Half Year 2026 Ryanair Holdings PLC Earnings Call

And we published the results. This morning are Neil and myself have done a few minutes Q&A on the website. So I would direct you to the runner Dot com website for that while you're there book a low fare.

Quick couple of comments one is you see I I prefer to deal with Q2, because the H one was distorted by the very ridiculously strong Q1, and a weak prior year comp, but if you look at Q2, so traffic is up 2% because of the Boeing delivery delays.

They have improved in the last couple of months. We've now taken 23 of the 29 aircrafts that they should have delivered to us at the start of summer that gives you a little bit of headroom to increase traffic growth each year from $260 million to $207 million. So we should get growth of about three 5%. This year fairs in Q2 were up 7% very strong.

Speaker #1: Hello everyone, and welcome to the Ryanair Holdings PLC Q1, Q2, Q6 earnings release. My name is Nadia, and I'll be coordinating the call today.

That is the recovery of last year's 7% Fair decline and we think we will continue that through the remainder of the year of course, we do have slightly stronger prior year October prior year comps in the second half when we began to repair the OGA boycott or the impact of the OGA breakup was that significant.

Speaker #1: If you would like to ask a question, please press star, followed by one on your telephone keypad. I will now hand over to your host, Michael O'Leary, Group CEO of Ryanair Holdings plc, to begin.

Speaker #1: Please go ahead.

Speaker #2: Thank you, Nadia. Good morning, ladies and gentlemen. Welcome to the Q1 results conference call. I'm joined by the entire team here in London and on other phone lines.

The fare growth in the second half won't be as strong as in the first half, but overall on the year, we're pretty confident now we get back all of last year's 7% fair to China, maybe a little bit above that but it won't be much much more importantly, as always unit costs well under control only up 1% in the second quarter. Despite.

Speaker #2: We published the results this morning, and Neil and I have done a 30-minute Q&A on the website, so I would direct you to the RYANAIR.COM website for that while you're there.

Despite significant cost inflation on the air traffic control and a little bit on the engineering side clearly the lower hedge cost issue are playing a significant role in that and as a result, Q2 profit dropped 20% to $1 72 billion.

Speaker #2: Book a low-fare flight. Quick couple of comments. One, as you see, I'd prefer to deal with Q2 because the Q1 was distorted by the very ridiculously strong Q1 and the weak prior year comp.

Speaker #2: But if you look at Q2, traffic is up 2% because of the Boeing delivery delays. They have improved in the last couple of months.

Checking forward it kind of themes that would give you I think we wanted to cover in the call Boeing are doing a much better job of I think they asked us to take those could we take the aircraft through August September October we said didn't they would know you. She was at that stage, but we would work with them. We would take those aircrafts if they could deliver them they've delivered 23 of the trend.

Speaker #2: We've now taken 23 of the 29 aircraft that they should have delivered to us at the start of the summer. That gives a little bit of headroom to increase traffic growth this year from 206 million to 207 million.

Speaker #2: So, we should get growth of about 3.5% this year. Fares in Q2 were up 7%, very strong recovery. That is the recovery of last year's 7% fare decline.

Nine aircraft in the last three months, we get two more in November and then the last final four will be delivered in January February of next year. So we will have all 210 game changers in the fleet by the end of March next year are in advance of summer 'twenty, six which puts us well on track I think for traffic growth to 215 216 million passenger.

Speaker #2: And we think we will continue that through the remainder of the year. Of course, we do have slightly stronger prior-year or tougher prior-year comps in the second half when we began to repair the OTA boycott, or the impact of the OTA boycott was less significant.

In FY 'twenty, seven and that would be the first year since the Max grounding. You said you know, we're not dealing with Boeing delivery delays in the spring or disruptions to our summer schedule. So we think that will lead to.

Speaker #2: So the fare growth in the second half won't be as strong as it is in the first half, but overall on the year, we're pretty confident now we get back all of last year's 7% fare decline, maybe a little bit above that, but it won't be much.

Strong traffic growth and hopefully maintaining pricing and profit recovery into somewhere 26. The good news. This morning is we've taken advantage of our recent fuel weakness I should.

Speaker #2: Much more important is, as always, unit costs well under control, only up 1% in the second quarter. Despite significant cost inflation on air traffic control and a little bit on the engineering side, clearly the lower hedge cost this year is playing a significant role in that.

No we were 85% hedged out to March 2022 picture for this year at $76 a barrel down from $84 a fire last year today, we're able to announce that we're 80% hedged for FY 'twenty seven.

Speaker #2: And as a result, Q2 profits are up 20% to $1.72 billion. Taking forward, it's the kind of themes that we want to cover in the call.

Just under $67, a barrel that will be a very significant 10% savings on our fuel Bill will save us about 600 million euros. There next year, which I think will enable us to incentivize and stimulate growth.

Speaker #2: Boeing is doing a much better job. I think they asked us to take those units that could be taken to aircraft through August, September, and October. We said they were of no use to us at that stage, but we would work with them.

Speaker #2: We would take those aircraft if they could deliver them. They've delivered 23 of the 29 aircraft in the last three months. We get two more in November, and then the final four will be delivered in January and February of next year.

Also for what will be another.

Painful increasing and emissions the ETS taxes and viral taxes in Europe, where you're continues to damage its own competitive by taxi only intra EU travel, whereas all the out of date, the extra or the non EU travel our people arriving to and from Europe are exempt from these egregious environmental taxes balance sheet continues to strengthen.

Speaker #2: So, we will have all 210 Game Changers in the fleet by the end of March next year, or in advance of summer '26, which puts us well on track, I think, for traffic growth to 215, 216 million passengers in FY '27.

We paid back the 850 million bond in September we have to find the $1 2 billion bond we would pay in May and then we would be entirely debt free with a fleet of 640 aircraft we.

Speaker #2: And that would be the first year since the MAX grounding that we're not dealing with Boeing delivery delays in the spring or disruptions to our summer schedule.

We have hedged and I think that Treasury team has done a wonderful job start this year. The dollar was about 108 to the euro.

Speaker #2: So, we think that will lead to strong traffic growth and hopefully maintain pricing and profit recovery into summer 2026. The good news this morning is we've taken advantage of our recent fuel weakness.

We can on in recent months with some of the Trump spectacular to $1 24, and we've now hedged. The first 50 of our 150 firm Max 10 aircraft orders at 124.

It was about a 15% euro cost saving euro saving on Capex, although sorts 50 aircraft and we're looking for opportunities to extend those capex hedges and you can only do that or what the kind of strong balance sheet Ryanair house. The real underlying I think story, though is here that your capacity continues to be constrained and we will remain constrained.

Turkey, because the manufacturer of delivery delays Airbus fleet still largely grounded repairing engines a program that won't be completed until 2028 or 2029.

Therefore, I think as we add capacity next year, there's a reasonable prospect that we would grow traffic, we'll see modest fare increases coming through the system.

The one negative in Europe Europe has continued to fade on competitiveness and we've had the drag you report now is 14 months old he pointed to a whole series of areas, where Europe can and must be more competitive advantage.

Commit yourself to delivering on that competitiveness agenda, and then Don absolutely nothing for the last 14 months all of Europe's Airlines are calling for.

Two competitive initiatives one move the ETS environmental emissions trading system tax rates in line with core C O, which is what the non European Airlines are paying it is indefensible that Europe is harming itself by having these excessive environmental taxes move Etfs in line with core CFS and it would result.

Dramatic improvements in competitiveness and also lower fares for consumers traveling on their on air intra EU Inter EU Air services, and then second reform Europe's broken EPC services, we need the protection of oversized during national ATC strikes that we cannot have a single market. If it can be shut down every time some air.

Perfect control Union wants to go on strike it isn't much of an ask the legal mechanism already exists because in Spain, Italy, and Greece, they already protect overflights during ATC strikes and the ground the domestic flights, but as we all know in France, they protect a disproportionate amount of the domestic flights.

Hello, all the overflight.

This is the only sustainable and gondola age should take action and I think with what is a very impressive new transport Commissioner Timothy cost us he wants to reform, but everything ties in the dead hand of underlay in his office.

So she should stop talking about reform and competitive and start delivering is protected.

Protect over flights and then fixed staffing on the first wave of Hec stopping on the first wave of flights, which again, Germany, France and not say the UK are inexplicably short soft it's inexcusable the airlines, we roster standby pilot.

Pilots in standby cabin crew AGC. They just allowed the system to fall over and they put capacity, it's not acceptable air traffic control fees have gone up 14%. This year and we're still getting a shitty third rate third world service and it fondly and can't deliver competitiveness frankly should lead and be replaced by somebody conference.

And who can deliver competitiveness in Europe.

That I think the good news is we're seeing a sea change in environment of taxation at national levels.

Governments in Sweden, Hungary, Italy, Slovakia and region of Italy are all abolishing their environmental taxes, and we are switching an enormous amount of capacity away from high tax a high tax economies like Germany, France and the UK.

And the reason is increasing a P. D by another two pounds in April and moving that capacity to Sweden, Hungary, Italy, et cetera, where governments again is there a policy in the environment taxes, and they're all to incentivize the traffic growth.

We wanted to reward those countries that are incentivizing growth and penalize those countries like Germany, France, and the UK who are.

Incentivizing tax increases and damaging growth.

And that will continue but I think so.

Fact that countries like Sweden, the Homo Greta Thunberg and flight shaming five years ago are now have worked out there a policy in the environment of the types of this gives us hope and I think some degree of optimism about the way forward is not penalizing Europeans he's a polishing those taxes and allow airlines like Ryanair.

This is unsustainable and vanderlei should take action. Uh, I think with what is a very impressive, new transport commissioner at City, Costas, he wants to reform but everything dies in The Dead Hand of vonder Lay's office. Uh so uh she should stop talking about reform and competitive and start delivering it uh protect overflights and then fix the Staffing on the first wave of ATC Staffing on the first wave of flights which again Germany France and gnats in the UK are inexplicably short staffed. It's inexcusable the airlines we roster stand by

We invest heavily in new engine technology, our new Max change will it carry 20% more passengers, but burn 20% less fuel per flight to a 14% reduction in fuel and emissions on a per seat basis other than that there's also some other Goldman did competencies the Irish government, which was elected last year on a program.

Pilots and sound by cabin crew ATC. They just allowed the system to fall over, and they cut capacity. It's not acceptable. Air Traffic Control fees have gone up 14% this year, and we're still getting a shitty third-rate, Third World service. And if Bonder Lane can't deliver competitiveness, frankly, she should leave and be replaced by somebody competent who can deliver competitive service in Europe.

Abolish the Dublin airport comp of 12 months leisure nothing done we have a do nothing prime minister and the do nothing Deputy Prime Minister both of whom have been sitting on their offices for the last 12 months talking about passing legislation. Despite the fact, they have a 20 seat majority they're now talking about legislation might be moved by the end of 2026 R&R growth cannot.

But these are do looking politicians at a half of 'twenty seat majority they should pass the legislation scrapping to cap a delta in airports I before the end of 2025 and allow the airlines Ryanair and the other airlines to get on with growing traffic at Dublin Airport. The way, we're growing and we're adding aircraft and Shannon in court and so.

Away from high tax, uh a high tax economies like Germany, France, and the UK. But Rachel reads is increasing APD by another 2 pounds in April and moving that capacity to Sweden Hungary Italy. Uh Etc where governments are getting their abolishing the environmental taxes and they're also incentivizing traffic growth. So we want to reward those countries that are incentivizing growth and penalize those countries like Germany, France, and the UK who are, um, uh, incentivizing tax increases and damaging growth.

Uh, and that will continue, but I think.

There's always some stupid Goldman and still being competent politician holding back the growth.

Actually there's a better politicians in Sweden, Italy hungry.

Go back Yeah, all of whom are working closely with Ryan here too.

Abolish doctors and allow us to grow strongly I think we're looking forward.

The fact that countries like Sweden the home of Greta thunberg and flight shaming 5 years ago are now have worked out their abolishing, the environment of taxes gives us hope and I think some degree of optimism that the way forward is not penalizing. Europeans, it is abolishing those taxes and allow Airlines like Riner.

Particularly with the improvements Boeing have made in the deliveries.

Quality underdog the deliveries are Kenny Ortenberg in CFT pulp are doing a terrific job are they all got they've gone up from rate Turkey to rate 42 in October I would think they FAA will increase up to <unk> 46 in March April next year. They are gradually catching up on the delivery delays, we are pretty confident that.

They have certified the Max seven even with the current government shutdown in Q2 next year. The Max 10 in Q3, which would be about six months in advance of our first 15, Max 10 deliveries in the spring of 2027. So we have 29 aircraft delivered this winter that enables us to grow to 215 million passengers in FY 'twenty seven the first 15 Max chains.

To invest heavily in new engine technology. Our new Macs 10s will carry 20% more passengers, but burn 20% is less fuel per flight, so a 40% reduction in fuel and Emissions on a per se basis. Other than that, there's also some other government incompetencies the Irish government which was elected last year on a program to abolish the Dublin Airport. Camp, 12 months later, nothing done. We do not think prime minister and I do nothing Deputy Prime Minister uh both of whom have been sitting on the rashes for the last 12 months talking about passing legislation despite the fact they have a 20 seat.

Coming into spring of 'twenty, seven will enable us to grow to about 225 million passengers by FY 'twenty eight and then we're off and running on what I believe will be an eight to 10 year program to grow from 207 million passengers. This year to over $330 million 300 million passengers by 20 to 34.

Currently we're making a profit of approximately 10 euros per passenger I think it's reasonable to suppose that that profit will rise from 10 towards 12 or 14, a profit a 14 euros profit per passenger over the next 10 years, there will be one or two curve balls in the middle of that we are a cyclical industry, but we have a.

Majority, they're not talking about legislation, might be moved by the end of 2026 Ireland, and growth cannot wait for these, uh, do nothing politicians. Uh, they have a 20 seat majority, they should pass the legislation scrapping, the cap at Dublin Airport, uh, before the end of 2025 and allow the airlines Ryan Air and the other airlines to get on with growing traffic at Dublin Airport, the way we're growing and we're adding aircraft in Shannon and core. So there's always some stupid government and some incompetent politicians holding back the growth. But thankfully, there's a better politicians in Sweden is Italy. Hungary Slovakia, all of whom are working closely with Ryan are to uh abolish taxes and allow us to grow strongly. I think we're looking forward.

Our strong balance sheet, we will have zero debt in may of next year and I think we are.

Poised for very strong growth, particularly if the European economies continue to lag or a lagging growth people will get more and more price sensitive I will ask rich to ryanair from high fare competitors elsewhere. So I have never been more excited about the growth outlook for the next four or five years I think we have a number of chi.

<unk> in moving politicians do a competitiveness agenda.

But within that Ryanair is going to grow strongly unprofitably here I think for the next.

Four years up to 2030 and with that I hand over to you anything you want to highlight at the P&L or the balance sheet.

Particularly with the with the improvements going have made in in the deliveries the quality and of the deliveries uh Kelly orenburg and Stephanie, Pope are doing a terrific job uh they have got they've gone up from rate, 38 to 842 in October and we think they FAA will increase at the rate. 46 in uh March April. Next year, they are gradually catching up on the delivery. Delays, we are, they're pretty confident that they'll certify the max 7, even with the current government shutdown in Q2 next year at the max 10 in Q3, which will be about 6 months in advance of our first 15 Max 10 deliveries in the spring of 2027. So we have the 29, aircraft delivered, this winter that enables us to grow to 215 million passengers in FY. 27, the first 15 minutes.

Maybe just focus again on the on a couple of things in the quarter and in the half Firstly as you already pointed out costs put in an excellent performance up just one on a per passenger basis that was down to where strong fuel hedging, which very much helped offset double digit increases in ATC and environmental costs.

Max 10s coming in the spring of 27 will enable us to grow to about 225 million passengers by FY. Uh, 28. And then we are off and running on what I believe will be an 8 10 year program to grow from 207 million passengers this year, to over 330 million, uh, 300 million passengers by 2034

We're still guiding modest unit cost inflation for the full year, while it's modest it remains somewhere between one and 3% on a full year basis, probably a little bit higher of Santander. The 1% that we had in the first half in the second half of the year, we have extended our hedges into FY 'twenty seven as Michael said, we've also extend this off.

Our opex hedging into into next year at $1 15, compared to 111 on the Euro dollar. So we're locking in significant price savings next year and that will go a long way to help offset a.

Joan bump on our environmental Etfs are next next year somewhere from about one 1 billion this year to somewhere between one four and $1 5 billion.

Next year.

She's rock solid triple being close races, 610, unencumbered aircrafts on in a very strong position now to be debt free.

May of next year, which I, which I think there's a great place to be also we're locking in a euro savings on our IMAX Tan.

Currently, we're making a profit of approximately 10 euros per passenger. I think it's reasonable to suppose that that profit will rise from 10 to 12 or 14, uh, profit, uh, 14 profit per passenger over the next 10 years. There will be 1 or 2 curve balls in the middle of that. We are a cyclical industry but we have a strong balance sheet. We will have zero debt in May of next year and I think we are uh, poised for very strong growth. Particularly, uh, if, uh, the European economies continue to lag or to lag in growth people will get more and more price, sensitive and will, uh, bridge to Ryan are from higher competitors elsewhere. So, I have never been more excited about. I think the growth outlook for the next 4 or 5 years, uh, I think we have a number of challenges in moving politicians to a competitiveness agenda, uh, but within that Rin area is going to grow strongly and profitably. And I think for the next, uh, 4 years up to 2030 and with that Neil, I want to hand over to you, anything. You want to highlight in the p&l.

Capex moving forward with the 35% hedge in place, where we've hedged 35% at a firm order. So that's 150 aircraft at 124 buybacks moving along at a nice pace. We're pleased with the pace that the brokers are moving asset they managed it well true indexation. So we're just over.

On the balance sheet, yeah, I may be just focusing again on a couple of things in the quarter and in the half. Firstly, as you already pointed out, costs put in an excellent performance, up just 1% on a per-passenger basis. That was down to our strong fuel hedging, which very much helped offset double-digit increases in ATC and environmental costs.

35% off the way toward off enough thrown out to the back end of 2026, and then finally, the last thing I'll point to a business as usual, but we've announced an interim dividend. This morning of 19.3 Euro cents, which similar to last year and we paid at the end of February.

That's all I wanted to touch on Michael.

Hey, Thanks Neal.

And that you would open up to Q&A. Please.

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He painted yourself to two questions.

The first question is how are you guys of J P. Morgan. Please go ahead.

Hey, good morning, Mike Good morning.

First question on the.

Good morning, Yeah, just on the key free fast maybe you could provide us with what you are currently tracking for the quarter and if you've seen any changes strengthening or weakening around that number in the last few months and then second question on.

On the online travel agents that clearly the fact comparatives are normalizing into the Q3 versus last year I was wondering if.

We have extended our Hedges into FY, 27, as Michael said, uh, We've also extended our Opex hedging into into next year, um, at at 1:15 compared to 111 on the euro dollar. So we're locking in significant, uh, price savings next year and that will go a long way to help offset, uh, a jump up in our uh, environmental ETFs. Uh, next next year, for somewhere from about 1.1 billion, this year to somewhere between 1.4 and 1.5 billion. Uh, next year, uh, balance sheet, rock solids, Triple B plus races 610 on encumbered aircraft and in a very strong position. Now to be debt free uh by May of of next year which which I think is a great place to be. Also we're locking in uh Euro savings on our Max 10. Uh, capex. Moving forward with the 35% hedge in place, where we've hedged 35% of the firm orders. That's 150 aircraft at 1:24 buy back moving along.

If you think youre still getting ash like any actual realizable uplift or specific tailwind from those official partnerships or is this just like fully passed us now when we're back to a.

At a nice Pace. We're pleased with the the pace that the, uh, Brokers are moving at, uh, the, the managed it well through, uh, indexation. So, we're just over 35% of the way through that and that will run out to the back end of 2026.

So a more regular kind of pricing cycle, just fully dependent on supply demand in any quarter. Thanks a lot.

Yeah. Thanks, Harry I mean, I wouldn't want to see that where we think we are in Q3 parents because so much of it is dependent on the close in bookings at Christmas over the Christmas and new year period, but October is strong up on last year November has anything been weak are slightly down on last year's fares and Christmas at the moment is booking strong ahead of last year on fares I think.

And then finally, the last thing I'll point to, uh, business as usual. But we've announced an interim dividend this morning of €0.193, which, similar to last year, we paid at the end of February. And that's all I wanted to touch on, Michael.

Hey, thanks to you. With that, Nadia will open up to Q&A, please.

All I wanted to I wouldn't want to go any further than give you the kind of.

We have moved from being whole foods would be now confident that average fares will recover the full seven year fair decline from last year and this year's numbers.

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The first question goes to Harry Goers of JP Morgan. Please go ahead.

We were up 13% average fares in the first half of the year, we have tougher prior year comps in the second half of the year. So you won't see I think 7% fare increases in Q3 or in Q4, but I think rounded out for the full year, we're pretty confident now we will be up average shares to be up seven maybe we might get to 8%. If we have a strong <unk>.

Hey, good morning, Michael Morning, Neil. Um, first question, just on the good morning. Yeah, just on the Q3 fairs. Maybe you could provide us with what you're currently tracking for the quarter. And if you've seen any changes strengthening or weakening around that number in the last few months. And then second question, um,

Christmas, but again, we need to see how those close in figures.

Book.

And I think that is what leads us.

With a reasonable degree of competency of strong recovery this year, but we cant put a number on it yet because its so heavily driven by <unk>.

And the new year holiday bookings at the.

On the online travel agents. That clearly the the fair comparatives are normalizing into the Q3 versus last year. I was wondering if um, if you think you're still getting actually like any actual realizable uplift, or specific Tailwind from those official Partnerships, or is this just like fully passed us now when we're back to

New aircraft from Boeing will give us gives us the capacity to add a few extra is there over that Christmas new year period, that's why we've been able to bring the traffic up from two six to $2 7 million. This morning on the Otas at the big impact on us on the OTI boycott last year was through the first half of the year. When you had lots of people Oh.

To a more regular kind of pricing cycle. Just fully dependent on supply and demand in any quarter. Thanks a lot.

Hawaii kind of completely thought would be price sensitive there for their book their holidays directly with us they didn't a lot of the moves that the tour operators last year to the jet twos and Easyjet holidays, they've come back to us in the first half of this year do you see that reflected a weak prior year comps and a strong H one we see some of those kind of tour operators. These jet holiday.

Yeah, thanks, Harry. I mean, I wouldn't want to split it out where we think we are on Q3 fares, because so much of it is dependent on the closing bookings during the Christmas and New Year period. But, um, October is strong, up on last year. November is a little bit weaker, slightly down on last year's fares, and, uh, Christmas, at the moment, is booking strong, ahead of last year on fares.

I think all I'd want to go, I wouldn't want to go any further than give you the kind of

Good to talk to you about bit more price sensitivity in their bookings through the first half of the year.

I think it's because that traffic against the Otas have moved our traffic back to us they need our low fare access and.

So, but that's not a key feature in the second half of the year. The Otas are a lot less impactful in Q3 and four and we are therefore, we didn't have the same decline in air fares in Q3, and four last year, we got much we.

We have a tougher prior year comp, which is why we think again the second half of the year you won't see 7% our favorite increases it would be a little bit less than that but overall in the round, we will come out at.

There's a sense of the full year anything you want to add anything to that.

Two our otas.

Maybe like.

Yeah.

That covers it all.

Like slightly thats.

Uh, we we have moved from being hopeful to being now confident, that average fairs will recover. The full 7-year Fair decline, uh, from last year in this year's numbers. Uh, we're up 13% average fairs in the first half of the year, we have tougher prior year comps in the second half of the year. So, you won't see. I think 7% fare increases in Q3 or in Q4, but I think rounded out for the full year, we're pretty confident. Now, we'll be up average years to be up 7, maybe we might get to 8% if we have a strong Christmas, but again, we need to see how those close in figures, uh, book. Um, and I think that is what leads us to, you know, with a reasonable degree of confidence to see a strong profit recovery this year, but we can't put a number on it yet because it's so heavily driven by, uh, Christmas and the new year, um, holiday bookings. Uh, the new aircraft from Boeing will give us gives us the capacity to add a few extras there over that Christmas, uh, New Year period, that's why we've been able to bring the traffic up from 206 to 207 million this morning.

First in November for Us.

Christmas for example.

So nothing really to add there at all and I think we are through that sort of tail end.

Of the Otas and I don't see because that would be I mean.

Yes, I just think its as you say whats co preferred.

Sir.

Yeah.

The prior year comparable thanks, Eddie Thank you Harry next question. Please.

The next question to James Hollins of Exane BNP Paribas. Please go ahead.

James Hi.

Hi, Mark.

I'll start one for Neil actually just on the ex fuel unit cost improvements serves only up 2%.

I think nice who was the $30 million Q2 declined year on year amongst some distribution. Another I'm, assuming that's lower distribution cost so a lot of disruption costs or am I missing something else.

The decline in airfares in Q3 and Q4 last year has been significant.

Within that particular line and secondly, Michael clearly.

Using this platform is ever.

Important across an.

On EU progressing Hyperflex et cetera, maybe just give us an update on what this new transport minister might be able to achieve and secondly, whether there's any update on the sort of comedy baggage regulation anything out right.

Okay.

Cause somebody to have Tracey come in after me.

Yeah sure on the marketing language like here, you're particularly referring to some of that sound to lower to six one lots of disruptions, but we're keeping them below the tree hours equally we've got up to $60 million of peak 60 million people a week coming through in social which is keeping our marketing costs are way down a little some of it.

A bit of timing, we will do a bit more marketing over the Christmas period, and then offsetting that somewhat would be higher input costs for the onboard spend which is going particularly well from an ancillary perspective.

We have a tougher prior year comp which is why we think again the second half of the year you won't see 7%. Uh, fare increases. It would be a little bit less than that. But overall in the round will come out at uh, fairs up to 7% of the full year. Eddie you want to add anything to that once you 2 or ot8 know. I mean, like, um, as I said, there are covers at all about what is happening, like slightly less, and in terms of fairs in November, of course, you know, the Christmas for happy. So, uh, you know, nothing really bad there at all. And I think we are true that sort of tail end of the OTAs. And I don't think there's going to be any further up yet, but I just think it's as you say, much tougher for our companies out there. Um, uh, on on, on the fire compilable. Thanks Eddie. Thank you. Harry next question please. And you

The next question goes to James Holland of X, a BMP power head.

James. Hi.

Okay, Thanks, and on that its commission artistic costs, that's who's the transport can make sure. It has had a really impressive start.

One of the most notable things is they finally moved on the.

Infringement proceedings against Spain over the Crazy Spanish bank fines that were levied only on the low fares airlines in Spain, but not on the high fare airlines.

Geordie illegal in breach of EU regulation, 1008200 age, which guarantees the airlines freedom to set prices free from a government interference or regulation and he goes want to reform ATC.

I'm also uh I'll start 1 for Neil actually just on the the ex fuel unit cost performance. So I was only at 2%. Um, I think noticeable was the 30,000 Q2 decline year and year, marketing, distribution and other. I'm assuming that's all lower distribution costs so a lower disruption costs or or am I missing something else? Um, within that particular line and secondly, Michael Kelly, um, using this platform as ever to to get your point across on, uh,

I think a lot of commissioner <unk> frustration there all expressed frustration at how little it comes back out of bundle Dad's office at.

On EU progress on overflights, etc. Maybe you could give us an update on what this new Transport Minister might be able to achieve. Secondly, is there any update on the sort of common baggage regulation they're looking at? Thank you.

There is a real dead hand of Germany competent at the top of the European Commission and either she could deliver reform it delivered a form of competitiveness or go perhaps it would be replaced with someone who can actually do something and I would like to say, we should get an Irish politician everybody's given it was Peter Sutherland.

Who originally deregulated in air travel, but given the and.

Lack of action from the Irish politicians on the dumping Airport, Matt Dublin Airport cap.

Wouldn't be recommending any of our Irish politicians, either at the EU Parliament as these dates won't I E.

Okay, so you can come in after you. Yeah, sure on on on on the marketing lines, I think you're particularly referring to some of that down to lower eu261. Um, lot lots of disruptions. Um, but we're keeping them below the the Tree hours equally we've got up to 60 million a peek, UH, 60 million people a week coming through on social, which is keeping our marketing costs. Uh, way down a little, some of its a bit of timing. We we'll do a bit more marketing over the, the Christmas period and then offsetting that somewhat would be higher input costs for the the onboard spend, which is going particularly well from ancillary, uh perspective.

A bunch of clowns, and we should be not surprised on the surface that they come out with crazy ideas, one of which is now that everybody should have the right to bring two free bags on board an aircraft. We have put like you pointed out that there isn't room on board. The aircraft for two free bags offer alternate nine passengers that doesn't seem to be a detailed that they've missed.

We've also pointed out that actually looks like one of the greatest things here at.

Limiting people to bringing a one free bag on board and that was the boiling judgment to ECJ judgment in 2014, we do allow half the passengers who are priority going to bring a second carrier free carryon bag, that's about as much capacity as the aircraft has.

Okay, thanks here. And on that, it's commissioner Tity Cassat, who's the, the transport commissioner, uh, has had a really impressive start, uh, you know, 1 of the most notable things is, you know, they finally moved on the, uh, uh, the infringing procedures against Spain over the, uh, the crazy Spanish bag finds that will there be only on the law fairs Airlines and Spain but not on the high Fair Airlines. Uh, it clearly illegal. It's, uh, in breach of EU regulation 100008200008 which guarantees the airlines freedom to set prices free from a government interference of Regulation. Uh, he does want to reform ET

But what the European partners now a part of this is just that the declamation under typically cost us He's looking for reform of U 261, which all about bringing product compensation up from three origination for arginase, which does make sense Department then pushes back with some ridiculous.

No suggestion I to free bags on board what that would do is they create huge queues at European airports. So as everybody starts smoking with two bags through airport security I think like you have an American airports, where you know you take forever to get through security, because they're all bringing five and six attached to their persons through the airports if at all.

I mean inevitably flight delays because bags that don't fit the aircraft, but if we taken away at the gate on putting the older. The aircraft's you'd have more aircraft missing their slots and you would just go the whole system, but of course, a bunch of doing it takes our elected to the European Parliament working worrying about the day to day details of how people move they only work about three.

You see, uh, but like, I think a lot of Commissioners, he's frustrated. Uh, they're all expressed frustration and how little comes back out of vander's office, uh, you know, there is a real Dead Hand of Germany incompetent, uh, at the top of the European commission, and either she should deliver reform or deliver reform, and competitiveness, or go prefer to be replaced with someone who can actually do something. Um, I would like to say, we should get an Irish politician in there, giving it was Peter Sutherland. Uh, who originally deregulated air travel but given the lack of action from the Irish politicians on the Dublin Airport, mad Dublin, Airport cap, I wouldn't be recommending any of our Irish politicians either at the EU Parliament as is, it won't. Uh, is a, you know, a we elect, uh, a bunch of clowns, and we should be not surprised in the circus that they come out with crazy ideas uh, 1 of which is now that everybody should have the right to bring 2 free bags on board. An aircraft, we have politely pointed out that there is a room on board. The aircraft for 2 free bags for

The days of week anyway.

And wouldn't be all that sensitive at the best of times to efficiency. This is why.

In America Innovates trying to replicate in Europe booking regulates and why Draggy.

Oh 18 about 14 months ago, we need to get more efficient in Europe at the start by starting point would be you know stop issuing new bullshit regulations.

For 189, passengers. That does seem to be a detail that they've missed. Uh, We've also pointed out that actual fact, 1 of the greatest, uh, things here that limiting people to Bringing on 1 free bag on board and that was the Wheeling judgement to ecj judgment in 2014. We do allow half the passengers to a priority going to bring a second uh, carry free carry-on bag that's about as much capacity as the aircraft has.

<unk> by Idiots in the European Parliament.

Start, making Europe more efficient if you really want to deliver efficiency for consumers of air travel in Europe, and competitiveness, a bullish environment taxes or at least bring them in time of course see it and fixed air traffic control the European partner will be much better off waste spending its time reforming air traffic control or protecting over fights on the single <unk>.

Markets than they were designing new and old Presley impractical, and only Implementable regulations.

Regulations, allowing passengers to bring two free bags onboard an aircraft, whereas there isn't room for the bags they don't fit.

Thanks, James next question please.

The next question guys, Hey, Jamie Rowbotham Deutsche Bank, Jamie. Please go ahead.

Hi, Michael two from me first on growth. The first one on FES, obviously, great to see you, making back what you lost from the OTI issues, but on an underlying basis the pricing is broadly flat.

I think the scenario you're implicitly guiding to for this winter when the comps normalize so as we look out to next summer.

Regarding Poland, Italy, Ireland, you'll shrink in Spain, Germany, France overall, youll grow seats at about 4% it looks like the industry will do 3% to 4% again as well that being the case I was a bit surprised to hear you talking about modest fare increases coming through the system.

Especially as you hinted that Ron I will likely be passing some of its fuel cost decline.

Where you know, you take forever to get through security because they're all bringing 5 and 6 bags attached to their persons through the airport. It would also mean inevitable flight delays because bags that don't fit in the aircraft would have to be taken away at the gate and put in the hold of the aircraft. You'd have more aircraft missing their slots and you would just gum up the whole system. But of course, the bunch of lunatics elected to the European Parliament wouldn't worry about the day-to-day details of how people move. They only work about 3 days a week anyway, and wouldn't be all that sensitive to efficiency at the best of times. This is why, you know, America innovates, trying to replicate in Europe, while Europe f****** regulates. Uh, and why Draghi, uh, has pointed out 14 months ago, we need to get more efficient in Europe. And the best starting point would be, you know, to stop issuing new bogus regulations, uh, invented by idiots in the European Parliament, uh, and start making Europe more efficient if you really want to deliver efficiency.

Do you like growth. So we did not pay for us to try to quite carefully when thinking about the direction of your pricing next summer.

Second one you've announced $25 million of annual investment today to accelerate that and first obviously recruitment for the next three years.

Also talked previously about setting up walnuts to in house engine maintenance shops is there any update on that project.

And the sites are there any other non aircraft investments for growth that we should have on all right. Thanks a lot.

Thanks, Jamie I'm going to ask Ed you can deal with the growth question that might ask Tracy accounts come in on that Tracy about coming on.

Efficiency for consumers traveling in Europe and competitiveness should abolish environmental taxes or at least bring them into line with CORSIA and fixed air traffic control. The European part would be much better off wasting its time reforming air traffic control or protecting overflights on a single market than they would be designing a new and hopelessly impractical and unimplemented regulation. This would delay allowing passage to bring two free bags on board an aircraft where there isn't room for the bags and they don't fit.

25 would be not the first office around the engine shops update Eddie I think what did you have any.

The next question goes to Jamie Rowbotham of Deutsche Bank. Jamie, please go ahead.

Yeah, I mean, if you look out into the summer next year.

Close to 75% of our growth will be in Italy, Poland.

Uh huh.

Hey, Mike.

You bet.

What's happened initially we've opened two two.

Our faces in property.

Corona base will open we've got additional aircrafts three additional aircrafts on at Butler.

Aircraft onto the Cracker and then you'll see as we begin to substitute decided that we're not growing in Spain, we're not growing in week those failing to meet repo airports in Spain are under utilized by about 70%, but we continued to grow in malaga in Alicante, where we will have a.

Probably about 20 aircraft and both of those bases next year that'd be pretty much maxed out already.

Good morning slots with the kids.

Places like Madrid. So it has got to grow Apache of Barcelona is full.

The way. This is the way this is playing out in terms of if you look at our competitors.

Hi, Michael. Um, two from me, both on growth. Um, the first one on Fed. Obviously, great to see you making up what you lost from the OTA issues, but on an underlying basis, the pricing is broadly flat. And that's, I think, the scenario you're implicitly guiding to for this winter when the comps normalize. So as we look at next summer, you're growing in Poland, Italy, and Ireland; you'll shrink in Spain, Germany, and France. But overall, your growth sits at about 4%, and it looks like the industry will do 3% to 4% again as well. That being the case, I was a bit surprised to hear you talking about modest fare increases coming through the system, especially as you hinted that, right now, you’re likely to be passing some of its fuel cost decline on to stimulate growth. So would it not pay for us to tread quite carefully when thinking about the direction of your pricing next summer? Um, the second one, you’ve announced $25 million of annual investment today to accelerate cadet and first officer recruitment for the next three years. You've also talked previously about setting up one or two in-house engine maintenance shops. Is there any update on that process?

Theres sort of cost inflation.

And that's going to drive for Enzo was the gap between us and our competitors widens out a unit cost basis and that gives us the opportunity.

Project. Have you chosen the sites? And are there any other non-aircraft investments for growth that we should have on our radar? Thanks a lot.

To take advantage of what we believe will be.

I feel like Theres at least rising to some extent device is going to be towards that.

And we continue to grow as I say, 75% of it.

Across Italy, UK, Poland, Albania, and then a smattering of one aircraft.

The increase is across a wide range of base wherever continue to get low cost deals, but like I could've allocated those 20 aircraft three times over.

On the appetite that's out there for.

Particularly the stability that Ryanair brings on the longevity in to those markets.

Just add to that point I mean, if you look at the non X fuel unit cost inflation in our competitors, but whether it's easy to get with Lufthansa Air France. KLM you. They are really struggling to contain unit comps and that I think puts pressure on the next year to get fair to cover these that unit pulse. The legacy carriers are also facing a much bigger penalty.

Thanks, Jimmy. I'm going to ask Eddie to deal with the growth. Uh, question. I might ask Tracy, uh, man to come in on the treasure Road, come in on the, uh, 25 million. The first officer and on the engine shops update. Eddie Growler 2026. Yeah, I mean, if you look at into the summer, uh, next year, I think just, uh, close to 75% of our growth will be initially Poland, Albania and uh and UK. I mean like we've uh uh, if you know what's happening in initially, we've opened 2 new. Um, we've got bases in traany, we've uh, khurana base will open. We've got an additional aircraft free additional aircraft on it. So Bodin, we additional aircraft going into the crack of and then you see, as we begin to, like, it's not to say that we're not growing in Spain, we're not growing in Regional Spain. I mean, refill Air Force in Spain or under utilized by about 70%, but we continue to grow in Malaga and Alicante, where we will have, uh, probably about 20 aircraft in both of those places next year and they'll be pretty much maxed out on early um early

In terms of the control of the free Etfs allowances and there's a much bigger impact on Lufthansa Air, France, and IAG and I think the pressure on our fears he is going to be upwards for the next year or two we have a much better unit cost discipline and I think our fares would trend up behind them. Despite the fact that we've already bank up to $650 million in fuel cost savings next year.

Morning uh slots. We continue to grow places like Madrid. So it is getting more patchy and Barcelona is full but yeah, yeah, the way this is play the way this is playing out. In terms of you, look at our competitors, you know, like and their sort of cost conflation. Um and that's going to drive fairs up while the gap between us and our competitors white, who's going to use.

Tracey do you want to touch on the first officer recruitment issue and the progress on engine shops.

Attrition rates are probably at the lowest we've ever seen so we would probably slow down the recruitment Stacy that's probably slowed down 500 she'll be able to defend itself. It has been so given the long lead time of promotion to captain stands at four to five years commencing equivalent accident ppas for the Max 10 deliveries, so there'll be a carry cost of about $25 million.

Okay.

Yeah.

Progress on the engine shops, and we're close to selecting the air Force and MRO.

<unk> Shao Lee Hot we will open too so that the allowance is 200 engines in each and shell this election payments ongoing there's nothing in our content.

To call faces, and that gives us the opportunity, uh, to take advantage of what we believe will be, uh, I think like fares at least rising to, to some extent. Devices are going to be towards that. Um, and we continue to grow, as I say, 75% of it, across Italy, the UK, Poland, and Albania, and then a smattering of, uh, one aircraft increases across a wide range of bases where we continue to get low-cost deals. But like I could have allocated those 29 aircraft three times over, you know, based on gaps, right? That's out there, uh, from particularly the stability that, uh, Ryanair brings on the longevity into those markets.

And so this year.

Buffy staffing something next year.

So something on the SM shocking.

We're in advanced discussions with GE and CFM spares packaged goods.

And we would hope to have announcements if not before Christmas maybe early in the new year.

The next question Thanks, Jamie.

The next question guys, Hey, Jared Caso of UBS. Please go ahead.

Good morning, everyone.

Cause I was quite interested to hear you say that you think the profit for tax could go as high as 14 euros at least over the next few years.

You've given some commentary on pricing and costs, but just some color on what gives you that confidence assuming we've got like a stable J D pay up environment, There's no doubt.

And then I guess.

And then.

You've obviously spoken about a number of countries like Germany, France and.

It's easy jet with left hands, Air France, KLM, you know, they are really struggling to contain unit costs and that I think put pressure on them next year to get fairs up to cover these uh unit costs, the Legacy carriers are also facing a much bigger penalty in terms of the withdrawal of the free ETFs allowances, it is a much bigger impact on the Fanta, Air, France and iag, and I think the pressure on Affairs is going to be upwards for the next year or 2. We have a much better unit cost discipline, and I think our fairs will Trend up behind them, despite the fact that we've already banked up to 650 million in fuel cost savings next year, at Tracy. Do you want to touch on the, uh, the first officer recruitment issue and the end of progress on engine shops. Yeah, so it's written rate for probably at the lowest we've ever seen. So we probably slow down the recruitments this year of cadets, probably to about 500. We should be up at about 12,000, so given the long lead time for promotion to captains, being about 4 to 5 years, for commencement recruitment now for MP cares, for the max 10 deliveries so they'll be a carry

So some comments on the U K, but it does look like you're still continuing to grow in the UK, which I thinks about a fifth of your capacity and if I'm not mistaken you kind of grow in sum up all this sounds a thing. So why is it still attractive to you and then what are your thoughts on the upcoming budget on the 26. Thanks.

Cost of about $25 million per animal to 2030.

Okay, maybe I'll ask Andy to the second half the question on U K growth. This year remember the Apd increase doesn't kick in until April of 2006, So you eat but it's coming.

And can you drop progress? So, just on the engine shots, um, were close to selecting our first. Um, mro for, uh, shop. We have, we will open 2 so that will allow us to do 200 engines in each. Um, shop, the selection period is ongoing. There's nothing in that context, uh, for this year. But we will probably start paying something else for next year. But but we'll close to an instance, something on that very shortly.

Proprietary if you go back to the kind of the broad brushes are my favorite back of the envelope. The real driver I think of our industry in Europe for the next four or five years, there's capacity constraints.

Gone through 25, 30 years, where there was news to airlines being setup low fare airlines that legacy as we're setting up low fare subsidiaries everybody had new aircraft deliveries.

We would hope to have announced, if not before Christmas, maybe early in the new year.

Next question. Thanks Jamie.

The next question goes to Jared Castle of UBS. Please go ahead.

There is very different capacity growth across Europe.

Um, good morning everyone. Um, my

This year next year or for the next three or four years nobody has.

Any significant aircraft orders with the possible exception of Ryanair, we just had some orders and they've kind of got they're desperately trying to defer those orders now which means their profits implode because all of their profits come from musical or Ponzi like a sale leaseback profits being recognized in our P&L.

Hello. I was quite interested to hear you say that. You think you know the profit for PAX could go as higher as 14 euros at least over the next few years. Um and you've given some commentary on pricing and costs but yeah just just some color on what gives you that confidence. Assuming we've got like a stable GDP environment. There's no down turn I guess.

And our site so.

I think the demand for air travel remains strong.

Yes, there are economic challenges in countries like Germany, France, and the UK, where the economies are not doing well, particularly the U K post Brexit, but people are not willing to forego. The travel you know the kids midterms, we've just come through the midterm school break last week very strong traffic flows very strong bookings at high yields.

Um, and then, um, you know, you've obviously spoken about a number of countries, you know, Germany, France. And, you know, I saw some comments on the UK, but it does look like you're still continuing to grow in the UK, which I think is about 5% of your capacity. And if I'm not mistaken, you're going to grow in summer by...

The sounds of things. So, you know, why is it still attractive to you? And, you know, what are your thoughts on the upcoming budget on the 26th? Thanks.

Sure, Chris our summer holidays Christmas, we're seeing strong demand for travel.

If anything as strong demand for travel with 18, Ryan here, because we have such a pricing advantage over every other airline in Europe wherever we allocate the capacity we are feeling strongly and I think.

Okay, I'll maybe ask if you do the second half of the question on UK growth this year. Remember, the APD increase doesn't come in until April of 2026. So, you know, but it's coming.

Reflected in this morning's bookings even into the remainder of October November December November December where forward bookings are about almost 1% ahead of where they were this time last year.

And we see that continuing so.

Early this morning, one of the interviews if we stay at $650 million on fuel next year, when we pass that on in the form of lower fares.

And my answer was I think we can but I don't expect to have to because I don't see if you look at the kind of cost inflation ex fuel unit cost inflation in ways easy Jetblue times at Air France KLM.

High single digit low to mid double digits in the case of with those guys have no future unless a constrained capacity can get airfares oak.

For the next year or two and I think we would be the beneficiaries of that with a much more disciplined unit cost.

Just saying problem for the past year, if you go back to the broad brushes or, you know, my favorite back of the envelope. The real Drive, I think of our industry in Europe for the next 4 or 5 years. This capacity constraint, you know, we've gone through 2530 years where there was no Airlines being set up low fares Airlines, the legacies were setting up low for subsidiaries. Everybody had new aircraft deliveries. Yeah, there is very little capacity growth across Europe. Uh, this year next year, or for the next 3 or 4 years. Nobody has, uh, any significant aircraft orders with the possible exception of Ryan are with, had some orders, and they've can or they're desperately trying to defer those orders now, which means their profits. Implode because all their profits come from mythical or Ponzi like uh, say the least back profits, being recognized in a pnl, but that's an aside. So I think the demand for air travel remains strong, uh, yes. There are, uh, economic challenges in countries like Germany, France and the UK where the economies are not doing well, particularly in the UK.

Troll and I could go back to slide four in our presentation. If you look at the comparative of unit cost advantage, we have over every other airline in Europe.

I think there's a reasonable prospect that we will see modest increases over the next two or three years.

Plus or minus any unforeseen events or modest fare increases you know mid single digits I Didnt Reiners case, most of that flowing through to the bottom line now.

We'll have labor cost inflation I think next couple of years I think Hec will continue to be.

Post brexit, but people are not willing to forgo the travel, you know, the kids midterms we've just come to the midterm school break last week, very strong, uh, traffic flows, very strong, bookings at high yields, uh, Easter Chris summer, holidays Christmas. We're seeing strong demand for travel. I think if anything, strong demand for travel with an inline air, because we have such a pricing advantage over every other airline in Europe, wherever we allocate the capacity, we are filling strong in. I think that was reflected the this morning's booking

Badly controlled by government, but overall.

We would be move we're moving into a decade, where we're going to start taking aircraft, 20% more things that burned 20% less fuel.

We're looking at a much more operating efficiencies coming through and I think that justifies a reasonably modest growth in profit per passenger from 10 to 12 to 14 I think over the next five years to 2030.

But then I'm gonna lights, hopeless Optimists, which is why I'm not logged in the airline industry, Eddie you get growth you're talking about.

A P D. I mean, notwithstanding the sort of thought grilled dogs.

<unk> growth in the U K.

The way we look at in terms of development does not youll season by season, which is a continuous carousel of airports that we do.

He is with us.

If you've got airports EBIT.

Market like us that are willing.

Sure.

The investors it through in terms of the Oracle will then work on those awards.

Extra capacity, we've got extra aircrafts going into places like Newcastle which is done from.

Zero to two aircraft based on three aircraft base live birth rate was kind of extra aircraft difficult to go to the extra aircraft serving them.

Yes, which does all these things.

Extra aircrafts going in because they are winning and we're in there for the long term, we're lowering our lowering cost.

Eric.

Incentivize for additional traffic so it still should always go coterminous with the markets as you as you make those investments and it's going to put even more pressure from that.

The digit load amid double digits, in the case of whiz, those guys have no future unless they constrain capacity and get airfares up, uh, for the next year or 2. And I think we will be the beneficiaries of that with a much more disciplined unit cost, uh, control. And I keep going back to slide 4 in our presentation. If you look at the comparable unit cost Advantage, we have over every other airline in Europe. I think, uh, there's a reasonable prospect that we will see modest fare increases over the next, uh, 2 or 3 years, plus, or minus any unforeseen events, but modest fare increases, you know, mid single digits. And in Reiner's case, most of that flowing through to the bottom line. Now, we will have labor cost inflation. And in the next couple of years, I think ATC will continue to be out of, uh, uh, badly controlled by governments, but overall, uh, we will be move. We're moving into a decade where we're going to start taking aircraft, but 20% of those seats that burn, 20% less fuel, uh, per flight. We're looking at a much

Neil anything you want to add there on U K growth or even positive NPD.

Not particularly.

I think we're.

And yourself cover that off fairly well on the that is the profit per Pax I suppose just reiterates that it won't go in straight line. So that there are years, where it will be often years, where it will be slightly down.

Hey, Thanks, I'd be out of cars Marzec here as well who's the CEO of bugs that might just I guess help us do just to give you maybe his deep insight into growth in central Europe, Poland and in particular, the charter market and pose me highlight when you want to add on growth, Yes, I think those non taxi economies like Poland and central Europe.

More, uh, operating efficiencies coming through. And I think that justifies a reasonably modest growth in profit per passenger from 10 to 12 to 14. I think over the next 5 years to 2030, uh, but then I'm going to be like a hopeless optimist, which is why I'm employed in the airline industry. Eddie, uh, UK growth impact of APD. Yeah. I mean, not understanding the sort of background of, uh, continuous ATOL growth in the UK and the way we look at in terms of, uh, group development and.

That's true.

I see.

So very well demand is strong we have no ATM, perhaps allocated in the Aegean the default.

Part of the market with 44.

Offering more or less 40 million seats, we have the most attractive destinations in CE.

We have very strong brand recognition that the ryanair, but also supported by our low cost structure bus.

N.

Generating over three points.

<unk> 5000 direct jobs.

Central and eastern Europe.

Nacho season by season, which is a continuous card sale on the airport that we do, uh, deals with. And like, is that, uh, if you've got airport even in a, in a tough market, like that, that are willing, uh, to share the, um, the Investments with you, in terms of lower cost. Well, then we're going to reward that, uh, with extra capacity and we've got extra aircraft going into places, like, Newcastle which we've done from, you know, zero to 2 aircraft based, and 3 aircraft base. Now, birmingham's got an extra aircraft. Never goes to an extra Berlin. Manchester St. All these places have extra aircraft going in because they're willing, um, we're in there for the long term. We're lowering. We're lowering costs. They are. They're, and incentivize for for additional traffic, so it doesn't always go co-terminus with the market. As you as you make those Investments, and it's, it's going to put even more pressure on health.

20000 at airports handling and so on we made a lot of significant investments in the museum.

Neil, is there anything you want to add there on UK growth or the impact of APD?

Through our facility, but also training centers, we completed the best entry.

The biggest could a training center in central and Eastern Europe.

Sorry.

Not particularly. Uh, I think we're, you know, Eddie and yourself get along fairly well on the profit per pack. I suppose just to reiterate, it won't go in straight lines so that there'll be years where we'll be up and years where we'll be slightly down.

Motion simulators.

Located in Crocco, who will be able to swing over 300.

Through Saturday and.

We develop also our Warsaw Op center.

Focusing on our cold weather in central and Eastern Europe, but also.

It serves as a backup for adopting.

Hey, thanks. I’ll be out of cars, Marc is here as well. Who's the CEO of Buzz? I might just think it's helpful to give you maybe his insight into growth in Central Europe, Poland in particular. The charter market involves Mihi. I mean, you want to add on growth? Yeah. Okay, it goes. Non-tax economies like Poland, Central Europe.

Center.

So there is a lot of capacity still weekend not located in central and Eastern Europe.

But the only.

I think Australia is that the.

Number of aircraft, we can allocate there.

Ed.

We are in the in the good shape too.

A lot of market share in the.

The next two three years.

Sure.

Moving aircraft back from the desert, but.

There are good taxes too. I mean Poland, and see, um, performing very well, demand is strong. We have now. 80 aircraft allocated in the region. The Poland is the biggest, uh, part of the market with 44, uh, offering more or less 40 million seats with the most attractive, uh, destinations in CE. Uh, we have very strong Grand recognitions there at the Ryan, but also supported by our local structure bus.

Aircrafts in central and Eastern Europe are you seeing much.

With those markets and how does the.

How long what's the Albania, where we're opening are based in Toronto, which is currently a weird space How's the piranha expansion base going head to head with wage.

Hello case.

We used aircraft allocation from the best sense to central Eastern Europe, I would say it's too late.

After recall between pleasing central and eastern like 40%.

Hey.

Took their capacity or or or even past capacity from the region to region.

Now we are you guys with Poland to Edmar.

Uh, uh, generating over 3.0 3.5 thousand direct jobs in central eastern Europe. Supporting another 20,000, airports handling and so on, we make a lot of, uh, significant investments in the region, uh, through, uh, our hangers facility, but also through training centers. We completed recently, uh, the biggest uh, crew training center in central eastern Europe, with 3, uh, sorry, 4, full motion simulators. Uh, it's located in kco, will be able to train over 300, uh, through uh, per day and uh, we developed

<unk> Croatia, Slovakia.

We have the low cost structure there as to why we are able to compete.

In terms of cost levels, no cheaper Airlines and then ask now in the region.

Also leads that there.

Yes.

<unk> in the industry over six sectors per aircraft per day.

Are they the new base launch next summer will be to run that for us.

Quite significant capacity.

But what I mentioned, we are absolutely not afraid of that because our local cost structure there.

<unk> has the lowest cost once we deliver the lowest cost we are able to deliver the lowest fares that are slow.

Maybe anything you want to add on growth there and looking forward.

Let me just touch on the point or chocolate with lots of what's happening out there with our.

Policy all of our growth strategy is to go back to the central and Eastern Europe, and certainly what we pick up from here.

Is that those that are incentivized to grow is that we're there for the long term.

And you can see even cancellations at Butler.

Whereas before it started back there. So some of that has been replicated and you hear a lot of noise, but not a lot of.

A lot of actions that it makes sense as into places like Italy, where do.

Almost 1200 frequencies, a week and you've got less and less than 100 frequencies a week from.

Whereas there so but I think airports recognize Ryan are typically long term do a do with you Ryan or get the get the cold stone youll have the traffic for the long term.

Aircraft in central eastern Europe, are you seeing much, uh, of width in those markets? And how's the, uh, how, what's the Albania? Where we're opening a base in pyranha, which is currently a wage base. So, uh, how's the pyranha expansion based going head head with width. So, if that could have the location, I mean, the width aircraft allocation, from the deserts, to central eastern Europe, I would say it's too late. I mean, after a free call between increasing central eastern, like 40%, we, uh, took their capacity or or, or even half capacity from the region to the region. So, now, uh, we are the biggest in Poland, the baltics Croatia Slovakia, and we have the local structure there. So, what we are able to compete, uh, uh, uh, uh, in terms of cost level, there is no cheaper Airline than, than, than the fast now in the region. Uh, also, with the the, um, the highest

Rather than looking at these on our short term deals that are available.

Okay. Thanks, Eddie Thanks, Jennifer next question please.

The next question goes to Stephen's panel of Stephens. Please go ahead.

Hi, Mike.

So some Boeing last week they had the results I thought they were pretty vague on the certification of the 2026, maybe go deliberately we're for the Max 10, I mean, a little bit.

split utilization ratio in the industry over 6 sectors per aircraft per day. So, uh, the, the new, uh, base launch. Uh, next summer will be Tirana for us, uh, with quite significant capacity, uh, of weeds. But what I mentioned we are absolutely not afraid of that because our local cap local local structure there. Uh, guarantee has the lowest cost once we deliver the lowest cost, we are able to deliver the lowest.

Little bit more work on the 10 and the seven.

Hardware and software modifications, although they didn't say it was pretty straightforward so.

Just wanted to talk about the work they talk either we're telling you and then you mentioned labor can you just remind us what's.

What's the time table for C. L. A as I think most of them are in 'twenty, 'twenty, south and that's stuff that would be great.

Contract labor agreements. Thank you.

Yeah, I mean I think.

It's one of the things I give a boeing more good than you might have seen it really much more credit you know the old management team would give you is all took the pie in the sky. It should be here Tomorrow next week, and then missed targets all over the place.

The new guys are much more cautious and they do.

I don't want to make promises they can't deliver and I think that's the sensible space for them to be and would you look at what they have delivered you know they've got FDA approval to go from <unk> hundred 42 in October.

As far as that as well, it needs to be updated. And you want that on growth there, a note. Before we, I mean, just just touch on the point there, you talked about, you know, with and what, what what's happening out there with our our policy or our growth strategy here. So, to come back to sense of the Eastern Europe and turkey. What we pick up from the airports is that those that are incentivizing us to grow? Is that we're there for the long term. Um, and you know, you can see even cancellations in modeling the, uh, from ways before they even started back there, you know. So some of that has been replicated and, you know, you hear a lot of noise, but it's not a lot of a lot of action on that even extends to places, like, usually where we're doing. I don't know almost 1200 frequencies a week and you've got less than less than 100 frequencies a week from, uh, from where there so, but I think airports recognize Reyers in for the long term. Do it, do a deal with Reiner, get the get the codes down and you'll have the traffic for the long term. Um rather than looking at these other short-term deals that are available, but

I'm talking about going to rate 46 in March April next year that doesn't really affect us really finished our the game changed your deliveries at the end of February but at least we have 29 aircraft for summer 2026.

Okay, thanks, Eddie. Thanks, Jenner. Next question, please.

The next question goes to Stephen Furlong of Davey Steven. Please go ahead, Stephen. Hi.

Yeah, hi Michael. Um,

There is a risk at the moment, but the government shutdown that certification, they're pretty confident talking to us and actually we get this on the other side from talking to your asset who were involved. The survey you asked are very impressed with the work that Matt.

Just I’m bowing last week. They had the results and I thought they were pretty vague on the certification. They just said 2026. Maybe they deliberately were for the max 10. I mean a little bit, a little bit more work on the 10 and the 7.

The volume of the management team and the work that they're doing and we get a lot of very positive feedback from the Asa.

And the hardware and software modifications, although they did say it was pretty straightforward. So,

I think they're right to be somewhat cautious to under promise and over deliver.

Just want to talk about that. What exactly are they telling you? And then you mentioned labor; could you just remind us?

But we have a reasonable headroom there at the moment, they're talking about Max 70 certified by in Q2 next year. Max 10. In Q3, you know that could slip to Q4 to Q1 of 2027, and we would still get our 15 deliveries in the spring of 2027 now Judy we'd be one of the lead operators of the.

What is the timetable for CA's? I think most of them are in 2027 and stuff. That would be great to contract labor agreements. Thank you.

I mean, I think

Max 10, I wouldn't have any issue with that we are assuming we can get them to better.

It's 1 of the things that I give a Boeing more the new managing and doing much more credit. You know, the old management team would give you all sorts of pain in the sky you know, to be here tomorrow next week and then miss targets all over the place they you know.

So that's what they're telling us and I've gone in writing that they will meet our delivery dates. The first 15 delivery dates the first contracted 50, each and every day it's interesting.

They would meet that's what gave us a call.

<unk> fit into the treasury function to go out and start hedging had the U S. Dollar on those are firm deliveries.

You know, we're looking for more opportunities to extend those are those hedging so.

I think Boeing we're right to be a little bit cautious in their public commentary, but all of the delivery on the ground in terms of the quality of what they're delivering to us and the timeliness and what they're delivering to US now has been nothing putting pressure for the last three or four months now page here you don't need any school along the way, but you know in Stephanie Pope who is.

The new guys are much more cautious and they don't want to make promises. They can't deliver. And I think that's the, the sense of this place for them to be in, but you look at what they have delivered, you know, they've got an FAA approval to go from rate, 38 to 842 in October, they uh, they don't talk about going to rate 46 in March April. Next year, that doesn't really affect us and we'll have finished our, uh, the the game changer deliveries at the end of February. But at least we have all 29 aircraft in for summer 2026.

Sitting on top of the production line in Seattle There is some.

Body Who's there every day you can pick up the phone in order to get back to you. She is really is on well on top of it and I would be very supportive of the work she has been doing.

Maybe I might add over say a sort of timetable on cna's.

Naval contracts were now too.

For renewed in 'twenty.

<unk> 77.

There's a couple of our labor contracts that will be up two or three on the pilot side and again similar number of the cabin crew side with like a lot of what we're it's not always just the base.

Pay I mean, if you look at the disruption that's happening against the background Hec and Brian <unk> ability, although its people to actually deliver in sort of a.

Sort of a stable working environment underpinned by the continuation of our fight for Russia, which will be a key part of any discussions on the CLA and we've seen also over the last number of years what are the dividends up.

Local labor contracts is that people that not only are in the right. Most people are in the right place where they want to be.

It's relatively easy in terms of how they are paid the logos and bureaucracy administration labs has made a huge investment with that in terms of it's so much easier to it's easier than it's ever been in Ryanair history for people.

Flow basis to get there.

The smart thing so how do I get by talking about how do I get right like payroll queries and Thats all on sort of a sort of a platform called <unk> connect so there's lots of things like pilots and cabin crew more than ever value given the disruptions that are there at the disruption that was driven by ATC to have a stable working apartment like this August for example, we had our lowest cancellation.

Um, so but they're telling us, uh, and have gone in writing that they will meet our delivery date. The first 15 delivery days. The first contracted 15 delivery dates in the spring of 27, they will meet, that's what gave us the, uh, confidence in the treasury function to go out and start teaching. Uh, the US Dollar on those uh, firm deliveries. And you know, we're looking for more opportunities to extend those, uh, those hedging. So I think Boeing will write to be a little bit cautious in their public commentary, but all of the delivery on the ground in terms of quality of what they're delivering to us and the timeliness of what they're delivering to us. Now has been nothing but impressive for the last 3 or 4 months. Now, they clearly don't need any screw-ups along the way. But, you know, in Stephanie popo, who is sitting on top of the production line in Seattle? There's somebody who's there? Every day you can pick up the phone and call her, he gets back to you, you know, she's really is on well on top of it and I would be very supportive of the work she's been doing. Um, maybe I

Level ever.

Sneak either from the previous season, a lot of that again is about recovery of the day, so we'd be talking with them.

Our our Union partners in terms of.

The renewal of agreements, we will try to do long term stable agreements underpinned by superior working conditions that I think are increasingly becoming more valuable. So it's not all just about one two punch of Trump the Spanish Chile.

Over so, so time table on cla's, Eddie our most of our labor contracts were out to uh, our our come up for renewal in the April 27th 27th. And there's a, you know, there's there's a couple of uh, labor contracts, that will be up, um, 2 or 3 on the pilot side and again, similar number of the cabin crew side, but like, a lot of what we're, it's not always just about, uh, about pay. I mean, if you look at the disruption that's happened, I guess the background of ATC and riner's ability, allow with its people to actually deliver in sort of

a, uh, sort of a stable working environment under phone by the continuation of the 54 roster, which would be a key part of.

We're just computed the Spanish CLA, but the cabin crew, which was one of the last warms post eh.

Sort of utilization to where some.

A portion of the road or actually it was signed side there last week that'd be ratified by the local labor It's Hershey.

That's fair that's fair count because that's very well because that goes into 'twenty, Turkey into that deal.

That sort of sets some.

Somewhat of a benchmark for.

Wherever we're going to go with the new deals that have gone in particularly on the cabin crew side.

Daryl.

So you wanted to add anything to that on the CLA and keep.

People officer.

Sure Dara.

Okay, maybe times when I look at you.

Alright, you say Steven the neighbor contracts went up to April 27, Okay.

Okay cool yeah. It kind of is timed to meet deliveries update the Max hands and there's no doubt, we're going to get a productivity gain out of those Max 10 aircraft not so much for the extra seats, but from the fuel consumption on the engines, which is dramatic.

Any uh, discussions on the CLA. And we've seen also over the last number of years, 1 of the dividends of of doing local labor contracts, is that people now not only are in the the right. Most people are in the right place where they want to be and it's relatively easy in terms of uh, you know, how they're paid the local bureaucracy Administration, and Labs of made a huge investment with that in terms of. It's so much easier now, it's easier than it's ever been. In Reiner's history for people in Barlow bases to get the, you know, the the smart things done. How do I get my time off? How do I get my, my payroll queries and that's all done through, a sort of a platform called Reiner connect. So there's lots of things like pilots and cabin crew more than ever value. Give it a disruption that are there, the disruption that is driven by ATC to have a stable working environment. And I mean, like, this August, for example, we had our lowest cancellation level ever, and, you know, completely different from the previous season. A lot of that again, is about recovering on the day. So we'll be talking with

We are willing to share some of that productivity upside with our people I think they say, but we do a.

Darren and his team have started those kind of discussions around 2026, <unk> 27, we have as crazy as already said record low attrition I mean, we have almost no pilots and cabin crew attrition at the moment people are happy where they are theyre being well paid there in the base as they wanted to be in theory the.

Uh, our Union Partners in terms of the the the um, the renewal of agreements, we will try to do long term, stable agreements, but underpinned, by Superior working conditions that I think are increasingly becoming more valuable. So it's not all just about 1 just on the Spanish ceiling. Uh, we've just concluded the uh, Spanish C.

The Gulf carriers, which would historically have been the kind of evolve that would've recruited a lot of our pilots. They don't have any capacity growth either at the moment. So.

They've never been more stable, but I think we will be seeing productivity gains coming over the next couple of years and we are certainly minded.

To do deals with if as long as we can through sensible deals will be due on sensible deals no. We won't I mean, we've taken strikes in Belgium in the last 12 months, we've taken an occasion strike in Spain. We're happy to take strikes are you know where people don't Wanna be stupid.

Delay for the cabin crew, which was 1 of the last ones post. Um, uh, sort of the unionization. There were some, uh, bumps in the road, but actually was signed signed their last week. Now we ratified by the local labor Authority, and that's for, that's for Capital. That's very well because that goes into 2030 into that deal. And you know, that sort of sets um someone of a a benchmark for uh where we're going to go with uh the the new deals that are going to come up particularly on the cabin, crew side and Daryl. You want to add anything to that on the CLA. So that few people officer

No Daryl.

Take strikes and we would face them down, but I think there is some upside coming in the next couple of years and certainly we would want to our people to be at the front edge of that and if we can contribute new pay deals.

In the next either from April 26 offer a 20 separate and if that results in a step up in labor costs, It's something I think we'd be willing to fund and finance.

So watch this space and we would hope to make progress on that over the next six 912 months.

Thanks, Steve next question please.

The next question guys sure Alex <unk> of Bernstein. Please go ahead.

Hi.

Hi, Good morning, two for me. Please firstly on ancillary is really good to see that robust growth continuing on from Q1, but what's driving that is it product innovation is it pricing decompressing two years into one as you reinstate the Otas and lab.

Okay, maybe Daryl's on the line. Look, as you rightly say, uh, Stephen, the labor contracts, run out to April 27th. That will code in kind of is timed to meet the, the, the deliveries of the, the max 10s. And there's no doubt. We're going to get a, a productivity gain out of those Max 10 aircraft, not So Much from the extra seats. But from the fuel consumption on the uh, the engines which is dramatic. Uh we are willing I think to share some of that productivity upside with our people. I think they say but you know, we've Daryl and his team have started. Those kind of discussions around 2026 and 2027. We have as Tracy has already said record, low attrition. I mean, we have almost no pilots and no cabin crew attrition at the moment. People are happy where they are, they're being well, paid, they're in the basis. They want to be in clearly the, uh,

At this time of last year, and then related to that what do you expect for unit ancillary sales over the coming years.

Second question is on Capex and you've previously spoken about peak capex of around 3 billion euros. In FY 17, 31, you can talk about locking in some of the dollar dollar weakness and some of those gains into your Capex budget. What are your latest expectations for peak capex when and how much. Please.

Thanks, Alex So maybe I'll ask Tracy Mccann to take the <unk> question needed you might come in to do a capex.

Capex is Tracy ancillary instead of eight 3% a lot of that is based on what we said from dynamic pricing.

Got to get better pricing on seats that are pricing on back. We also have an order to see surface, which is an increase in our onboard spend and so probably probably fall back a little bit you are going to be faced with the same thing on the comparables in the second half of the year. So maybe not as strong as the first half and probably about 2% per annum I would say beyond.

Taken strikes in Belgium, uh, in the last 12 months, we've taken an occasional strike in Spain. We're happy to take strikes, uh, you know, where people are, want to be stupid. Uh, we'll take strikes and we will face them down, but I think there is some upside coming in the next couple of years and certainly, we would want our people to be at the front end of that. Uh, and if we can conclude new pay deals, uh, in the next either from April 26th, or for April 27th, and if that results in a step up in labor cost, it's something I think we'd be willing to fund and finance. Uh, so watch this space and we would hope to make progress on that over the next 6-9, 12 months.

Thanks, Stephen. This question, please.

Beyond just this year, but again a lot of it is accurate and like lots of not seem like an inviting them increments if you get on price.

The next question goes to Alex, Irving of Bernstein. Alex, please go ahead.

Okay, Neil you want to touch on Capex.

Yeah, Alex Theres not a lot to add at this stage, where we're only 25% hedged on the firm's 150 aircrafts.

Haven't done anything on the options, yes, the capex that we've guided in the past. It doesn't include engine shop, So there's a little bit premature to start changing numbers at this point in time I prefer to wage often with the engine shops agreed.

Hi, hi. Good morning to you from me. Please, first on ancillaries: it's really good to see that robust growth continuing on from Q1. What's driving that? Is it product innovation? Is it pricing, you compressing two years into one as you reinstate the OTAs and flat unit ancillaries at this time of last year? And then, related to that, what do you expect for unit ancillary sales over the coming years?

And then come out and refresh the numbers at that point in time.

Jon Norton here headed.

Do you want to add on sorry go ahead Neil.

No I thought that that's pretty much it.

Same question is on capex. The previously spoken about peak capex is around €3 billion in FY 2026. You talk about locking in some of the dollar weakness and some of those gains into your future capex budget. What are your latest expectations for the peak capex, when and how much?

John do you have anything on Capex on the Treasury.

Currencies.

Thanks, Alex. So maybe I'll ask Tracy Meccan to take the Aunties question. Neil, you might come in and do CapEx.

No.

Got a notice there in place there.

Or P Capex. Tracy, ancillaries. Okay.

And I think top line speeds.

When you look out at the start to the year, where your dollar rentals were down with 123 of January and then when you also factor in.

Contract is signed and it was not went away.

Last night stays in place now to take us forward.

Just look for opportunities in some of the symptoms just for end markets going forward.

Is it just depends on us.

Great. Okay. Thanks, Shaun Alex Thanks for the question next question please not yet.

The next question guys, Hey, Dudley Shanley Allstate body. Please go ahead.

For 3%, a lot of that is within what we said from Dynamic pricing. So we're starting to get better pricing on seats, better pricing on bags. We also have our order to seat service, which is um, increasing our onboard spend and so probably probably follow back a little bit. You're going to be faced with the same thing on the comparables in the second half of the year. So maybe not as strong as the first half and probably about 2% per Anam. I would say beyond beyond this year. But again, a lot of it is driven by what the last team are doing in house, in driving them increments, so you can get on price.

Morning, Thanks for taking my questions two questions. The first one Michael you were on CNBC. This morning, I think of them as you correctly, you said the consumers seem to be a little bit more price sensitive at the moment. How are you seeing that coming through your business and so that's just a temporary thing.

Okay, Neil, you want to touch on capex?

And then the second question has to do with capacity constraints.

Just what are you watching on that kind of three to five year view that it would remain as constrained I know some people have been talking about.

Yeah, Alex did. There's not a lot out at this stage where we're only 35% hedged on The Firm, the 150 aircraft. We haven't done anything on the options yet. The capex that we've guided in the past doesn't include engine shops, so is it a little bit premature to start changing numbers at this point in time? I'd prefer to wait on through the engine shops. Agreed.

And then come out and refresh the numbers at that point in time.

Air aircraft from people like spirit or something that's been shifted over to Europe, what do you watch. Thank you.

Uh, John Norton here ahead of John. Do you want to add on? Sorry. Go ahead.

Okay. Thanks again.

No, that, that, that's pretty much it.

Where do we see consumer price sensitivity at the moment I think it is the fact that you know forward bookings without any price promotion at the moment are running close to 1% ahead of where they were this time last year. At this time last year, we were actually coming off the kind of hotelier pricing down 7% lower fares.

At the moment fares are up you know in the first half of the year, 13%, we think that'll be a little less in the second half of the year and yet we're.

Pricing is called me running against US our forward bookings are running against it if anything what kind of effect at closing off.

John, you had any on campus on the treasury, or currencies? Yeah. Yeah, no, no. We we, we've got a nice layer in place there for the maximum. I mean, when you look at it, at the start of the Year where, you know, your dollar levels were down at 1 or 2 103 in January. And then when you also factor in when the the contract is signed and it was at 1 away, we have that nice space and place now to take us forward and we'll just look for opportunities and you can just Square Market's going on forward.

Cheaper seats to try to restrain forward bookings because you know clearly we want to keep as much capacity, we can for the tertiary in bookings, particularly as you run up against Christmas and the new year and in markets, where were expanding capacity regionally easily very strong.

Just to build on that.

Right. Okay, thanks, Sean. Alex, thanks for the question. Next question, please. Now you.

The next question goes to Dudley Shanley of Goodbody. Please go ahead.

And I think we've I didn't want to identify recently in Italy as Alitalia C. R.

Seem to have a number of their aircraft fleet grounded.

Particularly in the domestic market just a shorter spares.

And we are expanding you know, we're seeing very strong loads. Okay. At the prices are lower than in domestic easily domestic spending that kind of stuff, but strong growth.

And I know there is clearly a bit of a consumer price sensitivity there.

I'm campaigning aggressively against <unk>, putting up a P D or doing any more damage to the U K economic growth, but in a kind of a cycling bizarre screwed up weighted the more she damages economic growth and confidence in the U K. The more people will switch away from paying higher fares to BDA and others onto Ryanair.

Morning. Thanks for taking my questions. Um, two questions. The first one, Michael, you were on CNBC this morning and I think if I'm listening to you correctly, you said the consumer seems to be a little bit more price sensitive at the moment. How are you seeing that coming through your business? Is that just a temporary thing? And then the second question was to do with capacity constraints. Um, just what are you watching on that kind of three to five year view that it will remain as constrained? I know some people have been talking about the likes of aircraft from people like Spirit and things like that have been shifted over to Europe. What do you watch? Thank you.

Okay, thanks. Have a good day. Where do we see consumer price sensitivity at the moment? I think the fact that forward bookings, without any price promotion at the moment, are running close to 1% ahead of where they were this time last year. And this time last year, we were actually coming off.

Sure.

So I think that all goes well for our growth over the next couple of years capacity constraints. What can we look for I mean, the only thing you could we look for is Boeing and Airbus orders are.

Hey are you know.

Recent one was Turkish which I think was kind of pre announced by Sean putting was sitting with her to Ghana meeting in in Ankara.

Yeah.

And even Turkish which you know is as announced an order for four I think 200 or 250 narrow bodies 737, but there's no engines, they're now complaining that they can't get a deal out of the engine manufacturers I mean, an hour when we order aircraft, but when you go to sort out the engines, but we wouldn't buy ordering aircraft engines attached the market has moved.

Aggressively in favor of the engine manufacturers people are now kind of ordering aircraft, but we'd know engines, and then kind of being price takers when they go to do deals on aircraft.

Really I don't see anything I mean, if some of those aircrafts are P. Rob just spirits I think the counsels appearing in Europe are zero.

Airlines in Asia.

We're in the Middle East.

And then it would be much more aggressive and willing to pay much higher lease rates have been airlines in Europe, I see no demand among Lufthansa air France, KLM IAG for capacity growth, they're all playing the same game they've consolidated they wanted to control capacity if anything I think they will keep shaving capacity.

So they can get here for herself.

Wisdom cancels are desperately trying to well indigo not weird.

I think we've had it with identified recently, in Italy is an Italian CRX. A seems to have a number of their aircraft feet grounded. Uh, particularly in the domestic Market because the shorter spares, um, and we are expanding, you know, seem very strong loads, okay? The prices are lower in in domestic, easily, domestic spend that kind of stuff, but strong growth, uh, and I know there is clearly a bit of consumer price sensitivity there. You know, I'm campaigning aggressively against rich and reads putting up, uh, APD or doing any more damage to the UK economic growth, but in a kind of Slightly bizarre, screwed up way the more she damages economic growth and Conference in the UK. The more people will switch away from paying higher fairs to be a uh and others and uh, on to Ryan are. Um, so I think that all ogre as well for our growth over the next couple of years capacity, constraints, what we look for. I mean, the only thing you could really look for is Boeing and Airbus orders, uh, and they are

Our debt can be trying to postpone those Airbus orders into the mid twenties, turkeys, which by the time, you've added five or six or 10 years of escalation those already expensive aircraft would be even more expensive on all easy ice is do it yourself gauging from <unk> 19 to 320 ones out there fortress airports Catholic parish, Switzerland.

You know, the most recent one was Turkish, which I think was kind of pre-announced by Trump when he was sitting with her again at some meeting in, uh, in Ankara.

It's essentially what they do.

As we ramp across Europe, we havent stayed in central Europe, we don't see ways anywhere in fact as Andy has mentioned most of the big incentives will get growth essentially we're getting from airports are front with close to more airports who are shooting themselves.

And even Turkish, which, you know, as announced, an order for 4, I think 200 or 250 narrow-body 737s, but they have no engines. They're now complaining that they can't get a deal out of the engine manufacturers. I mean, in our game, when we order aircraft, you're going to sort out the engines, but we wouldn't buy ordinary aircraft in this without engines attached. The market is moving.

<unk> booked in the not too distant future I think there's a reasonable prospect.

So, aggressively in favor of the engine manufacturers, people are now kind of ordering aircraft, but with no engines, and then kind of being price takers when they go to do deals on aircraft.

And are getting ryanair to come in there and kind of if you like almost as the insurance policy against eight wins collapsed now.

Don't think ryswick collapsed, but I mean as a competitor.

We wouldnt pay any attention to them at all I mean, the idea that they're going to close one of their desert bases in Abu Dhabi Noga warranties to happen towards the woman in Riyadh.

Going to move that capacity back to central and Eastern Europe, What do you do.

We haven't seen them yet.

They expanded their definition of central and eastern Europe to the stands apparently most of these times are now in central and Eastern Europe. If you go by the way is definite. Meanwhile, we're charging and on top of him in Albania.

And they were competing but it's in Italy, and in Austria for two or three years ago. They disappeared.

We have a reasonably benign ah kind of map across Europe, where most airports wants us to grow there and increasingly countries want us to incentivize he wants to grow by abolishing environmental taxes.

Really I don't see anything. I mean, if some of those aircraft uh appear out of spirit, I I I think the chance of those appearing in Europe are zero uh Airlines in Asia are in the Middle East uh would and in would be much more aggressive and willing to pay much higher lease rates than Airlines in Europe. I I see no demand among Lanza, Air France, KLM, I Agee for capacity growth, They're all playing the same game. They've Consolidated, they want to control capacity by any angle. They'll keep shaving capacity. Uh, is so they can get airfares up Waze as canceled or is desperately trying to. Well Indigo not waste because our death, we trying to postpone those Airbus orders into the mid 2030s which by the time you've added 5 or 6 or 10 years of escalation, uh, those already expensive, aircraft will be even more expensive and all the easy yet is doing is up to aging from an a319 to a 321 at their Fortress airports Catholic Paris. Switzerland, that makes sense. It's a sense of thing to do.

Sweden, Albania, you know I would I don't go through the list again, one of the areas where airports were growing processing and next year would be in Bratislava, where we added three aircraft base.

And out of the road Austrians are I have failed to abolish they're stupid environmental tax which way. So that's the 160 million a year Vienna has put up its fees by 30% since COVID-19 and all of the airlines, including now Ryan there are taking aircraft out of Vienna, and putting them in Bratislava.

We had already announced an increase in our promised to have a patient three to five aircraft next year and then about three weeks later, we just announced they're going to open up two or three aircraft based in Boston, which is wonderful.

Because in order to be able to do you think we could do to respond to her wisdom and brought us off as total power airfares, there so that would be somewhat competitive with wounds.

Who come in Deadwood fares that are about 40, 50% more expensive than ryanair.

So it won't be exactly the same as it was previously in Vienna, or in Italy, which will lose we'll win the people apprise driver will be left with.

But as we trap across Europe, as we handle said, in Central Europe, we don't see whiz anywhere. In fact, as Eddie has mentioned, most of the big incentives will get growth incentives. We're getting from airports are from with customer airports who are shooting themselves at Wiz is going to go bust in the not too distant future. I think there's a reasonable Prospect um and are getting Reiner to come in there and kind of if you like almost as the insurance policy against a wins collapse. Now, I don't think wins will collapse, but I mean as a competitor, we wouldn't uh, pay any attention to them at all. I mean the idea that they're going to close 1 of their desert bases in. Abu Dhabi know the word is, they haven't closed the 1 in Riyadh and they're going to move that capacity back to central eastern Europe. Well, what could he do? Uh, we haven't seen them yet. I, I think they've expanded their definition to Center in Eastern Europe to the stands. Apparently, most of these stands are now in Central nation, in Europe. That you, uh, we go by the winds definition. Meanwhile, we're charging in on top of them in Albania. Um,

The lowest fare airline ryanair delivering all of that growth but in.

So back yet Theres, a new transport minister of New government policy environmental taxes, if quota ATC fees by 50% in the airports is incentivizing growth.

While rates your Reeves is over here in the UK, considering whether she further increases apd taxes to reach and.

So all of those you know the.

Uh, they were competing with us in Italy and in Austria 2 or 3 years ago; they disappeared. Uh, so we have a reasonably benign, uh, kind of uh, map across Europe where most airports want us to grow there, and increasingly countries want us to or incentivizing us to grow by abolishing, um, environmental taxes, and that is Sweden, Albania. You know how I know? Go through the list? Again, one of the areas where airports were growing fast and seeing next year will...

Marxist Leninist North Korean growth models, which consists all the <expletive> out of everything that moves with the result that nothing broken moves, Indiana, but and to the extent that the U K economy suffers I think more and more English people, we continue with our fleet to Ryanair.

Away from high barrier and I was like Easyjet and B E.

Thanks, Joe The next question please.

The next question does she cannot dwy out of Citi. Please go ahead.

Hi, Thanks very much first question is for you Michael you were talking about how Etfs credit prices should come in line with course here, which obviously would be quite material if that did happen, but how much of this is hoping how much do you think this might actually change is there political will for this and then the second question for Neil on the calls for Fox It was somebody else.

Be in Bratislava, where we had a 3-aircraft base. An hour up the road, the Austrians have failed to abolish their stupid, uh, environmental attacks, which raises this to €160 million a year. Vienna has put up its fees by 30%, since COVID, and all of the airlines, including now Ryanair, are taking aircraft out of Vienna and putting them in Bratislava. We had already announced an increase in our protests, and we plan to basing 3 to 5 aircraft next year. Then, about 3 weeks later, we just announced we're going to open a 2 or 3 aircraft base in Brazil, which is one of them.

We presented the first half of the year.

And you're talking about a bit of acceleration into the back half of the year I think you've got a quite a strong fuel hedge position for that so I'm. Just wondering where are you expecting some non fuel cost pressure in the back half of the year. Thanks very much.

Hey, it's Conor.

More expensive than right here. And the outcome will be exactly the same as it was previously in Vienna or Italy. Whiz will lose. We'll win. And the people who practice lava will be left with, uh, the lowest fare airline, Ryanair, delivering all of that growth. But in Slovakia, there's a new transport minister, a new government. They have a policy of environmental taxes, if coded ATC, reduced by 50%, and the airport is incentivizing growth.

Talk about moving Etfs of course, yes.

Somebody has to leave the campaign.

We've been calling for this for about two years, we didn't have to support up to flag carriers <unk> and Lufthansa.

IAG or air France KLM.

They're now much more partly impacted by the withdrawal of free Etfs is moot because they havent grown for the last 10 years most of their traffic was covered by free allowing Etfs allowances.

Europe on why those three Etfs allowances, they're getting much more heat or the cost impact on them is much more severe and lo and behold, they're all now campaigning for moving well, but if you're not going to fall as GTS altogether at least a little bit of time of course. It is already in defensible that Europe taxes, the <expletive> out of Europeans traveling.

Meanwhile, Rachel Reeves is over here in the UK, considering whether she further increases APD taxes, the rich, uh, and follows, you know, the uh Marxist leninist, North, Korean growth model, which consists of practicing the s*** out of everything that moves with the result that nothing f****** moves in the end. But uh, to the extent that the UK economy suffers, I think more and more English people will continue to take. We, we'll start fleeing to Ryan are and away from hyper are and it's like, easy J, NBA

Thanks, God. The next question, please.

The next question goes to Connor Dwire of City. Please go ahead.

In Europe, and yet the Americans the Gulf carriers on Asian carriers, all aligned to take off in Europe. They account for 53% of European Aviation C O two emissions and yet no.

So I think the fact that April is not unanimous on this I.

Hey, hey, thanks very much. First question is for you, Michael. You were talking about how ETFs' credit prices should come in line with Corsair, which will be quite material if that did happen. But how much of this is hope and how much do you think might actually change? You know, is there political will for this? Um, and then the second question for Neil on the cost factors of the 1% in the first half of the year. Um, and you're talking about a bit of...

I mean, how much of it is I'm much more optimistic that we will see some movement on that now we still have the dead hand off or <unk> or savant or latent land to deal with but ultimately I think you could even embarrassed and incompetent germinate devote can actually do it yourself beyond competitiveness. The drag you reported was 14 months old she's doing absolutely nothing and.

Acceleration to the back half of the year. I think you've got quite a strong fuel hedge position for that. So, I'm just wondering, you know, where are you expecting some non-fuel cost pressure in the back half of the year? Thanks very much.

Okay, thanks Connor. I mean, uh, talking about moving ETFs to Corsa, you know, somebody has to lead the campaign.

If we build a head of steam there are there is there.

Reasonable prospect that Europe through the fog of failure with ultimate do you want to do something other than spend hundreds of billions on defense, but to make its economy more efficient.

And air travel is clearly one of the ways of doing that it would be material. It would be when celgene a dramatic already significant reduction in airfares remember passengers are paying these etfs as it would result in a significant reduction in airfares.

At least it would mean that everybody in Europe is paying the same fair share is the non Europeans, whereas at the moment, you're the Europeans staying all of the taxes. The non European is getting completely free right and useless Europe in the middle of it are useless Hugh Vaughn delay in sitting in the middle of this terrified of Trump or.

Taxing the non Europeans and so I think it's a it's a coles whose time has come.

You know, we've been calling for this for about 2 years, we didn't have the support of the flag carriers in a4e in Lanza, i a or Air France, KLM, and but they're now much more badly impacted by the withdrawal of free ETFs as well because they haven't grown for the last 10 years. Most of their traffic was covered by free allowing ETFs allowances as European wines those free ETFs allowance and they're getting much more hit or the cost impact on them is much more severe and lo and behold, they're all now campaigning for moving. Well if you're not going to abolish ETFs all together at least open in line with Corsa, it it is utterly indefensible that Europe, taxes the s*** out of Europeans traveling within Europe. And yet the Americans, the gulf carriers, the Asian carriers, all a land and take off in Europe. They account for 53% of European Aviation, CO2 emissions, and yet pay nothing.

I also believe but again I'm one of life's guys off them is that actually we will embarrass her into doing something about air traffic control or at least defending and protecting the single market. She was the one who was singing most vociferous the Julian the Brexit negotiations and the thing that market is sacrosanct, we would do everything just depends on the market. One that is of course, a couple of the French air traffic.

Controllers want to go on strike. So I think all the time again I am much more.

Most spaces.

Commissioner since we call SaaS is it really a guy who wants to get things done he wants to do never change I think he really does want to.

Transform air trapped in Europe, he's from Greece, and therefore, they are very sensitive to making air travel and more efficient.

And I am very hopeful that him together with you in the name of the out of the four year time, so you'll see some movement in Europe on ETS or the next year or two.

Calling unit cost per passenger.

Yes sure.

On a couple of bits and pieces, Firstly I would expect that air traffic control charges will go up again in January this year had services. So abysmal that say that they have to put up again.

Uh, so I think the fact that a4e is now unanimous on this, uh, I mean, how much of it is? I'm much more optimistic, that we will see some movement on that. Now, we still have the Dead Hand of or, or saving Lane, to deal with, but ultimately, I think you can even embarrass and incompetent in Germany into f****** actually doing something on competitiveness. The dragging report is 14 months old. She's done absolutely nothing. And I think if we build a head of steam there, uh there's a reasonable prospect that Europe through the fog of failure, will ultimately want to do something other than spend hundreds of billions on defense but to make its economy more efficient. Uh and air travel is uh clearly 1 of the ways of doing that, it would be material. It would be the result in a dramatic or a significant reduction in airfares. Remember passages are paying these ETFs it would result in a significant reduction in airfares uh but at least it would mean that everybody in Europe is paying the same fair share as the non uro.

I think you'll see some of that marketing spend I'm talking about some timing in there or someone else will catch opens Christmas and into the stimulation for the the advertising ahead of the summer we're starting to see the Boeing compensation on wine. So that'll have an impact on the maintenance line, where some of those maintenance credits went in with the heavy maintenance at the back.

Europeans, whereas at the moment of the Europeans thing, all of the taxes, the non-Europeans getting completely free ride and useless Europe in the middle of it are useless. You, uh, Vanderlei, are sitting in the middle of it, terrified of Trump or, uh, uh, taxing the non-Europeans. And so I think it's a call whose time has come. Uh, I also believe, and again, I'm one of life's great optimists, that actually we will embarrass her into doing something about air traffic control, at least defending and protecting.

And off the year Tracey also talked about you know, we're going to start to recruiting off on the cadets.

That'll kick off probably in the January timeframe. So we will be ramping up on the <unk> side, but we'll also be ramping up as we always do ahead of the summer of 2026th so that's not that tends to be backend. This costs in there, which is why I'm kind of being a key.

Keeping the 1% to 3% unit cost inflation.

Very helpful.

Our next question please.

The next question go Chase capacity of Raymond James. Please go ahead.

Hey, good morning.

On the first one another question on the unit cost and then given that you have hedging in.

Next year or two, Neil will call. You're going to call for a passenger.

In place for next year and clarity around the following deliveries I was wondering if you could provide any kind of early thoughts on how we should think about fiscal year 'twenty seven unit costs.

And then maybe a second question just on the debt side, usually airlines that even have kind of a good balance sheet to find some value in having debts and being involved in that side of that kind of financial market, but kind of just curious is there of that view just ahead of kind of.

Capex next home Capex engine shop.

The opportunities so is that kind of a temporary zero debt deal.

A different kind of philosophy on the debt side.

Yeah. Thanks.

I think on the hedging I'm not asking you to come back and correct me when I, if I get something wrong here.

It's too early yet we haven't done the budget for FY 'twenty seven so you know I wouldn't get into unit cost at this stage other than we think $650 million in fuel cost savings with the fuel hedging. So that's a good strong start.

I think the two critical elements on the hedging as we bet, we've hedged 80% of FY 2007 fuel at just under $67 a barrel. We've made good progress on the currency hedging on Opex and I'll ask John to comment John North.

Yeah, sure. Uh Connor a couple of bits and pieces, firstly, I would expect that our traffic control charges will go up again. In January this year at the service is just so abysmal that, they, they have to put up again. Um, I think you'll see some of that marketing, uh, spend. I talked about some timing in there. Some of that will catch up on Christmas and into the stimulation for the, the, the advertising ahead of the summer. We're starting to see the Boeing, uh, compensation unwind. So, that'll have an impact on the maintenance, uh, line where some of those maintenance credits, uh, went. And then with the heavy maintenance at the back, end of the Year Tracy also talked about, you know, we're going to start recruiting up on the the cadets. Uh, that'll kick off probably in the January time frame. So we we'll be ramping up on the cadet side but we'll also be ramping up as we always do ahead of the, the summer of 2026. So that that that tends to be back in this uh, costs in there. Which is why I'm kind of being, uh, keeping the 1 to 3% unit cost, inflation.

Very helpful. Thank you. Thank

You thanks, Connor. Next question, please.

The next question goes to Santee. Sith of Roman James. Please go ahead.

Where are we on the Opex hedging for FY 'twenty seven.

80% sold for 2017.

So.

They were in the prior year.

Okay. So we've got we've had.

And the hedged away opex at a little bit of a saving as well I mean, clearly it's not materially in FY 'twenty seven, but we started to hedge the fixed orders on the Max 10 eight.

Hey, hey, good morning. Um, just on the first 1, another question on the unit cost, but you know, given you have hedging um, in place for next year and, and Clarity around the bow in deliveries. I was wondering if you could provide any kind of early thoughts on how we should think about fiscal year 207 unit costs.

So the hedging is locked down we have 29 aircraft will be delivered by Boeing and I think that's much more critical here into FY 'twenty, we have certainty now that we'll be able to deliver the headline traffic growth and that's what drives ultimately the airfares and what drives the ancillary revenues all the debt side, where in this kind of occupy should period you know we have this.

Um, and then maybe a second question, you know, just on the debt side. You know, usually airlines that even have kind of good balance sheets find some value in having debt and being involved in that side of the kind of financial market. So I was kind of curious about the zero debt view. Just ahead of kind of, you know, you do have the max capex, max 10 cap capex engine shop, you know, other opportunities. So is that kind of a temporary zero debt view, or do you have a different kind of philosophy on the debt side?

Kind of two year interregnum from 25 to 27, where in reality, we don't have a lot of our capex.

We would.

We have we're coming up to in May next year, we have the $1 2 million bond I mean, we raised that's coming out of Covid, that's less than 1%.

The cost of refining that and bond that currently would be somewhere close to or closer to about 3%.

Which is it is not a lot of money, but we don't need it at the moment.

Therefore, collectively as a board our view is we should demonstrate to the market that we can pay down debt, but these bombs right and we start getting to 26 or 27, I think we would reserve the right to stock we would probably go back to the bond market as we get into the heavy capex again on the Max 10, but we do so.

Yeah, thanks Debbie. I mean, I think on the hedging, I mean, the last needed to come back in and correct me when I if I get something wrong here, you know it's too early yet. We haven't done the budgets for FY 27. So, you know, I wouldn't get into unit costs at this stage. Other than we banked $650 million in fuel cost savings with the fuel hedging. So that's a good strong start. I think the two critical elements on the hedging are we've hedged 80% of FY 27 view. Let us just under 67% on the currency hedging on Opex. And that's John to come in on. John Norton, can you tell us where we are on the Opex hedging for FY 27 Q?

so, in the prior year,

Coming off with a strong balance sheet Triple B plus rated and say look we're you know we paid out about $4 billion worth of bonds post COVID-19 and so I like we like the sense of we're not trying to be zero for some kind of bullshit eh.

And.

Philosophical reasons, we would expect to be or to raise day. So as long as we can raise debt cheaply, but only when we move into a period of heavy capex, which is where we'll be in 'twenty eight 'twenty nine we only take 15 aircraft in 2007, we get another 15 aircraft and 28, but then we move up towards closer to 50 aircraft in <unk>.

Okay, so, you know, we've we've and it has to be Opex, are a little bit of saving as well. And then clearly, it's not Material in FY, 27, but we started to hate the, the fixed orders on the max 10. Um, so the hedging is locked down, we have the 29, aircraft will be delivered by Boeing and I think that's much more critical here in FY. 27, we have certainty now that we'll be able to deliver the headline traffic growth and that's what drives ultimately the airfares and what drives the ancillary revenues, all the debt side.

We're in this kind of artificial period. You know, we have this kind of two-year interregnum from 2025 to 2027, where, you know, in reality, we don't have a lot of, uh, CAPIC.

Nine in Turkey.

I would be of the view you would see us pay down debt to the last bond in May we will try to build up gross cash of somewhere between three and 4 billion out of that other than that will return the surplus cash to shareholders through dividends and buybacks and.

You know, we could, uh, and you know, we we have, we have, we're coming up to, in May next year, we have the 1.2 million Bond. I mean, we raised that coming out of Co, it's less than 1%. So the cost of refining that um bond that currently would be somewhere close to or close to about 3%.

But then as we get into the heavier Capex in 27, 28, 29, I think you'll see US go back to the the bond market like Theres nothing here, we have no principles here in terms of the having that are being debt free it just because of this kind of slightly strange. It's the first time in 30 years.

Go through a kind of a two year period with very different aircraft Capex pay down the dash and then we can always.

Which you know isn't it's not a lot of money but we don't need it at the moment. And therefore, collectively as as the board are view is we should demonstrate to the market that we can pay down this. Buy these bonds when we start getting into 26 or 27. I think we would reserve the right to start. Uh we would probably cut back to the bond market as we get into the heavy capex again on the max 10, but we do still coming off with a strong balance sheet, Triple B.

Refi again in 'twenty eight 'twenty nine from a position of strength.

I don't know if you want to add anything on that.

Yeah, I'd agree I'd agree with that Michael I mean, it's very much down to a cost decision at the moment, the cheapest way to phone themselves as that of our own cash resources.

And that's why we've decided to repay the bond offer on cash we got nearly 1 billion in dry powder in the form of our Undrawn revolving credit facility and as we've done in the past we will be opportunistic when we go back to.

So the bond market will go back at the time of our choosing and not just because there's a bond.

Maturing and we have to roll out roll it over and I think that's how we will lock in the lowest cost ultimately long term for the group. So as Michael said, it's not just we have to be debt free it just it's going to fall that way.

For a period of time.

And then we'd be back in the markets again.

And again I would draw the point yeah.

Look forward in terms of unit cost going forward if you.

If you look at our competitor airlines across Europe.

So called low cost airlines they have huge net debt on their balance sheets are you know mayor of aircraft leasing costs financing costs and those costs are rising and each of the for the next year or two we would have zero financing costs, we own 650 aircraft completely unencumbered and it is another point of difference.

We will try to build up gross cash up for some of June 3 and 4 billion out of that. Other than that, we'll return the the surface cash to shareholders in dividends and BuyBacks. Uh, and but then, as we get into the heavier capex in 272829, I think you'll see us go back to the, the bond market. Like there's nothing here. We have no principles here in terms of the, you know, having debt are being debt, free. It just because of this kind of slightly strange. It's the, it's the first time in 30 years we go through, a kind of a 2 year period with very little cap. Aircraft capex, pay down the debt and then, uh, we can always refi again in 2829, uh, from our position of strength.

He knows the competition. It's also one of the reasons why they need to get air fares up in the next year or two to ask their financing costs are rising as they have a huge leasing obligations and why I think our underlying airfares may well rise into 27, and 28, whereas our unit cost will be well under control.

Thanks for the question next question please.

The next question guys, Hey, James <unk> of Bank. Please go ahead.

Dave.

Thanks for taking the question.

Follow ups, firstly, just on the Max 10 deliveries.

Do you know how many deliveries to other airlines are in front of you in the Q I mean, it looks like various airlines like United Alaska, <unk> been pushing back some accent deliveries in 'twenty six 'twenty seven so I'm just trying to gauge the risk profile to year the program gets pushed back.

And you know, I don't know. You want to add anything on that. On the the yeah, I I agree. I agree with that, Michael. I mean, it's very much uh, down to a cost decision at the moment. The cheapest way to fund ourselves is out of our own cash resources. Um, and and, and that, that's why we've decided to repay that Bond over on cash. We've got nearly a billion in dry powder in the form of our undrawn revolving credit facility. And as we've done in the past, we'll be opportunistic. When we go back uh, to the bond market. We'll go back at a time of our choosing and not just because there's a bond uh, maturing and and we have to roll it, roll it over and I think that's how we will lock in the lowest cost ultimately long term uh for the group. So as Michael said it's it's not just we we have to be debt free it just it's going to fall that way. Uh, for for a period.

Period of time, and then we'll be back in the markets again.

I guess it is lower now.

As airlines, but would love your thoughts there and then secondly, just following up on your comments around forward bookings being up one point in Q3 does that fully booked load factor level.

Between the peak and the shoulder periods in Q3, and I guess, what is the hot booked load factor level maintenance that you have in terms of pricing strategy in the latest market.

Okay. Thanks for that changed 80, but do they get to do the forward bookings, let me touch on the Max chance I mean, yes, one of the reasons why we're growing increasingly confident we can get our first 15 deliveries made in 2017, we're not delaying our micro 10 orders United who was the lead customer I think hasn't delayed once they see that we're talking about currency the Max 10.

We offered to step in we take any kind of Max tens they wanted to cancel but it has helped I think Boeing.

<unk> two.

And again, I would draw the point, you know, as you look forward in terms of unit, cost going forward effect 37, you look at our competitor Airlines uh across Europe. You know, the so-called low-cost Airlines they have huge net debt on their balance sheets, uh you know, aircraft leasing costs, uh, financing costs, and those costs are rising uh, into the uh, for the next year or 2. We will have zero financing costs. We own 650, aircraft completely unencumbered, uh, and it is another point of difference between us and the competition. It's also 1 of the reasons why they need to get airfares up in the next year or 2 to to answer financing costs are rising and they have a huge leasing obligations. Uh, and why I think our underlying Air Force May well rise into 27 and 28. Uh, whereas our unit cost will be well under control. So thanks for the question next question, please. Nia

Catch up with their production I understand is about two airlines in front of US I think west changes one Alaska might be another who are staying ahead of us in the Q there June deliveries in middle to late 2026.

The next question goes to James Goodall of Redbarn. Please, go ahead.

Not sure whether they get them or not around the you know I think there's a reasonable prospect that the lead customer is likely to get the first Max 10 deliveries in probably Q3 or Q4 of.

26.

We have about six months of headroom, therefore, before we get our first aircraft.

And I would be reasonably confident we will take them.

Yeah. Hi, hi. Hi, thanks for taking my questions. I just got a couple of follow-ups. So firstly, just on the MAX 10 delivery. Do you know how many deliveries to other airlines are in front of you in the queue? I mean, it looks like various airlines, like United and Alaska, they've been pushing back some MAX 10 deliveries from 2026 to 2027. So I'm just trying to gauge the risk profile to you if the program gets pushed back any further, which I guess seems lower now because of the first from those airlines. But we would love your thoughts there. And then, secondly, just follow-up.

I don't think it will be the lead operator, I don't think we get the first Max 10 aircraft, but we might be second or third in the queue and to those.

Tim I might have made no sense for United or some of those other I said to postpone the Max 10, because you postpone dimension of the late Twenty's or already tells you you're just paying a couple of more years of escalation.

Going up from your comments around forward bookings. Being up 1 point in Q3, does that forward the book load factor levels differ between the peak and the shoulder periods in Q3? And I guess, what does the higher book load factor level mean for you in terms of pricing strategy in the latest market? Cheers.

I would rather take the aircraft as quickly as I can get them.

We don't have basically well we have that we built in our price.

Prices averaged over the lifetime of the deliveries in 2027, and 2034 I want those aircraft as soon as I can possibly get them I would happily taken aircrafts any aircraft that is 20% more seats in burns, 20% less fuel will be and economically much more efficient and environmentally much more efficient aircraft to offer each year.

Europe, and I would take as many as I can get as soon as I can get them, which is why we stepped in when United Stupid, He announced that they would maybe take there as I said, we didnt take anything that you and I just want to cancel they finished up not canceling it just postponing.

Okay, thanks for that. James Eddie will do the do the forward bookings. And let me touch on the max 10s. I mean, yes 1 of the reasons why, you know we're growing increasingly confident, we get our first 15 deliveries in 27 is we're not delaying our Max 10 orders United 2 were the lead customer I think has delayed or 1 says they were talking about canceling, the max 10s we offered to step in. We take any kamax 10s, they wanted to cancel, but it has helped I think going uh to uh, catch up with their uh, production. I understand it's got 2 Airlines in front of us. I think WestJet is 1 Alaska. Might be another who are still ahead of us in the queue. They're due deliveries in Middle to late 2026.

I think we're about third or fourth in the Q, but it'll be a reasonably sharp to I think the first deliveries will take place in Q3 or Q4 dollars 26 in our first 15 or in the spring of 2007, Eddie do you want to talk about forward bookings through November December maybe into Q4, I mean, where do.

People worry about 10% book, so very little for Q4, so it raises the visibility there.

If you look forward to November and has required some price.

Not sure whether they'll get them or not around the, you know, I think there's a reasonable prospect there. The lead customer is likely to get the first Max 10 deliveries in probably Q3 or Q4 of, uh, 2026. Um, we have about six months of headroom, therefore, before we get our, uh, first aircraft, uh, and I would be reasonably confident we will take them. I don't think we'll be the lead operator. I don't think we'll get the first Max 10 aircraft, but we might be second or third in the queue. Uh, and to those, you know, if make to my.

Stipulation, we're happy with what happened with load factors.

If you look at December and and.

In January I mean, we've learned as well as the previous years in terms of.

Tripping, our schedule says well, there, particularly as we get into the younger.

It just made no sense for United or some of the others to postpone the MAX 10 because, you know, you postponed them into the late 20s or early 30s. You just take a couple of more years of escalation. Um, I would rather take the aircraft as quickly as I can get them. Uh, we don't have escalation. Well, we have built in our, uh, price.

Beyond the first 10 days of January at all.

Also during some trimming around the early December so.

We're at a base.

70, 677% for November.

Our bookings are ahead of where they are marginally ahead of where they've been for each of those multiples November it looks like November December and January comfortable with what we're seeing with the November is the one that needs a little bit of needed price stimulation.

To get there, but it looks like we just have to dig too deep, but we're ahead.

And so we're happy what you do have limit is you do have limited visibility like really like with temperature bookings for Q4, you have nobody else has it been whatsoever.

Okay.

Thanks for that James next question. Please.

The next question goes to many back Kayani of Bank of America. Please go ahead.

Minivan right.

Hi.

I just wanted to follow up on.

Your outlook for the fourth quarter and why are you, saying, there's no Easter benefited you pick is that is the earlier Easter and a couple of days would fall into the end of that so just wanted to understand your thinking around kind of the base effects into the fourth quarter.

As soon as I can possibly get them, uh, I would happily take an aircraft, any aircraft that is 20% more seats and burns. 20% less fuel will be an economically, much more efficient and an environmentally, much more efficient aircraft to operate here in Europe. And I would take as many as I can get, as soon as I can get them, which is why we stepped in when United stupidly announced that they wouldn't maybe take theirs. I said, well, we'll take anything that you might want to cancel. They finished up not canceling and just postponing, uh, but I think we're about third or fourth in the queue, uh, but it'll be a reasonably short queue. I think the first delivery is going to take place in Q3, or Q4, or 26, and our first 15 are in the spring of 27. Eddie, do you want to talk about forward? Bookings, through November December maybe into Q4. Yeah, I mean, with with, it's too forwardly but 10% books, so very little uh, for Q4. So very little visibility there. Uh, like uh if you look forward to say November has required some uh price uh stimulation but we're happy with, we're happy with load factors, um,

And then just on E T S.

What type of increase should we be expecting in fiscal 'twenty seven because it looks like hedging levels on that I'd, just 7% right now and the prices have gone up so how much fuel savings could be offset by the ETS.

If you look in December. Um, and uh, and January, I mean, we've learned as well for 3 new peers, in terms of, uh, trimming our schedules as well. They're, uh, particularly as we get into the, um, beyond the first 10 days of January, and also doing some trimming around the, the, uh, early December as well. So look, um, we're about, you know, 70, uh, 6777

ETS cost going up thank you.

Oh, Yeah, I don't know if you can tell my father, who the drinks or sustained dependency maybe safety ETS question, Oh, many but let me deal with the outlook, Yes, Easter Sunday next years on the first of April So the first weekend of the buyout of the school holidays will fall into the last weekend in March, but it's not significant we really get the lift.

Basically a bump but I think at this point that we're better off just say look there'll be no Easter benefited in Q4, if we get a nickel in the last two days of March grayish, but really most of it will flow into April.

Where they, they're marginally ahead of where they've been for each of those multiples of November, like, November, December and January comfortable. With what we, what we're seeing but the November is the 1 that needed a little bit of needed price stimulation, um, to to get there. But nothing we didn't have to dig too deep but we're, we're ahead, you know? And so we're happy. What you do have limited. You do have limited visibility and I really like the 10% of bookings for Q4, you've no real visibility whatsoever. So happy. Hey, thanks for that James. Next question please. Daniel

The next question goes to Maneuver Kayani of Bank of America. Please go ahead.

It's really only when do you get any strong eye on at the end of the 31st of March are forced vapor do you see the first is we did two years ago with the first half of Easter was in the prior year Q4, almost all of the impact of Easter next year would be in Q1 there'll be a couple of days in March and if we get a little bit of a benefit out of that well and good but there are certainly no point in <unk>.

I would now go Ooh two days of Easter in March next year, what would you do with Bugger-all data visibility in Q4.

And we won't have any until we get into the Q3 numbers in February.

That's all we're trying to communicate now mint EBIT at and now I'll turn to optimistic tone for the ETS outlook for FY 'twenty, seven and you want to touch on 28 yet.

Well just be curious to voluntarily in between now and then.

Hi. Hi. Um, I just wanted to follow up on, um, your outlook for the fourth quarter. Why are you saying there's no Easter benefit? Because there is the earlier Easter, and a couple of days will fall into the end of that. So, I just wanted to understand your thinking around, kind of, uh, the base of facts into the fourth quarter. Um, and then just on UETs, um, what sort of increase should we be expecting in physical 27? Because it looks like hedging levels on that are just 11% right now, and the prices have gone up. So, how much of those fuel savings could be offset by the UETFs cost going up? Thank you.

I think that Neil alluded that outlook.

Look we think the Etfs are SaaS calls go from one 4 billion. This year somewhere between 141 5 million next year and dependent on the editor enough operator pricing is obviously this higher prices or higher going into next year.

The final loss free allowances, so somewhere if it's even more clinical portfolio.

Thomas.

Promised isn't worth pointed eylea.

Big step up as well that where we're going to have.

Well, it's the last step off the last of the allowance is obviously prior price and changes in his life.

Hopefully well see.

Apple, but that level the following year until Monday.

<unk> 2000, <unk> you do see the mandates grow a bit the U K literally since Randy Cherokee, but obviously given it's only it's a portion of our business and if we don't get the full impact of the Oxford alone.

Okay.

Sorry go ahead I hate it calls into question you know if Europe is serious about being competitive this bullshit tax needs to be rolled back we need to bring in in language or see it and it's one of the reasons.

Okay, I'll ask him Thomas, Fowler who's the director of sustainability move safety, ETFs question, uh, for your money, but let me deal with the Outlook. I mean, yes Easter Sunday. Next year is on the 5th of April, so the first weekend of the, the bank of the school holidays will fall into the last weekend in March, but it's not significant, we will get a little bit of a bump, but I think at this point that we're better off, just say look, there'll be no Easter benefits in Q4. If we get a little bit in the last 2 days of March, great. But really, most of it will flow into April. You know, it's, it's really only when you get an Easter on, on the end of, you know, the 31st of March, or 1st of April, you see the first as we did, 2 years ago, the first half beast, it was in, uh, the the prior Q4 almost all of the impact of each year. Next year will be in q1, there'll be a couple of days in March, and if we get a little bit of a benefit out of that, well, and good, but there's certainly no point in going out. Now going, oh, we have 2 days of Easter in March next year. Whoopi, do we b***** all very visibility in q.

Unwinding of the free Etfs, it's why Lufthansa Air France, IAG are now much more vocal about the need to.

They have a fair and level playing field on environmental taxes in Europe, we can't just be taxing ourselves say detect in Europe on MTV Americans to go to stay Asians and everybody else I guess simply insane OLED Europeans would sign something stupid on self defeating.

Uh, and we won't have any until we get out into the Q3 numbers in February. Uh, and that's all we're trying to communicate now, maybe. But, uh, and now I'll turn to optimistic Tom for the ETS outlook for FY 27. Do you want to touch on 28s? So when we shoot our stuff under lane between now and then, but then he may even need a new this year to somewhere between $1.4 billion and $1.5 billion. Then.

And therefore, I think the more we can't allowed more than louder, we campaign to more like deal what we ought to see some.

Progressive reforms.

And pushing back on this bullshit.

Next question please.

The last question does he will read kind of line of research RBC capital markets. Please go ahead Lori.

Next year, and depending on the editor and where the pricing is, obviously prices are higher. It's going into next year and we have the young boy to find the loss of the free allowances. So, somewhere between $1.4 and $1.5 billion, Thomas, Thomas, Thomas, is it worth pointing out? That's the last big step up as well, that we're going to have.

Hi, Good morning first question a follow up on the previous one so it sounds like you're not focusing all of its lobbying efforts on sustainable aviation fuel mandates would you like to see any change if that's the rules in the U K U.

And then I'm wondering if you'd be willing to comment what UK. His thought the two from the Q2.

You won't see it, stand up at that level the following year until mandating free on Saturday for 2030. We do see the mandates. Grow a bit, the UK, literally for 2030 but obviously given it's it's on your it's a portion of our business doesn't have we don't get the full impact of that through the line.

Stature and Super 42, or three key booking trends.

Sorry could you speak up you're very faint there on the I got the first half with the SaaS once the second question.

Yeah. The second question on the U K.

The UK dogpatch the tool from the Q2 fat trends you've reported a Q3 booking trends you're seeing across the group. Thank you.

Okay.

Soft.

I'm not a believer in I'm, sorry, I'm, a believer it fast, but there is simply a volumes will not be there to meet the EU, 6% mandate by 2030 are the Uk's insane, 10% mandate you have the oil majors at the moment is rolling back from the production of SaaS.

Under pressure in the White House, I think Gary I think.

Yeah. Okay. And again, I sorry, go ahead and it calls into question, you know, if you're a serious about being competitive, this b******* tax needs to be, uh, rolled back. We need to bring it in line with, uh, Garcia and it's 1 of the reasons this on, on winding of the free ETFs, is why left-handed Air France? IH are now much more vocal about the need to, uh, to have a fair and Level Playing Field on environmental taxes, in Europe. We can't just be taxing ourselves to, to debt in Europe and exactly the Americans, the gulf, the Asians. And everybody else like it's simply insane. Only the Europeans would sign something this stupid and self-defeating. And therefore I think the more we can't allow the more and louder we campaign, the more likely you are, what we are to see some uh Progressive reforms uh and pushing back on this b*******.

I joined and I support the call of all the 840 Airlines in Europe, we need to move these mandates to the right.

Next question, please.

We may get to 6% or 10% by trenching, Turkey fight, but theres no promise, but theyre getting there in 20, <unk> and I would be surprised even if it if the if the oil majors don't produce this off there's nothing we can do to supply. It. These are just another example of European and British and European Ah.

The last question goes to Rory. Colin from RBC Capital Markets. Please go ahead, Rory.

Lack of competitiveness.

The environmental agenda, you know, there's a war in Ukraine, you prompted the White house there is no.

And there is no I think.

Hi, good morning. Yeah, first question, follow up on the previous one. So, it sounds like you're not focusing a lot of lobbying efforts on sustainable aviation fuel mandates. Would you like to see any changes there to rules in the UK or EU? Um, and then I wondered if you'd be willing to comment on whether the UK has diverged at all from the EU to, uh, fair trends you've reported or through Q booking trends. Thank you. Sorry to speak up. You're very faint there on the... I got the first half, which is, um... What's the second question?

What is the word I mean, there is no significant weather.

The whole environmental agenda is movie to backwards, we need competitiveness in Europe, and if the Swedes who are the home of the originally an environmental tax in flight shaming and or if they've worked out that graduate was wrong and there are policy their environmental tax then surely the rest of the dodos in Europe.

Uh, yep, the second question on the UK has, uh, the UK diverged, the tool, from the Q2 fair trends you've reported, or Q3 booking trends that you've seen across the group. Thank you.

Okay. Uh, look s.

If it was likewise, so I think there is I think very different prospect of those south mandates. The mentioned 20, Turkey I don't think as an industry, we should abandon SaaS, but we do need a much more either Europe and European governments should use some of the environmental taxation. This astonishing estimates are these aren't ETS taxation.

Centralized production of SaaS or move the soft mandates and the rates are for drugs turkeys.

There's nothing we see divergence in the UK, Oh, sorry, a lot of thought to ADR, Hey, do you want to answer that question U K Q3 fairs, and really like I said like in November required price stimulation and even though.

You know, I'm not a believer. I'm sorry, I'm a Believer in sap, but I mean there is simply. They volumes will not be there to meet the EU 6% mandate for 2030. Are the UK's, insane, 10% mandate, you have the oil majors at the moment, rolling. Back from the production of SAS, uh, under pressure in the the White House. I think there is a, I think, uh, I joined, and I support the call of all the A4 Airlines in Europe. We need to move these mandates to the right. Uh, we may get to 6% or 10% by 2035 but I think there's no Prospect of getting there in 2030 and I would be surprised even if, if the if the oil Majors don't produce this app, there's nothing we can do to, uh, Supply it

If you look at it.

That is your UK measure for us.

First of all of our seats.

The U K like where where you got that.

You do see some price pressure there, but trusted in November a lot of capacity that's gone in there in the market I think it's called me a lot more fresh.

These are just another example of European, uh, British and European, uh, lack of competitiveness and the environmental agenda. You know, there's a war in Ukraine, your trumpet, the White House. There is no, um, um, there is no I think, um,

uh,

Pressure for our competitors, it's a very small part of it if you look at the rest of the U K our city to city are exiting traffic to the UK to ours is all of that that's in line with the rest of the network. That's only a slight cold out there in terms of U K U K measure I would say.

None of it would be focused in the region a lot of capacity within post COVID-19 some of that with our competitors way in terms of holidays last year I think that created more of a pay when we get into those things.

what is the word I move? There is no significant where Latin if anything, uh, deal. The the whole environmental agenda is moving to backwards. We need competitiveness in Europe and if the swedes who were the home of the original environmental tax and fight saving, you know, if they've worked out that Greta was wrong and their abolishing their environmental tax then, surely the rest of the dodos in Europe will will will go, will do likewise

Are you seeing any divergence in UK.

UK traffic in Q3 compared to non nuclear or your traffic.

In fact, the only call. It I would have is you can't measure it in November.

As I said very small parts of our business and the rest of the UK is as robust as the rest of the network Eurosport.

Does that answer question.

Yeah. Thank you.

Okay.

Any other questions I'm not yet.

We currently have no questions.

Okay.

Folks. Thank you very much I think we don't want an hour and 25 minutes a week.

Take your time on the call. We have extensive road shows are on the road I aren't in UK Europe North America for the remainder of this week, if you'd like a meeting or a one on one please contact us either through Jamie here, our head of IR, Our toothbrush City Davies good buddies, thanks to Sydney, Dave He's a good body as far a range you can facilitate.

So I think there is I think very little Prospect of those South mandates being met in 2030. I don't think as an industry we should abandon that but we do need a much more either. Europe and European governments should use some of the environmental taxation this astonishing the essay is path or the authority ETF tax taxation to incentivize the production of SAS are moved at the South mandate to the right of further out into 2030. Um, there's nothing, uh, we see Divergence in the UK. Uh, sorry, I learned that to 80 81 cents, that question UK, Q3 fairs and yields, I mean, like, as you said, like in November required, price stimulation. And even though we, uh, if you look at UK Leisure UK Leisure for us, as the first of all of our seats, you know,

The road show.

We look forward to meeting you all at some stage over the the remainder of this week.

If anybody wants to come visit us in Dublin. After that please feel free as long as you fly Ryanair will be happy to meet you and otherwise.

I think we're reasonably cautiously optimistic on the outlook and if not a day for the next 12 months, but I think for the next four or five years keep focusing on the fundamentals capacity is going to remain constrained in Europe. We are doing much better deals with airports across Europe governments selected are increasingly reversing these <unk>.

Mental taxes, and therefore, I think there's a reasonable I'd be reasonably cautious that we're going to see controlled grocery to 250 million passengers by 2030 300 million passengers by 2034 and there is a prospect.

Are you seeing any Divergence in UK, uh, in queue UK traffic in u3 compared to non UK or EU traffic? The only call is that I would have is some of the UK leisure in November and it's a very small part of our vehicle and the rest of the UK is, as robust as the rest of the network European, okay, where is that? Answer the question?

Yeah, thank you.

Good. Okay.

Any other questions? Um, Nadia

So remind us the occasional unforeseen event.

we currently have no questions.

Profit net profit per passenger will over that period of time, although locally.

From a turn towards 12 towards 14, Eurostar passengers and we hope you'll all join us for the ride and see where it goes over the next four or five years. Thank you for your time and look forward to meeting this week and thank you very much the wrap it up there. Thank you.

Okay. Uh, this is folks. Thank you very much. I think we've done what an hour and 25 minutes. Uh, we appreciate your time on the call, we have extensive Road shows on the road, uh, Ireland, UK Europe, North America for the remainder of this week. If you'd like a meeting or a 1-on-1. Please contact us, either through Jamie here or head of ir or through the city Davies, good buddies. Thanks the city's Davies, a good buddies for, uh, a range of facilitating The Road Show and we look forward to meeting you all at some stage over the the remainder of this week. Um, if anybody wants to come visit us in Dublin after that, please feel free. Uh, as long as you fly right there, we'll be happy to meet you. Uh, and otherwise, you know, I think, uh, we're reasonably cautiously optimistic on the Outlook. Um, if not, if the for the next 12 months, but I think for the next 4 or 5 years, keep focusing on the fundamentals capacity is going to remain constrained in Europe. We are doing much better deals with airports across Europe, government selected our in,

...increasingly reversing these environmental taxes. And therefore,

I think there's a reasonable, uh, I'd be reasonably cautious that we're going to see control growth, certainly to 250 million passengers by 2030, 300 million passengers by 2034, and as a prospect, plus or minus the occasional unforeseen event, uh, that's, uh, profit net profit per passenger will over that period of time. Uh, although lumpy, uh, move from, uh, $10 to $12, $14 years per passenger. And we hope you'll all be, uh, join us for the ride and see where it goes over the next 4 or 5 years. Thank you for your time. Look forward to meeting you this week and, uh, thank you very much for the wrap. I'll wrap it up there. Now, you please, thank you.

Thank you. This now concludes today's call. Thank you all for joining. You may now disconnect your lines.