

Neil: Rolling out growth and taking market share from competitors, which is not that difficult in the current marketplace.

Neil: Thank you very much everybody look forward to seeing you again soon.

Neil: Hi.

Speaker Change: Delivery delays were hopeful well.

Speaker Change: Until we get the nine aircraft in time for May of this year and then the <unk> nine aircraft for next year and then we're working hard with Boeing and with the asset to make sure that we get the Max the Max 10 certified as quickly as possible. So that we can kind of plan for our.

Speaker Change: Capacity and market share growth in December 2027.

Speaker Change: Okay.

Speaker Change: We are not doing a road show as you know what the Q3, Peter Larkin and these team here and the IR team are in the off the Dublin, if anybody has any follow up questions for him.

Speaker Change: Neil is doing if.

Speaker Change: If your investors in London today, and I think you're going to Paris tomorrow and other than that the rest of the team here will be.

Focusing on our day to day job, which is reducing cost.

Speaker Change: Rolling out growth and taking market share from competitors, which is not that difficult in the current marketplace.

Speaker Change: Thank you very much everybody look forward to seeing you again soon.

Speaker Change: Bye.

Speaker Change: This concludes today's Ryan our conference call. Thank you for joining you may now disconnect.

Speaker Change: Yeah.

Speaker Change: Sure.

Speaker Change: Yes.

Speaker Change: Okay.

Q3 2025 Ryanair Holdings PLC Earnings Call - Q&A

Request a DemoDemo

RYA

Ryanair Holdings

Earnings