Ryanair announced Q3 result and €400m share buy-back programme

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By admin February 3, 2015 17:26

Ryanair announced Q3 result and €400m share buy-back programme

Ryanair has announced a third quarter net profit of €49m compared to loss of €35m in the year-ago quarter.  Traffic grew 14% to 21m customers as the average fare rose 2% to €40.  Revenues grew 17% to €1,132m while unit costs fell 6% (ex-fuel flat).  Load Factors rose 6% points from 82% to 88% – this success is credited by the airline to the continuing success of its “Always Getting Better” customer programme and its “significantly expanded winter schedule”.

Ryanair’s CEO, Michael O’Leary, said: “As 2015 will be Ryanair’s 30th year of bringing low fares to Europe, we are pleased to report a Q3 profit of €49m.  These strong results confirm that our “Always Getting Better” customer programme and our expanded business schedules, coupled with our substantial fare and cost advantage over competitor airlines is drawing millions of new customers to Ryanair.

Ryanair has gross cash of €4.1bn and a net cash balance of €447m.

Ryanair has further extended its fuel hedges into FY17.  “We are 90% hedged for FY15 at $95 pbl and FY16 at $92 pbl and are 35% hedged in FY17 at approx. $68 pbl.  Our US$ op-ex is 90% hedged at $1.33 in FY16, and 60% hedged at $1.21 in FY17.  If current rates continue this would deliver an indicative reduction in our fuel cost per passenger of approx. 8% in FY16 and approx. 16% in FY17.  Our capex programme is fully hedged to September 2017 at a rate of $1.35, which locks in significantly lower cost aircraft deliveries over the next 2 years,” the airline stated.

A €520m special dividend (€0.375 per share) will be paid on 27 February, said Ryanair, which has also announced a €400m share buy-back programme that will commence on 12 February.  This systemic programme will, subject to market conditions, be executed over a six month period from Feb to August 2015.

Ryanair also confirmed in its announcement that it has not received any formal approach or offer for its shares in Aer Lingus by IAG, adding “we will not engage in any speculation about this proposal, other than to restate our position which is that the Board of Ryanair will carefully consider any such offer, should one be received, from IAG or any other party, in due course”.

For the full year, Ryanair expects traffic to increase to just over 90m as load factors rise to 87%.  Q4 traffic is expected to grow approx. 25% but average fares will fall by -6% to -8% as the airline uses lower fares to expand its network and develop its business schedules.  “We have noticed a softening in prices for forward bookings during the first weeks of January.  FY unit costs will fall by 5% due to lower oil prices (on our unhedged 10%) and these stronger load factors.  As a result we are raising our FY net profit guidance (was €810m-€830m) to a range of €840m-€850m.”

admin
By admin February 3, 2015 17:26