Q4 2025 Ryanair Holdings PLC Earnings Call - Q&A

Hello, everyone and welcome to the Ryanair Holdings plc, FY 'twenty five adding release my name is not yeah, it'll be coordinating the call today. If you would like to ask a question I do say by pressing star followed by one on your telephone keypad I will now hand over to your host Michael O'leary Group C. Oh fine now.

Michael O'Leary: How old he can speak in Mike who please go ahead when you're ready.

Speaker Change: Hey, good morning, ladies and gentlemen, and welcome to the Ryanair full year results conference call. We have all of the management on various calls as I'm not trying to distribute some of the questions around as best we can.

Speaker Change: Ill take a brief here you have seen this morning, we released the numbers on Ryanair Dot Com website.

Speaker Change: For the full year profit after tax of $1 6 billion compared to the prior year profit after tax of $1 92 billion. The reason for the decline in profitability was due to a 7% decline in air fares last year, a number I think we're particularly proud of that fare decline drove traffic growth of 9% to a new <unk>.

Speaker Change: Record of 200 million passenger despite repeated Boeing delivery delays last summer while average fares were down 7% units ancillary revenues were up 1% total ancillary revenues were up 10% with 9% traffic growth, but I think the most stunning number coming out of this morning's numbers is unit cost per passenger were flat last year, which means we.

Speaker Change: Meaningfully again widened the cost gap between us and our competitor EU Airlines and if anything that strengthens our ability to grow over the next decade. Despite Boeing delivery delays, we took delivery of 181 game changers.

Speaker Change: At the end of April we had 618 aircraft in the fleet for this summer we are constrained in terms of growth because of those delivery delays. We are still there's still 29 aircrafts will take this winter for summer of 2026.

Speaker Change: We can only grow by 3% this year to about 206 million passengers.

Speaker Change: We use the profit warning last year as an opportunity to increase the share buybacks that we bought back 7% of our shares last year and a cancel them in their entirety.

Speaker Change: And so I think overall a reasonably good year in a very tough pricing environment for Ryanair.

Speaker Change: We move into this year, then with the kind of.

Speaker Change: Unusually for us with weak prior year comps, particularly in Q1.

Speaker Change: And we're already seeing that now so we have a full Easter in this year's April compared to only half of Easter in in last year.

Speaker Change: We are also fixed.

Speaker Change: A boycott last year, we now have almost all of the significant otas are approved and our booking strongly into this summer which is why we look into this summer forward bookings are running close to 1% ahead of where they were at this time last year.

Speaker Change: Pricing up.

Speaker Change: Certainly very strongly in Q1 pricing in Q1 is up about 14%, 15% Q2 is it a bit early to say, yes, we have only about 30% of the bookings in the system for Q2, but price it looks like it's up four 5%, we're not going to get quite back all of the 7% decline we had last year Q2, but it looks like we will get back.

Speaker Change: A significant proportion if not all of us trying to get the balance sheet gross cash is a bit stronger than we had expected again, primarily due to Boeing delivery delays at year end gross cash was $4 billion net cash was about $1 3 billion and that's why we've brought forward another share buyback this year.

Speaker Change: <unk>.

Speaker Change: Head on cat long on cash because of the Boeing delivery delays and because we have that spare cash we think it's timely to return it to shareholders. The big challenge for us in the next year in terms of cash flow as we have $2 billion of maturing bonds $850 million in September $1 2 billion in May of 2026, we plan to pay down all of those bonds.

Speaker Change: Our internal.

Speaker Change: Out of our internal cash balances and that would mean ryanair, whereas this time next year be entirely or almost entirely debt free and sitting on a fleet of 650 aircraft at totally unencumbered and debt free.

Speaker Change: And we would plan to continue to return excess cash to shareholders, but we won't have a lot of excess cash for the next year or two as we pay down debt and begin to fund the step up in the Max 10 deliveries at the relationship with Boeing Boeing performance has continued to materially improve in the last 12 months, we think the new management team.

Speaker Change: Led by Kevin Bergen, Stephanie Pope in Seattle is doing a terrific job.

Speaker Change: The aircraft I Hope you guys are coming out of Wichita in a timely manner with very little or no defects being carried forward and thats, increasing boeing's ability to step up its manufacturing I'm heartened by the fact that in April Bowie delivered 45 aircraft compared to just 24 aircraft in April 2024, and we expect that will continue.

Speaker Change: Boeing are reasonably confident that the Max turns will be certified later this year. The Max seven first the Max 10 is before the end of the calendar year and that would put us in good shape, we think to take delivery of our first 15 matches in the spring of 2027.

Speaker Change: We expect the European short haul capacity will remain constrained out to 2030 as many of Europe's Airbus operators are still working through their Pratt and Whitney engine repairs. The two big manufacturers Boeing and Airbus are well behind on their aircraft deliveries and EU consolidation continues I think the consolidation is also driving that benign pricing environment.

Speaker Change: Really as the patterns of tests control of Alitalia in Italy, we're seeing strong pricing.

Speaker Change: This upward pricing movements in highly Italia, we would expect the same to take place in Portugal, and one of the majors buys EAP and as the largest airline in Italy, and the largest airline in Portugal, we would expect to continue to benefit from that trend.

Speaker Change: One of the more notable regional development has been on the ownership and control site. Following an extensive consultation period with regulators and investors. The board removed the ownership restrictions in March it means that EU non EU shareholders are free to buy the <unk> or the <unk> without restrictions, we will continue to maintain.

Speaker Change: The voting restrictions non EU shareholders console with the Ags recognition of that development. The MSCI Index recently confirmed <unk> inclusion and the MSCI World Index at the end of May and we would expect to be included in one or two other.

Speaker Change: Of the bigger.

Speaker Change: World indexes before the end of the year.

Speaker Change: Want to touch briefly on the fact that Howard Millar has chosen not to seek reelection at the next AGM Howard who has been CFO for 1992 to 2014, a period of some 22 years.

Speaker Change: And then it had been in <unk> for the last nine years has paid off.

Speaker Change: An enormous contribution to the success of Ryanair in fact without himself and Michael Cawley.

Speaker Change: Together when we closed at 997, we would not be where we are today, so I want to recognize and thank Howard for his effort turning briefly to the outlook as I tried to communicate this morning, and we expect the FY <unk> traffic growth is constrained we expect to grow by maybe just 3% this year to 206 towards.

Speaker Change: 6 million passengers because of those 29 bowling delivery delays.

Speaker Change: We've agreed with Boeing will take those deliveries at the backend of this calendar year. So through September October November. So we're guaranteed will have all of the.

Speaker Change: 210 game changes well in advance of summer 2026, Nevertheless growth issue of the constraints of $206 million and then we'll pick it up again or recovered to $215 million in FY 'twenty seven.

Speaker Change: Following year flat unit costs, we expect very modest unit cost inflation in FY 'twenty six as the delivery of more game changers strong jet fuel hedging and cost control across the group helped to offset most of what are very egregious increased roofing ATC charges and higher environmental costs.

Speaker Change: The unwinding of the Etfs and the introduced the SaaS.

Speaker Change: Land blend mandates, however, and I know what you come up on the call. We think that unit costs would be modest maybe up 1% to 2%.

Speaker Change: Where we are this year to date for summer 2025 demand is strong peak fares are trending modestly ahead of the prior year. We think we were up five 6% in Q2.

Speaker Change: And the question is what happens for the remainder of the year Q1 fares are on track to finish it made high teen percent ahead of Q1 FY 2025, some of that is the weak prior year comp and the fact that only half of Easter was in last year's Q1, both halves of Easter. This year is Q1, we expect Q2 pricing to recover some but not all.

Speaker Change: All of the 7% decline we experienced in prior year Q2 is that we've only about 30, 35% in Q2 bookings in the system and the final H. One outcome is therefore heavily dependent on close in bookings at the peak summer year summer yields as these normal at this time of the year, we have zero <unk> visibility and therefore, we don't think.

Speaker Change: We can give out full year guidance.

Speaker Change: We cautiously expect to recover most but not all of last year's 7% fair decline as we move through the year it could be better than that it could be worse than that it depends on what happens in the geopolitical environment.

Speaker Change: As we move through the year, but that should lead to a reasonable net profit recovery our growth in FY 'twenty six.

Speaker Change: We made two years ago, we recorded a profit of $1 9119, 3 billion last year on the back of 7% lower fares that fell to one 6 billion and I think youll see a.

Speaker Change: Reasonably strong recovery in that through for the remainder of this year, but we're not willing to give guidance at this stage.

Speaker Change: That's because.

Speaker Change: The remainder of Q1 Q2 are heavily dependent on close in pricing, but one thing I would drive would draw your attention to though is the opportunity in terms of lower cost oil going forward.

Speaker Change: We had already hedged about 85% of our FY 2016 to $76 a barrel and last year, we were hedged at $79 a barrel. So we secured a 4% saving.

Speaker Change: Following the Trump tariff announcement or independence day, we saw a material fall in oil prices.

Speaker Change:

Speaker Change: We will pick up that at the moment is out Friday branch was a $62 a barrel jets was $67 a barrel, we would pick up meaningful savings on the 15% unhedged for the remainder of this year.

Speaker Change: We did jump on the oil price weakness following the tariff announcements to hedge 40% of next summers in other words haynesville in FY 'twenty seven.

Speaker Change: Hedged, 40% of next summer's oil at $66 a barrel a 13%.

Speaker Change: Savings.

Speaker Change: Compared to this year.

Speaker Change: In.

Speaker Change: On a coffee or a cost base of $5 billion are.

Speaker Change: Our annual oil price. So we think there is a material possibility of we think there's a real possibility of making material oil price savings not just for us but for the rest of the European industry I think in advance of President Trump's trip to the Middle East last week, we felt more of the more significant developments was the fact that the OPEC plus producers of Biogen.

Speaker Change: Their production cuts.

Speaker Change: Three weeks before he visited the middle East and I think.

Speaker Change: We expect the U S administration will turn its attention towards increasing supply and reducing oil prices in advance of the mid terms next year and there may be a short term or medium term gained four airlines in general, but Ryan Air in particular as we move forward for the remainder of FY 'twenty six where we have.

Speaker Change: Weaker FY 'twenty five comps.

Speaker Change: That's all I've got to say at this stage Neil I'll hand, it over to you in terms of anything you want to draw attention to in the MD&A and then we'll open it up to Q&A. Thanks, Michael I'll, just reemphasize, maybe a couple of the points that you made so just focusing on costs.

Speaker Change: Obviously guided we were very pleased to come in flash.

Speaker Change: On a unit cost basis. This was a result of our strong hedging, which helped offset productivity pay increases that we had another Boeing delay related costs that came through the business as Michael just said, where we continue to be well hedged into the current financial year at about $760 a metric ton.

Speaker Change: And then a meaningful dip on our hedging ratio of 660 metric tons.

Speaker Change: Slide 27, where we're over 40% hedged in the all important first half and about 35% in the second half of the year, it's not that lens, it's about 36% on the year liquidity was very strong.

Speaker Change: It helped a little bit by the timing of following delivery delays, but we come in with just under $4 billion gross cash $1 3 billion net cash after $1 6 billion Capex.

Speaker Change: And $1 9 billion shareholder returns, including the $1 5 billion.

Speaker Change: Buyback, we will be launching the $750 million buyback in the open period, which starts tomorrow. So laser on this week's up $750 million buyback will formally.

Speaker Change: Launch just on the liquidity side as well.

Speaker Change: <unk> iOS that we increased our revolving credit facility.

Speaker Change: Back in March we Upsized it from 750 million to 1.1 billion most of it on drawn at this point in time. So it gives us lots of flexibility and additional liquidity should the need.

Speaker Change: Arise and then finally I would point to are rejoining the MSCI at the backend of May I think this is an important development on the back of the ownership and controls review on Michael I don't really have much more Todd.

Speaker Change: Okay, Eddie you want to add anything or.

Speaker Change: What kind of a just a commercial general trading point of view for the summer just from the judge.

Speaker Change: Mike.

Speaker Change: Demand is solid.

Speaker Change: And like we've taken the opportunity with restrictive capacity increases.

Speaker Change: You can catch up later in the year with Boeing with.

Speaker Change: Further extracting cost decreases.

Speaker Change: Some of the major hubs that we play in so we're much more.

Speaker Change: Picky about where we allocate that capacity that's going to continue.

Speaker Change: So where we pretty much have all of those aircrafts allocated in their own in their own money, but we're still a small number.

Speaker Change: It's reallocated so.

Speaker Change: Good okay.

Speaker Change: Q&A.

Speaker Change: Try and moving some of the questions around we have all the wider management team on the line so.

Speaker Change: Moderate if you'd open it up please and we're going to treat everybody to two questions and we'll try and get through as many as we can Neil has to leave.

Speaker Change: Yes.

Speaker Change: 11 o'clock hour tightened.

Speaker Change: Try to get it wrapped up by 11 11 15.

Speaker Change: Yes.

Speaker Change: Thank you if you would like to ask a question. Please press star followed by one on your telephone keypad now if you change your mind. Please press star followed by Kate when the page also question. Please ensure your line is Amit you lately.

Speaker Change: As it yourself to take questions.

Jamie: I also ask question guys, Hey, Jamie <unk> of Deutsche Bank, Jamie. Please go ahead.

Speaker Change: Good morning Gents.

Speaker Change: Ticket.

Speaker Change: Ticket revenue per Pax down only 5% in March without Easter bent up potentially as you said, 14% to 15% in June with Easter.

Speaker Change: Net of those two is very strong even considering some tailwind from the resolution of the OTI issues. So have you been surprised by that strength and maybe by geography, where do you see it mostly coming from and then one for Neil.

Speaker Change: Regina would be too early to ask for detailed non fuel cost guidance, but can I ask about Capex you mentioned in the deck, taking the first 15 Max 10 in spring 2007 would you be willing to give us the on the phasing of Capex over the next three years play through to fiscal 'twenty eight thanks.

Speaker Change: Okay I'll take the first half of that.

Speaker Change: AEG contributed as well.

Speaker Change: Not that surprised at the strength of Q1, but again I would caution it is week. Prior it is more driven by weak prior year comps we have.

Speaker Change: Easter was in March last year, we have both houses of Easter This year in March.

Speaker Change: We have strong growth because last year, we were growing capacity by 9%. We added 17 million passengers last year. This year, we're already growing capacity by 3%.

Speaker Change: I think you have a combination of weak prior year comps very strong Easter because you've two houses Easter in April and then we have the largest here and in Europe are only growing our capacity CCAR. This year by 6 million passengers instead of 17 million passengers last year and you are creating a more benign pricing environment across Europe generally and we.

Speaker Change: We'll be the beneficiaries of that I think Q2 is probably a more accurate reflection of the underlying trend. We think at this point in time.

Speaker Change: You too and we did have a very strong Q2 last year, we think Q2 will price up four 5% at the moment that could get to 7% if the close in pricing remains strong it could weaken if theres some unforeseen events like terrorist events in Europe, but who knows.

Speaker Change: And geographically because we're in a constrained capacity, we've been trying to allocate more capacity those countries and regions. We're abolishing taxes regional easily Hungary, Sweden on those airports, who are still incentivizing growth, but I'll ask <unk>, maybe to add a couple of words rather than Neil you.

Speaker Change: You might comment on the Capex any yes.

Speaker Change: <unk> touched off all of the points there I mean, I wouldn't run away with work.

Speaker Change: It has happened.

Speaker Change: As we close out Q1, it really is down to.

Speaker Change: And exceptionally strong Easter.

Speaker Change: We're weak prior year comparable since lab.

Speaker Change: We have about 30% of the bookings 84.

Speaker Change: Pete.

Speaker Change: And we are running.

Speaker Change: Like just ever so slightly ahead.

Speaker Change: Volumes.

Speaker Change: Again wouldn't run away with us.

Speaker Change: In Q1 at all or translate that translate that into Q2, no real things on the geographies.

Speaker Change: Small part of our network with the Dod started college, others that there are not a call. It even is that there is less.

Speaker Change: This capacity from all operators in that area as opposed to cope with other CMC. So restriction on a combination down there, but other than that it's right across the board in terms of demand.

Speaker Change: The series a colleague.

Speaker Change: The only other one we do there is.

Speaker Change: The one market that has constrained itself has been Dublin, obviously, where the new government, which has now been in place for five months with a seatback 20 seat majority is still hasn't passed any legislation to scrap the Dublin Airport cap.

Speaker Change: We have successfully got a legal injunctions against it but it has held up growth that we would otherwise have deployed to Dublin, we're growing reasonably strongly in Cork and Shannon, but theyre very small markets, Dublin is being constrained by Goldman inaction and 665 months into the long term. This new Goldman it's time for them to start passing legislation before the old bugger off.

Speaker Change: Summer holidays in the next couple of weeks near Capex.

Speaker Change: Yes, Jeremy good morning, you're right I'm not going to give you an awful lot of color over and above what we've already put out there. So we're talking about.

Speaker Change: About 2 billion, maybe a bit higher this year, depending on the timing of aircrafts.

Speaker Change: Engine shops.

Speaker Change: <unk> and <unk>.

Speaker Change: <unk>.

Speaker Change: The PDP is on the Max and I are going to ramp up relatively slowly over the next couple of years. So so youll see a dropdown in capex into FY 'twenty seven somewhere below.

Speaker Change: 2 billion and then it'll start to creep up again into FY 'twenty eight.

Speaker Change: Probably be image to two to two five to three territory last year, but as I said it ramps are relatively slowly this year and next and with only a small number of aircrafts 15 coming in ahead of summer 2027, there won't be too many delivery payments on the tan at that point in time as well.

Speaker Change: Thanks, guys. Thanks, Nick next question please.

Speaker Change: The next question goes to it Stephen furlong Davy Steven Please go ahead.

Stephen Furlong: Stephen Hi.

Stephen: Yeah, Hi, Michael.

Stephen Furlong: Can I ask you one question on <unk>.

Speaker Change: <unk> you.

Stephen Furlong: Some questions on that.

Stephen Furlong: Regulation post Draggy and still.

Stephen Furlong: You're seeing any signs that that's implying to regulate I'm thinking of the challenges with the SaaS. Some delays in deliveries just makes the whole net zero thing a challenge for the industry.

Stephen Furlong: And then also the noise they make about about retaliatory tariffs.

Stephen Furlong: Boeing.

Neil: And then the other thing maybe for Neil.

Neil: Just talk again about the rationale for paying back the bonds and B for the upsizing of the.

Neil: The.

Neil: So the revolver that would be great. Thanks.

Speaker Change: Okay. Thanks, Steve It no I'm, sorry to say, we've seen very little action from the EU.

Speaker Change: <unk> report I think it was a very positive development last year, but theres been no action on is if you want to call out EU inaction on regulatory.

Speaker Change: Is the failure to take any action on ATC reform were given in two very simple, but basic ATC reforms wouldn't protect overflights jewelry national strikes.

Speaker Change: No action whatsoever.

Speaker Change: Wringing of hands single with a national competence. It is international competent the euro.

Speaker Change: It's a single market you can't close down the skies over a single market just because the French air traffic controllers wanted to go on strike there entirely free to go on strike, but there is no impediment to continuing to overfly, France during a national strike the Italians.

Speaker Change: The Italians, the Greeks and Spanish protect overflights during national strikes and the French would be required for you to likewise at more locally we have dates that lunatic Spanish minister running around trying to force all airlines to take unlimited bags onboard free of charge, it's a clear breach of EU regulation one zero.

Speaker Change: <unk> zero waste, which gives the airlines the freedom to set prices free of national.

Speaker Change: Interference and we're still calling on DG move to take action on this and they have written to the Spanish but they haven't yet started the enforcement procedures and they should.

Speaker Change: SaaS I would be more optimistic.

Speaker Change: Now cleared that oil majors are cutting back development of renewable fuel there will not be a SaaS supply to meet the mandate in 2030, and the only logical development would be to move back those mandates I think it will come but it will be come slowly.

Speaker Change: But Europe could do much more.

Speaker Change: In terms of rolling back regulation, and making air travel more competitive, but one very significant thing would be to move from the environmental taxes in Europe away from Etfs towards core CEA, which is what the international long haul airlines baked.

Speaker Change: European Airlines should be moving.

Speaker Change: Environmental taxes away from Etfs, which are more towards the core so the world paying core CRM and then everybody has a is operating off of a level playing field and again no action whatsoever. So as we'd always with European Union, particularly or sub underlay and lots of talk and head nodding no bloody action whatsoever, but we'll keep pushing.

Speaker Change: We'll keep campaigning I do think the airlines I do think we'll see some move back I think they the campaign for ATC reform is an arguable and the campaign to move environmental taxes towards core CF, where European citizens will be paying the same environmental taxes as non European citizens those two case.

Speaker Change: Our own arguable and should be implemented.

Speaker Change: Neil you want to come back in on the rationale for the bond repayments, yes, sure good morning, Steve and thanks for the question.

Speaker Change: At the moment as has been the case for some time cash continues to be the cheapest form of finance for the Ryanair group, we finished the year with over.

Speaker Change: Or just under $4 billion in cash we're sitting on over 4 billion in cash at the moment.

Speaker Change: So we're planning on the base of paying down the $850 million bonds in September that bond has a coupon of 287, 5%. If we were to refinance that today and we would pay somewhere.

Speaker Change: Excess of three 5% so cash continues.

Continues to be the cheapest form of financing we've got another $1 2 billion bonds.

Speaker Change: And I'll, even water and coupon of 875% maturing in May of next year and again, unless we saw a significant dip.

Speaker Change: In share prices over the coming months, we would finance that.

Speaker Change: Also of our own cash resources, the revolving credit facility is a great opportunity for our banking community to step up put some balance sheets at risk, while getting opportunities to participate with us on currency and on jet fuel and carbon hedging.

Speaker Change: So we had an opportunity in March to increase the size of the revolving credit facility from 750 million to 1.1 billion.

Speaker Change: We upsized the banking group from 2014 to 17, and we extended the term out to March 'twenty Cherokee from 2020 as there is a very low cost facility most of its own drawn and to be honest, we probably wont draw much of us over the over that term on us or a certain shocks are opportunities that we want to jump on top off but.

Speaker Change: Probably set a very low margin over euribor. So it gives us lots of flexibility and lots of liquidity and really it's an umbrella if it starts raining.

Speaker Change: Great Science.

Stephen Furlong: Next question Thanks, Steven.

James Hollins: The next question Gucci, James Hollins of Exane BNP Paribas James Please go ahead.

Stephen Furlong: Right.

Stephen Furlong: Thanks.

Speaker Change: If I can come back on unit costs, Unlike Jamie variable someone's going to give it a go.

Speaker Change: If I do my math correctly Youre looking at hedged fuel was down about 4% year on year this year.

Speaker Change: Talked about overall unit costs up one to two I assume that employers that student cost up maybe three.

Speaker Change: You flagged double digit increases in things like re charges, maybe just Neal granularity on.

Speaker Change: Where else you're seeing some concentration where youre doing much better than that and the second one.

Speaker Change: For your comments on Easter.

As interest in mountain pricing more pricing up are you seeing any sort of irrational behavior by any competitors in Europe, whether it's on growing rediculous Leo we're putting fares down.

Speaker Change: Maybe sort of reserves I grow again in <unk>.

Speaker Change: Thanks.

Okay. Thanks, I mean, theres not much more we give you in terms of color.

Speaker Change: I think it's a cautious guidance the unit cost up 1% to 2%.

Speaker Change: We still have 15% on hedged fuel that could kick in a significant saving we should bring down unit costs. It might go the other way at the one call out we would have at this point in time, though is <unk>.

Speaker Change: <unk> charges, ATC fees, which are going up by <unk> across Europe, I don't that double digit percent for probably the world's most spectacularly shooting service.

Speaker Change: I'll start no showing for work starting next week at the start of June.

Speaker Change: Our punctuality, which has been at record highs were delivering 85% to 90% on time performance up to the end of May last year that fell to 60% in June July and August and we expect the same to happen again again.

Speaker Change: We should expect this every year, but we but what we're entitled to expect some action for MRSA von der Leyen, who are users grew to reform ATC and yet nothing happens.

Speaker Change: So there are costs that are moving against us and we've also done another round of pay increases with labor starting on the first of April.

Speaker Change: That's part of a long term four five year pay deals, but generally speaking I think we're reasonably comfortable with where unit costs are and what we've been trying to do is to transition across to the Max 10 deliveries, which we hope will happen in spring of 2027.

Speaker Change: And those aircraft will transform our operating costs, we get 20% more seats, they burn 20% less fuel and you can argue whether fuel over the near term will trend downwards or upwards I think on balance it would trend downward into the U S. Midterms next year.

Speaker Change: But.

Speaker Change: The issue for Us in unit cost Jamie is not our absolute unit costs. It is the competition doing I mean, if you look at the reports from all of our competitors across Europe in the last year, we've seen unit cost rise from between 5% to 15% in the case of wound spectacular competitor could manage cost of it jumped up a bit.

Speaker Change: <unk>.

Speaker Change: There are increasingly exposed to financing and leasing rising leasing costs and all of those are rising rapidly. So the unit cost gap between us and every other airline is getting wider and we have a unique 12 months this year, where we have.

Speaker Change: Unusually for Reiner weak prior year comp. So I think we would make a we'll look good this year, but bear in mind that some of that is due to weak prior year comps.

Speaker Change: Talk to you just on the pricing there is nobody out there doing any irrational pricing because there's no real capacity growth.

Speaker Change: Windsor, taking a couple of aircraft, but frankly, we don't see them in our market places theyre still taking capacity away from our markets.

Those three routes out of Vienna down into Italy.

Speaker Change: This summer where we are there.

Speaker Change: The only competitor in those marketplaces.

Speaker Change: We don't see much out of <unk>.

Speaker Change: There has been a little bit I think some pressure on some of the detour offers TUI inkjet <unk> seem to be kind of doing a bit more seasonally pricing, we think thats the reverse.

Speaker Change: The trend last year, where.

Speaker Change: During the Otas boy costs, some of our kind of holiday customers may have moved towards the tour operators, they've all come back towards this year, but no I mean, everything we see across the marketplace, probably driven by us only growing at 3%, which for us will be at historically low rate of growth is everybody is pricing up.

Speaker Change: And most of the pricing up more than us.

Speaker Change: As I have anything on that.

Speaker Change: In.

Speaker Change: We sit here the inkjet.

Speaker Change: We're growing.

Speaker Change: And we will continue to.

Speaker Change: So.

Speaker Change: Number number basis.

Speaker Change: With large and growing in places like Romania further as the sounds of it.

Speaker Change: So we don't really see we don't really see them growing.

Speaker Change: In our markets.

Speaker Change: We have seen some discounting from competitors.

Speaker Change: Rational disaggregated as Michael said that manifest itself.

Speaker Change: Particularly those that are setting package holidays, where they have got the option package of it and see it already.

Speaker Change: Seem to be disappointing.

Speaker Change: On the seasonality rather than on the.

Speaker Change: Okay.

Speaker Change: I can say, so but they are discounted pricing is still materially higher than our kind of entry pricing. So at the moment.

Speaker Change: Everything we see into the summer season, Q1, Q2 is strong forward bookings are stronger than we'd expected forward bookings closing off some of the cheaper seats and we're pricing up.

Speaker Change: Very strong in Q1, but we but I think the only issue for us at this point in time is this in the first half of the year do we get back all of last year, 7% decline or most of it.

Speaker Change: Be more concerned I think we'll get back most of it but not all of it and I could be pleasantly surprised on the upside, but it's too early to say.

Speaker Change: Remember when things are going well in this industry that has always been some core ball comes out of left field whether it's.

Speaker Change: Geopolitical issues terrorism attacks somewhere something so we're always cautious when things when things are going well this well usually something else goes wrong in this business.

Speaker Change: Joe just before we move off this this question I'd just like to add on the cost side, Michael We did call out additional environmental costs in the release. This is sorry, I thought <unk> mandates that have come in this year.

Speaker Change: On the full unwind of the ETS credits.

Speaker Change: I was to point to one area, where I feel a number of beyond this or maybe a little bit life is on that.

Speaker Change: We've guided that we're moving from $850 million charge last year to over $1 billion. This year and I still feel that maybe that's James where some people are a little bit lives in their numbers.

Speaker Change: Okay. Thanks for that next question. Please.

Harry: The next question guys you Harry <unk> of J P. Morgan Harry Please go ahead.

Michael O'Leary: Good morning, Michael.

Harry: First one just on just on yes, just on trying to Atlantic leisure traffic.

Harry: You seeing any evidence so thats redirection to places within Europe online items that this summer.

Harry: Selling material boosting demand or yields from that or is it just too hard to tell at this stage and then just on the <unk>.

Harry: Share buyback running for six to 12 months just what's your thinking in terms of the timeline that we look at the long run to the timeframe given what the size of trading yes, just what your current thinking is on the pace of completing that thanks a lot.

Harry: Okay I'll do the first time.

Harry: Too early to say yet but.

Harry: Anecdotally, there seems to be a kind of a weakness in the EU originating trans Atlantic travel trends U S originating a strong into Europe.

Harry: We think that might be helping that I mean, I think there might be a trend theres a perception certainly in Europe that the U S is an unwelcoming destination at the moment.

Harry: Seems to be translating maybe do a bit more holiday at home in Europe, We see no decline in inbound Trans Atlantic to Europe. This year.

Harry: All of the metrics, we see forward bookings into Spain, Italy, Greece. The holiday Island. This summer has been reasonably strong both on the charter side demand is strong pricing is strong and we think there may be some element there but.

Harry: I Couldnt put a number on us it's more.

Harry: Really anecdotal than anything else is that theres, a little bit very looked at the people in Europe to travel.

Harry: The answer to the states and they are staying at home in Europe, but I wouldn't want to put too much more than that I think the underlying trend on pricing here is not driven by trans Atlantic demand is driven by heavy capacity constraints in the European marketplace, which I think will rollout this year and probably next year again on.

Harry: On the buyback.

Harry: Before I give it to you we are announcing six to 12 months I think we've had a strong run in the share price.

Harry: <unk> comes from the fact that we were surplus cash at the end of the year because of the Boeing delivery delay so.

Harry: I'm not that first of all we do at over six to 12 months I think Neil and the finance team will largely drive that.

Harry: But I would caution I don't think I think we'd be reluctant to promise any more share buybacks for the next year or two we had 2 billion of.

Harry: Our bonds that we have to repay in the next 12 months, that's a big slug of money.

Harry: Do need to keep building a modest.

Harry: Cash position thereafter, we will then that will take us into the run into.

Harry: The Max 10 deliveries running into the summer 'twenty seven of December 28, and we will spend a considerable amount of money on that.

Harry: Opening two engine shops in the next.

Harry: Three two or three years, where a lot of the order for tooling and spares will be front ended.

Harry: And we're looking again, particularly on the LIBOR and BS, we may need to buy some more spare engines there so.

Harry: I would be I think this year's share buyback will be the last one for a year or two unless we do better than we plan on profitability and cash Neil maybe you want to add anything you got on the buybacks.

Speaker Change: I would say Harry I would be expecting it to run slower rather than faster so closer to 12 and six <unk>.

Speaker Change: Last year's 700 million buyback was accelerated because we saw a significant dip on the share price and we leaned into it but if we're in more normalized markets with an $850 million bond maturity in September and a $1 2 billion bond maturity in may of next year.

Speaker Change: I think this will go a bit slower so I would be expecting closer to $12 six months.

Speaker Change: Okay. Thank you.

Speaker Change: Thanks, Larry next question please.

Speaker Change: The next question. Thank you Alex.

Alex: Alex Please go ahead.

Alex: Good morning, gentlemen, good morning, two from me. Please first one just coming back on costs, you mentioned a moment ago around two completed in the first of April but can you just quantify that for which you can think about in 2026, and then any remaining good multiyear pay deal.

Alex: Questions on potash.

Alex: It just seemed you can just think literally are playing into the UK Aoc and avoid any tariffs on delivery itself, but also to what extent would you expect potash shipments increasing an upstream component.

Alex: The upward pressure on future Capex. Thank you.

Speaker Change: Sorry, Alex your line was breaking up I missed the first half of that question.

Alex: Yeah.

Alex: Yes.

Speaker Change: He was quite on pay increases can you just repeat the question we're talking about.

Alex: Yeah.

Alex: <unk>.

Speaker Change: On the right you just mentioned the pay increases request in April if you can please quantify them.

Speaker Change: Well the answer is no we don't quantify the increases there.

Speaker Change: Sure.

Speaker Change: The pay increases the first of April this year, our year, three or four three and four of what our forward five year pages that we have another agreed pay increase in April of 2026.

Speaker Change: Our modest because we tend to front end.

Speaker Change: The pages, where we do multiyear paid yields but no we wouldn't put a number but.

Speaker Change: Our users here with me, who is our director of Pizza gas came to <unk>.

Speaker Change: Give some outlook or give some color on the pay negotiations are where we are on pay deals.

Speaker Change: Yeah. Thanks, Mike I think you've covered most of it there we've got a couple of Cabo currently is expiring next March a couple of pilot ones as well the big chunk is in March 2027, So thats really when the cycle comes out for the next several years and I would just say we've got modest increases in the tail end of the existing agreements running in April 2006.

Speaker Change: <unk>.

Speaker Change: Sorry April 25, just gone on into April 26 was up.

Speaker Change: We think the timing of those deals was driven Alex but as we get into the April of trains rates that we're starting to get into the Max 10 deliveries, where we would be getting a reasonable band productivity benefit out of those aircraft.

Speaker Change: We're getting reasonable activity benefit I think we can incorporate or afford it.

Speaker Change: Reasonably favorable our generous pay deal with our people.

Speaker Change: Without going Mad over three or four year period on the back of productivity gains will be delivered by the Max 10.

Speaker Change: The tariff question again.

Speaker Change: I think if I understood you broke up again, but is one of the solutions with tariffs that we take aircraft into the UK.

Speaker Change: Our view generally on tires is as follows one all of the evidence out of the Trump administration is that they announced tariffs and then but they postpone them for 90 days. They do a kind of an outline trade deal with China with the UK and they get there is another 90 day postponement, we don't foresee tires being a big issue, we think trade deals will rip.

Speaker Change: Place the risk of tariffs and the tariffs the imposition of tariffs on commercial aircraft will be delayed until there is a trade deal.

Speaker Change: We would be very surprised if the Europeans imposed tariffs on commercial aircraft given that Airbus.

Speaker Change: Exports much more.

Speaker Change: Wide body long haul aircraft to North American customers that north when Boeing goes to Europe.

Speaker Change: It couldnt be ruled out.

Speaker Change: But ultimately our deal with Boeing as a fixed price agreements. So the tariffs will be for Boyds account not ours, but we would certainly look work with Boeing to take deliveries into those economies are those countries where.

Speaker Change: We would by working together with Boeing be able to take delivery of aircraft without any risk of tariffs if that was the U K or somewhere else in Europe. We certainly have a look and we will work with Boeing on that.

Speaker Change: Yeah.

Speaker Change: Alright. Thank you next question please.

Speaker Change: The next question goes to deadly surely of Goodbody Dudley. Please go ahead.

Speaker Change: Yes.

Speaker Change: Hi, Michael two questions first of all.

Speaker Change: I think you said on the video today that there was no new basis, which was 160 new routes are.

Speaker Change: The levels of route churn picking up as capacity slows and asked us to manage costs or is it just better opportunities on the newer routes and then the second question is a longer term one in terms of I guess the capacity constraint in Europe Consol.

Speaker Change: Consolidation of the industry do you still think longer term, we move towards four big operators. Thank you.

Speaker Change: Okay, Julia Andrew do you want take the first half in essence.

Speaker Change: Yourself adjacent or dealing with the churns, yes, I mean, there has been a bias towards increasing frequencies as opposed to launching new routes, where you've got to do a lot of investors and lower fares. So.

Speaker Change: And we've also.

Speaker Change: Some extra efficiencies, particularly as we launch the winter schedule this year, where we.

Speaker Change: We're flying less on Tuesdays and Wednesdays and slightly more on Thursdays, we're probably at the levels of what we can do we've been on a program of that for the last two to three years, so you're seeing less new routes more frequency.

Speaker Change: Building on a lot more analysis on how we allocate capacity as well given that they are just smaller numbers and we have moved around capacity and close some basis as well, particularly in place like Scandinavia, where you've seen bill.

Speaker Change: Close.

Speaker Change: And you've seen taxes.

Speaker Change: Rise there is where the tourist taxes when you look across the border in Sweden, where taxes are going the opposite way and then they end up with essentially the bill on the aircraft in the same season.

Speaker Change: And so we'll continue to do that churn will be very judicious.

Speaker Change: Opening new routes.

Speaker Change: Okay. Thanks, Eddie capacity constraints do I think the word moves into the train to forward the government, yes, absolutely.

Speaker Change: Is going to be we are heading for 200 or 206 to over next two years 250 million passengers. The Lufthansa group to be the IAG group and air France, KLM and we think there will be further consolidation. Obviously ta is next on the block I think inevitably we'll have to find a home somewhere with one of the.

Speaker Change: Bigger airlines, because they clearly can't make any money.

Speaker Change: The independent airline and then I think logically that swap over the medium term what happened with easy jet.

<unk> for I think all of the other independent Airlines is what do you do when Reiner keeps expanding in the top of your.

Speaker Change: <unk> for your marketplace.

Speaker Change: They don't seem to have that they don't have a cost base that would enable they generally as a group of airlines one of the cost base that enables them to compete with Ryanair their costs unit costs are still rising while hours are flat or marginally falling for the next couple of years.

Speaker Change: Thanks <unk> next question please.

Speaker Change: The next question.

Speaker Change: Fifth of Raymond James Please go ahead Bobby.

Speaker Change: Good morning, everyone.

Speaker Change: Just a couple of aircraft related question just on the MD retirements with us as expected it looks like maybe fiber tired and.

Speaker Change: And just how are you thinking about disposal disposals in kind of that fiscal year 'twenty six.

Speaker Change: And my second question just on the maxillary could you clarify that Michael did you say you are not taking any more deliveries ahead of the summer and the rest are coming here in the winter is that the way we should think about the rest of the maxillary.

Savi: Yes, Savi. So we had the last five of this year's deliveries are the deliveries for this summer's allows fiber delivered in April all of them came a couple of days early which is positive.

Savi: Already agreed with Boeing that we delay the last 29 of those aircrafts. So we have 181 of the 210 game changer order now delivered we had agreed with them that they would we would delay the last 29 to the spring of 2026, Dave asked US recently would we take them in the autumn of 2025, which doesn't really suit us and if we can't deploy them during the winter, but were going to.

Savi: Take them early so that at least we ensure and guarantee that we have those there for the summer of 2026.

Savi: Obviously, that's always the consideration if there were tariffs we could delay those deliveries will see aircraft manufactured we can bring them forward originated as long as we get those aircraft in advance of summer 2020.

Six.

Savi: We'd be in very good shape so.

Savi: Coming back then and then obviously the next big issue is getting the Max 10 certified and B kind of guaranteeing or ensuring that Boeing delivers those fit first 15 of those aircraft for summer 2007 growth, which again is kind of critical to our continuing capacity growth here in Europe, but like Boeing I am growing more confident that that will happen without disruption.

Savi: The engie retirements.

Savi: Again, we had planned to start maybe retiring the first of the engie sometime around 2028, <unk> 29 ish again, we could time that around the deliveries all day, the Max the Max tens.

Savi: Obviously, the first issue there is we still need to we have the.

Savi: The loud at <unk> 27, and Airbus aircraft, they're due for those leases run out in 'twenty eight 'twenty nine.

Savi: But we would want to try to replace those with some other Airbus aircrafts.

Savi: We're still looking for those opportunities but.

Savi: The market isn't in our favor in the short term I mean current market lease rates are more than double what we pay per month on those 27 aircrafts. So.

Savi: The first issue would be how do we kind of replace those preferably with Airbus if not replace them with maybe some of our older <unk>.

Savi: And then by the time, we get into 2009, Turkey, and we're taking 50 Max turns a year. We would then begin to start to retire some of the older.

Savi: <unk> aircraft and we have no plans at the moment to dispose of them, it's a bit too far away yet.

Savi: Clearly in the current market base, you could dispose of because the leasing companies are short aircrafts and are at pricing up.

Savi: But we're making so much money out of those aircraft, we would want to continue to maintain our own capacity growth in a market, where we're challenged it's more profitable for us to run the aircraft and operate them as you'll see in this morning's numbers and hopefully in next year's numbers that it would be to sell the aircraft so and nothing in the near term on energy requirements and we're very happy.

Where we are in the Max deliveries.

Savi: Next question. Thanks Savi.

Speaker Change: The next question go to Jared Caso of UBS Jared. Please go ahead.

Savi: Right.

Jared Caso: Hi, Thank you everyone. Good morning.

Savi: Michael and team I mean, assuming.

Savi: From a and above.

Savi: The 2000.

Savi: 21 level it looks like.

Savi: Should be able to get your options vesting in about 16 17 days.

Savi: I wanted to get your thoughts in terms of is there a potential for a follow on scheme I don't know if its 26 27 and I know the <unk>.

Savi: Scheme runs to March 28.

And then just also how you see that as an incentive program in general for four Ryan that management's going forward.

Savi: And then the second question.

Savi: And it seems like there's more confidence around Boeing and the Max 10 getting signed off.

Savi: But just wanted to get your thoughts on if it doesn't get signed off on potentially doing more leases.

Savi: <unk> maybe it is.

Savi: External factors you want to accelerate capacity such as pace in UK. So just any thoughts on that.

Savi: That optionality.

Savi: Thanks.

Speaker Change: Okay. Thanks charge I'm glad somebody right the options a question since I'm sure some more arms and the daily EMEA will be raising it opened about 16 the options don't vessels in 2028.

Speaker Change: We may achieve the targets either later on this month or later on this year, but none of those options and it's not a bonus it's share options don't vessels in 2028, I and the rest of the management team have to stay here to 2020 Asia continues to deliver before we can actually get hold of those share option. So they don't come around for another three year.

Speaker Change: Years, and a lot can happen between now and then but I accept there is a possibility that we might at least hit the performance targets. Either later this month, our hopefully later this year remember there's two targets.

Speaker Change: Share price of 21 euros are an annual profit of $2 2 billion.

Speaker Change: Chances of funnel, one scheme I think pretty limited.

Speaker Change: The board about three or four years ago moved away from share options.

Speaker Change: We originally had share obviously you for many years that they were driven by profit targets and the problem is that creates array.

Speaker Change: Sure.

Speaker Change: Sure regulatory concerns that we can share forward looking profit option for our forward looking profit targets.

Speaker Change: So we've moved away from those for the last I think three years certainly the senior management team have been getting L. Tips, which are awarded every two years and that seems to be a kind of quiet her more reasonable way of rewarding as superior management performance and I think that may be what will continue going forward.

Speaker Change: It might contract runs out in 2028, and they'll have to be some disclosure and I presume with the board at the Red cause to.

Speaker Change: My remuneration will be fixed through 2028 onwards, if they want me to stay on after 2028.

Speaker Change: I will have all of the usual bullshit newspapers, all I would draw the point that we are.

Speaker Change: I think we are delivering exceptional value for ryanair shareholders in an era with premiership football or the managers are getting paid $20 million to $25 million a year I think ryanair shareholders are getting a particular value out of.

Speaker Change: Our share options above both mine and the rest of the management team moving on to some more sensitive topics. If the Boeing Max 10 doses certified we've already had that discussion with Boeing Boeing have to make something and it is what it is likely to happen, although I think it's increasingly unlikely.

Speaker Change: Is that they would make more Max eight two hundreds and so Boeing have kind of confirmed with us that if for some reason the Max They don't think the macro you get certified later this year they will.

Speaker Change: Stocks.

Speaker Change: More Max eight 200.

Speaker Change: The agenda for those to US maybe for several 2007 or somewhere 28, Boeing do have to make something.

Speaker Change: Im reasonably confident at this stage that they will be making certified Max Evans at Max 10, fallback position is that make more Max two hundreds and they can do that was about 18 months notice. It's only difference in diffuse large so that one way or another I know, obviously I would prefer to Max tens because they have 20% more seats are 20% less fuel.

Speaker Change: Whereas the eight hundreds of only got 4% more seats are 60% less fuel so operationally and Boeing clearly you want to sell more.

Speaker Change: 70, <unk> hundred so I think that's the fallback position, which both Boeing and we would be reasonably comfortable with but I think the likelihood of that fallback are receding as confidence grows that then you've got the 710 certified later this year.

Speaker Change: Thanks, Gary next question please.

Chivalry Cullinane: The next question guys chivalry Cullinane of RBC. Please go ahead.

Speaker Change: Yes.

Speaker Change: Morning, first question on slide nine where you're expecting 70% passenger growth and full year 2008, it looks like that so I'm just over 2% fleet growth or is there something else.

Speaker Change: Other than fleet growth going on there and then secondly, just on cash tax going forward. The cash tax charge was just under half.

Speaker Change: Tax expense on the income statement what are your expectations.

Speaker Change: In future. Thank you.

Speaker Change: So Neil archive Tracy.

Speaker Change: Malloy might deal with the cash tax question, let me just touch on.

Speaker Change: If you go to slide nine we set out there what we expect from the kind of the fee the fee growth.

Speaker Change: We expect to FY 'twenty seven way, whether that is summer of 2006, we pick up the last 2009.

Speaker Change: Ill.

Speaker Change: Update the engine the Max aircraft are the game changer aircraft takes the freeze up too.

Speaker Change: 600, 5600 to 655 aircrafts the following year, which is somewhere 2007, we go up by 15, which is the first of the 10 first tenant the Max tens.

Speaker Change: <unk> of the Max 10, sorry, we have 20% more seats and we do believe we would actually pick up the reason that there is a little bit more passenger growth. There is that we think we should be able to deploy some more of those aircrafts.

Speaker Change: The automotive 27% range in the spring of 2008, we'd have a bit more growth in the winter half of the year. In addition to the debt into in addition to some of our growth we wouldn't have any issues over Boeing deliveries during the winter period, and we could deploy more of that capacity during the winter period, which is why the passenger growth slightly steps up a bit from 4%.

Speaker Change: In FY 2017.

Speaker Change: 7% in FY, 'twenty, and then levels out at 4% to 29, 4% in 2013.

Speaker Change: And Neil do you want or need or Tracey you want to take the cash.

Speaker Change: The cash tax rate is on a flight to Canada at the moment.

Speaker Change: To go over and meet our shareholders there.

Speaker Change: We expect cash taxes to remain relatively light for the next number of years, we have significant capital allowances.

Speaker Change: Due to the volume of aircrafts that were taking delivery of.

Speaker Change: The effective tax rates this year and last was 10% that will gradually creep up over the next two or three years.

OECD.

Speaker Change: Rules get adopted by more and more countries across Europe unless of course, if there is a rollback.

Speaker Change: Given what's happening in the United States, where they've now moved away from OECD, but on cash tax it will be relatively modest in the overall scale given the capital allowance.

Speaker Change: Great. Thank you. Thanks, Ian Thanks, Larry next question. Please.

Many Bob: The next question goes to many but Kayani of Bank of America. Many Bob. Please go ahead.

Many Bob: Hi, yes. Good morning, So I wanted to ask firstly about <unk> there was around 1% growth per Pax lofty Ed how are you thinking about it. This year is that kind of a similar flat, 1% increase that we should be expecting and secondly, if I could just go back.

Many Bob: Back to unit costs.

Speaker Change: Two of the quarters is there any cadence is one half a bigger increase in second half or anything like that that we should be looking out forward and just secondly, a quick clarification.

Many Bob: The guide is that based on the current jet fuel price or not thank you.

Speaker Change: Okay do you think both of those sort of whats the guide you're talking about there.

Speaker Change: I didn't give any good when you say no more unit cost when you say that modest increase.

Speaker Change: Sorry.

Speaker Change: So the 15%.

Speaker Change: Yes that would be current Def voice is uneven.

Speaker Change: The current jet price and Dave as you see it today like it was taken at a moment in time zone.

Speaker Change: That's based on what Jed closing that fight at about $67, a barrel UN hedged 15% exactly.

Speaker Change: Okay.

Speaker Change: Both of those do you want take ancillary than perhaps.

Speaker Change: Well on the just overall costs I'm not going to break out the quarters, we've given a full year number of day today.

Speaker Change: We're not going to go into the micro of quarter over quarter, but I think there is enough. There are many before you to build from and then on the ancillary is up 1% last year, we would anticipate something similar maybe slightly better.

Speaker Change: FY 'twenty six so I think again, if your models plus 1% you probably won't be a million miles away on a per passenger basis.

Speaker Change: Thank you okay. Thanks, Vinnie, but next question please.

Speaker Change: The next question.

Gerald: Gerald <unk> of Liberum. Please go ahead.

Speaker Change: Eric.

Speaker Change: Good morning, everyone. Just firstly on finance income, which that seems to be very highly in the second half in the fourth quarter I can plug in interest rates.

Speaker Change: Defense.

Speaker Change: I think the nine includes some compensation from Boeing.

Speaker Change: And if so how long is that likely to.

Speaker Change: To continue for.

Speaker Change: And secondly, you talked about.

Speaker Change: Spanish rules on cabin bag charges can you just kind of a point.

Speaker Change: Actually doing or are you still able to charge passengers who will come in bags.

Speaker Change: Coming out of Spain.

Speaker Change: Or are you actually prohibit you from doing that at the moment.

Speaker Change: Yes, no the Spanish VAT ruling judge is under appeal to a regional Spanish courts.

Speaker Change: The appeal is suspensory. So we continue with our policy, which is the we have one large free carryon bags for non priority passengers priority basket get to bring to carryon bags and there will be no change in those rules and we think ultimately unless the at the commission.

Speaker Change: Forces the Spanish too.

Speaker Change: Stop interfering in price. It uses are in breach of EU Reg. If you go to the ECJ, which could take about two years I think.

Speaker Change: Undoubtedly be overturned by the ECJ. So it's only a question of time, but at the moment. There is no change there is a bit of jumping up and down various consumer organizations. All glorious victory provoking passengers you can now bring as many bags as you want nobody in the industry wants to go back to that kind of free for all it will result in much bigger airport security.

Speaker Change: If it results in much higher cost for airlines and higher fares.

Speaker Change: The kind of dome regulation that drag has been pointing out in Europe. The airlines should be allowed to get on with what we do and we have 200 million passengers last year, who demonstrate that they are very happy with our baggage policy and all we wanted to do is to comply with the sizes. So that we don't have we really don't want anybody baggage fees. We just wanted to comply with the bank.

Speaker Change: Rules, which makes as the airport security on boarding aircraft much more quicker financing there is a tiny bit of Boeing compensation. The finance income line, it's not material.

Speaker Change: It will not continue Boeing have caught up on those deliveries.

Speaker Change: Sorry two.

Speaker Change: <unk> thousand nine delivery delays next year there'll be a little bit of compensation, but it's very modest and the numbers are small in the context of a.

Speaker Change: One 6 billion in full year profit.

Speaker Change: Yes, I'd just add in the MD&A, we do breakout that we have a strong cash flow low financing costs in the business and then as Michael said, the modest Boeing compensation of which we received in Q3 and Q4, but it is a confidential agreements, we can't and we won't breakout.

Speaker Change: Break out the exact numbers.

Speaker Change: It's coming to an end at this stage with just the 2000 and delays.

Speaker Change: To be cautious and hopefully no more thereafter.

Speaker Change: I am not alone is at very modest it doesn't go anywhere close to make up for the shortfall we have of <unk>.

Speaker Change: A delayed growth in this marketplace.

Speaker Change: Thanks, John next question please.

Speaker Change: The next question guys to address looking back of Barclays. Andrew. Please go ahead.

Speaker Change: How high that can I just check you spoke about the expenditure on the <unk> shops is that all included in the rough Capex guidance.

Speaker Change: You'd given earlier.

Speaker Change: Western Colorado.

Speaker Change: Got it.

Speaker Change: No no.

Speaker Change: Right.

Speaker Change: Quantify like how big it might be too.

Speaker Change: And so too.

Speaker Change: So.

Speaker Change: Okay.

Speaker Change: And then you're quite in Israel, there's been lots of excitement about the potential of the <unk>.

Speaker Change: In these markets, we still don't have pace how you.

Speaker Change: Cannot about it.

Speaker Change: That to be the opportunity how would you execute it.

Speaker Change: How are you thinking about those two potential opportunities.

Speaker Change: Okay.

Speaker Change: Part of the engine Capex number if not all of it and clearly we're negotiating so and it is also subject to finalizing location to both shops and Theres, obviously, some kind of Goldman assistance and some of that so.

Speaker Change: The reason I wanted to draw your attention to engines that there are so it is a big capex number and it will be a big capex number, but it will be spread over three or four year period, but it's a big number.

Speaker Change: But it's something I think that was secure.

Speaker Change: A significant cost advantage for ryanair going forward at <unk>.

Speaker Change: Firstly on the Ukraine, and Israel situations, I mean, clearly we won't see piece in both.

Speaker Change: Our Israel Tel Aviv schedule, then to a lesser extent, the Jordan <unk> repeatedly being disrupted by.

Speaker Change: Yes.

Speaker Change: That conflict at the moment, we canceled all the Israeli that translates to Tel Aviv until early June.

Speaker Change: And I think we're running out of patience too with Israel, and the Tel Aviv flights to and from Tel Aviv, if theyre going to keep being disrupted by the security disruptions frankly, we'd be better off sending those aircrafts somewhere else in Europe, where at least we can sell the seats without these kind of repeat some disruptions Ukraine.

Speaker Change: It's clearly a big market for US we were the second largest airline in Ukraine before debutant illegal invasion, we would wish to go back into Ukraine.

Speaker Change: We have been disappointed however, the response of the Ukraine airports, who have basically refused to engage with us.

Speaker Change: In a post <unk>.

Speaker Change: Market in a kind of a post war.

Speaker Change: Marketplace, we would have and we have an extensive plan to go back into <unk>.

Speaker Change: Dave and Odessa, but we're not sure about the integrity of the runway of the airport ADESA, but certainly given levine.

Speaker Change: At this point in time I would have said we charged back in there with 5 million passengers in the first year growing to 10 million passengers, we did three or four years, but unless the airports come up at the moment all we're getting out of the airports here just paid to publish charges.

Speaker Change: If thats. Their response, then I think we would certainly charged back in there with a more extensive network, but at a more narrower I think we'd be looking at going back here, but maybe 1 million passengers a year, one rising to maybe two or $3 million and we simply wait for the Ukrainians to realize that nobody else has the seat capacity and if you want to recover and rebuild that economy very <unk>.

Speaker Change: Happily.

Speaker Change: Egregious profit, making by empty airports is not the way forward.

Speaker Change: If you're going to rebuild the Ukrainian economy quickly those airports need to carefully.

Speaker Change: Follow the example of many other European airports and aggressively discount.

Speaker Change: What is an empty airport.

Speaker Change: Just a reminder, there should be aggressively discounting to all.

Speaker Change: Airlines is just that Ryan there is the only year that will go in there on day, one from about 2006, our Turkey European cities, because we are the only one that has basis spread across those 26 to 30 cities.

Speaker Change: A couple of very lazy airport directors on Ukraine, who need to get above their fat losses.

Speaker Change: And do a deal with us greatly.

Speaker Change: If they want real radical growth and real radical economic.

Speaker Change: Building and development and your great.

Andrew: Thanks, Andrew next question please.

Alex Paterson: Next question guys you, Alex Paterson of Peel Hunt Alex. Please go ahead hi.

Alex Paterson: Hi, good morning, everybody.

Two questions. Please firstly would you mind just repeating what you said about FY <unk> Capex guidance. Please I just missed that.

Alex Paterson: And also just wanted to you you've been very clear on holidays that you would not be interested in offering them until the euro aircraft deliveries in the 2000.

Alex Paterson: Youll relationships with Otas that have signed agreements with you seem to be working well and that seems to be helping you I just wonder if you might be interested in.

Hoping them growing in regions, where perhaps that brands are so strong perhaps with people starting a booking by booking flights. When your website and then being directed through to theirs in order to book a holiday.

Alex Paterson: Okay, Alex Thanks.

Alex Paterson: The Capex guidance, obviously with the holidays question be careful there I didn't think we're not interested in holiday, but I think that the.

Speaker Change: Development of a ryanair holidays, Brian can only come when we like easyjet or others have significantly slowed our growth. We're not eventually growing headline traffic at all we're too busy getting on with growing headline traffic by four 5% a year, which in our case is now 10 10 to 15 million passenger growth at were used.

Speaker Change: Ryanair labs to transform the way, we deliver that service dramatically transforming our cost base, we've gone in house with all our op systems. The kiosks are transforming our airport and handling costs all of that kind of stuff. So we have too much going on we're very pleased with the OLED approved OTH deals so as far as the otas themselves they've been very.

Speaker Change: Complementary on the Beach love holidays of those about the growth they're enjoying are stimulating with the Ryanair approved <unk> and we're very content, while we're busy growing headline traffic for the next five or 10 years to let them monetize the holidays or let them work the holidays, if there's particular markets they want to work with us.

Speaker Change: Would be very happy to kind of take that onboard, but we want them to do the heavy lifting I really don't want to waste our time and resources running around placed at the Canaries are really starting to buy fucking monitor our hotel rooms are mom and pops booking holidays are organizing both transfers we've more to be getting on with if you look at our profitability even this.

Speaker Change: In a year where fares declined.

Speaker Change: We're reporting about $1 6 billion in <unk>.

Speaker Change: So we carry about twice each guest traffic and we're at about three times.

Speaker Change: But about three times that of profitability, so I am not placing the easyjet holidays problems, our jet to the holidays have a valuable it's a bit of a niche but it is a niche I think we'd only be interested in looking at our growth materially.

Speaker Change: Slows down, but if there's some things that they want to work jointly or Theres, new Mark just wanted to I had to break into we'd be happy to work with them on that.

Speaker Change: Maybe Jason might ask some of the areas the otas are agile.

Speaker Change: They don't need our hub, there's already evidence that they are moving into.

Speaker Change: Winter weekend breaks, which was less of volume.

Speaker Change: Prior to the agreements and they never really invested is that because of the potential sort of disruption there now morphing into that and they can they actually have more of an agility you could put things together.

Speaker Change: Could argue against those beds.

Speaker Change: Due to that and Thats, probably further disruption.

Speaker Change: Along with AI and how all these things are going to be presented in the years ahead, so theres, probably going to be another wave of that with the otas.

Speaker Change: Are able to take.

Speaker Change: Take our inventory and they are the experts in putting that together at the moment and they are probably much more agile than the more traditional them up even though.

Speaker Change: Okay. Thanks, Andy before we open it up for next year, that's a useful segway John Hurley here, who as you know is the head of Ryanair Labs I know John we just used throughout the conference call give us a couple of pointers on what labs is working on where we think the next development in terms of kind of <unk>.

Speaker Change: Customers improve customer experience of lowering costs are coming from.

John Hurley: Michael as you touched on the biggest piece of news from labs. The summer has been the rollout of our new system for ops Crewing and so as we called out rocks is giving us efficiencies right across the board from Te allocation to main troll reengineering to Crewing annually tying this all running your code run your rules and I'm, sorry efficiencies baked in so we're in a very good place there.

John Hurley: On the website from the Big news is balloons prime's two months going well for us, we're focusing heavily on customer service and customer service improvements, helping customer self serve to reduce our costs, which is important as it better.

John Hurley: Better price across the board and improve it going forward is going be fully 100% mobile boarding for dish on mobile App and that'll happen next November there to key main highlights were very hard and machine learning we are looking at J D.

John Hurley: On machine learning the biggest wins for some firms have been dynamic pricing of ancillary.

John Hurley: <unk> and <unk>.

Speaker Change: It'd be useful just along the rocks is to explain to people. What happens now for example, there is a disruption we now allocate with 600 aircrafts, how do we identify standby pilot or there is a disruption how does the machines are now determining which pilot which cabin crew standby crew gets called yes that is correct. So historically when we have a disruption with the crew people who.

Speaker Change: Our next available in list, sometimes that was alphabetical another deal way to do it knows computer we can actually look at who is the best source to cover assembly will not impact our schedule some selling weeks and following months all the cabin crew and pilots are limited to <unk> <unk>.

Speaker Change: Congress <unk> exports some of the name desktop and fully automated we're now recovering from major disruptions.

Speaker Change: Ours is of course, one days so it's been very very positive good okay, I shouldn't say too on Ryanair Prime I think one of the great Skeptics of this thing I thought it was a completely bullshit.

Speaker Change: But I had been persuaded as usual that I'm wrong in.

Speaker Change: The <unk> labs team of rights, what's different about this it's a member subscription service for 79 euros, we promised.

Speaker Change: Benefits multiyear all.

Speaker Change: Year long benefits of travel insurance seat selection et cetera, what was different in Ryanair. We said, we'd give you won a major seed sale each month in the first for a cost of 79 euros in the first three months, we delivered seed sales worth over 140 euros and Thats just the first three months, we have nine more of them to go we will deliver something of the order of over three.

Speaker Change: 400 euros in seed sales exclusively for Ryanair Prime members over the next 12 months I think actually the Cts will get better as obviously, we move over to peak period into the winter period, there'll be more availability and deeper discounts and those are absolutely secure and only opportunities, we're not including them in there.

Speaker Change: Details on particularly as prices rise.

Speaker Change: Ability to guide kind of payer are designed to seats is specifically for members has been something that I certainly I have been surprised that I mean, I thought we'd be lucky. If we sold 100 Ryanair Prime memberships were now up to 30079 years I think the only mistake, we made as we under priced.

Speaker Change: The prime membership mix should probably we should probably a charge about 99, sorry, but if we got the pricing wrong for the first 12 months and 479 euros Ryan their prime members get about three or $400 million and our telephone viewers in seed sales.

Speaker Change: And the numbers continue to increase modestly look it's never going to be huge.

Speaker Change: Probably at this point is then going to generate about $2 5 million.

Speaker Change: In prime membership fees in a company, where we're looking at making $1 6 billion and it is not huge but I think it is very critical to our ability to target seed sales to selected seed sales, where we don't want to do a big broad brush jumped the <expletive> out of pricing across all.

Speaker Change: All of the geographies I think Ryanair prime would be something that we will continue to look at work on it and again, it's a demonstration of what labs can do internally and will continue to do and next question. Please.

Michael: We have no further questions I'll hand back to you Michael for closing comments.

Speaker Change: Okay.

Speaker Change: Okay, that's great Tommy Bowe, our year and the team.

Speaker Change: I didn't cover Alex as Capex for them. So we just covered I was sorry apologies yes.

Speaker Change: I'm, assuming you missed the question at the start of the call from from Jamie in relation to phasing of Max PDP is over the next three years. So as I said as I said to Jamie Pdp's and delivery payments are going to be relatively light over the next couple of years and then start to phase open to FY 'twenty eight.

Speaker Change: So in the current year, we're looking at a capex figure around 2 billion, maybe a bit more.

Speaker Change: Internationally, that's maintenance Capex aircraft and various other odds and thoughts it will dip below $2 billion next year, and then I would say it's Jamie. These are all very broad brush somewhere between two five and $3 billion in FY 'twenty eight and then of course, when we have more ideas around engine shops, we will bring those numbers forward.

Speaker Change: Okay. Thanks, Dave Okay, ladies and gentlemen, thank you very much for your time. This morning, we have an extensive road shows we have added something like 12 teams on the road around the Ireland the UK Europe.

Speaker Change: East and West Coast U S and we're also going to do some online our teams meetings with Asian investors as well if you would like a meeting with US please come to us through city, our broker city Davies, our good Buddy and we'd be happy to include you either in luxury breakfast or set up a one on one meeting if anybody would like to come to doubling over the summer before.

Speaker Change: If we get to the AGM in September <unk>, the operation you're more than welcome.

Speaker Change: Thank you for your support over the last day of what was been a difficult and challenging 12 months, but I think as you can see in this morning's numbers, we're coming out with a.

Speaker Change: Strengthened.

Speaker Change: A very cash positive and we will be paying down debt aggressively over the next 12 months, so that will be hopefully debt free in the next 12 months still growing strongly.

Speaker Change: What would I hope I hope will be a more benign pricing and certainly more benign fuel environment as well. So I think hopefully we're set fair for a reasonably strong summer trading as long as Theres no unforeseen adverse development in the next couple of months. So look forward to meet you all on the road show this week and it's not that we're seeing in Dublin sometime in the next couple of months. Thank you very much.

Speaker Change: Everybody and thank you to the moderator for your time and assistance.

Speaker Change: Thank you. This now concludes today's call. Thank you for joining you may now disconnect your lines.

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