Ryanair reduces passenger forecast, maintains interest in EI
Friday September 25, 2009
Ryanair yesterday said it now expects to carry 66 million passengers this year rather than 67 million owing to its cuts at London Stansted (ATWOnline, July 22) and Dublin (ATWOnline, June 18). At yesterday's annual general meeting in Dublin, CEO Michael O'Leary maintained the full-year guidance of an adjusted net profit at the lower end of the €200-€300 million ($295.8-$443.7 million) range (ATWOnline, July 28) and said average fares in 2009 will wind up about 20% lower than 2008.
O'Leary also said Ryanair is prepared to increase its investment in struggling Irish flag carrier Aer Lingus, although a third bid for EI is "highly unlikely." He said, "I do think Aer Lingus will need a major reorganization," according to Reuters and RTE (see story above). "They will come back to the existing shareholders which would be the government, the trade unions and Ryanair, presumably to raise some more money. We'd be happy to invest more money in Aer Lingus," in which it holds about 29%. "I can't foresee circumstances in which we would be interested in bidding again, but you never say never," he said. "I don't believe Aer Lingus has a future as a standalone independent airline." He also said Ryanair is 3-4 years away from being able to launch a long-haul subsidiary. "While the market or orders for short-haul aircraft has collapsed for both Boeing and Airbus, the long-haul order book has held up," he said.
Friday September 25, 2009
Ryanair yesterday said it now expects to carry 66 million passengers this year rather than 67 million owing to its cuts at London Stansted (ATWOnline, July 22) and Dublin (ATWOnline, June 18). At yesterday's annual general meeting in Dublin, CEO Michael O'Leary maintained the full-year guidance of an adjusted net profit at the lower end of the €200-€300 million ($295.8-$443.7 million) range (ATWOnline, July 28) and said average fares in 2009 will wind up about 20% lower than 2008.
O'Leary also said Ryanair is prepared to increase its investment in struggling Irish flag carrier Aer Lingus, although a third bid for EI is "highly unlikely." He said, "I do think Aer Lingus will need a major reorganization," according to Reuters and RTE (see story above). "They will come back to the existing shareholders which would be the government, the trade unions and Ryanair, presumably to raise some more money. We'd be happy to invest more money in Aer Lingus," in which it holds about 29%. "I can't foresee circumstances in which we would be interested in bidding again, but you never say never," he said. "I don't believe Aer Lingus has a future as a standalone independent airline." He also said Ryanair is 3-4 years away from being able to launch a long-haul subsidiary. "While the market or orders for short-haul aircraft has collapsed for both Boeing and Airbus, the long-haul order book has held up," he said.