4th Oct 2005 09:00
Ryanair Holdings PLC04 October 2005 Ryanair Exercises 9 Further Boeing 737-800 Options - Increases Fleet including Firm Options to 234 Ryanair Holdings plc today (Tuesday, 4th October 2005) held an Investor Day inLondon. At this meeting the airline updated investors on current trading andalso confirmed the exercise of 9 further Boeing 737-800 options for delivery in2007 along with the planned sale (in 2007) of 5 Boeing 737-800's purchased in1999. Speaking in London, Michael O'Leary, Chief Executive Officer said: "Current trading continues to be in line with expectations. Higher fuel prices over the summer months have been partly offset by a combination of other cost reductions and slightly more benign yield environment. Passenger volumes and load factors have been strong over the summer and in August we achieved a significant milestone by carrying more passengers on our short haul European network than British Airways (now just the worlds 2nd favourite airline) did on their entire worldwide network. "Looking forward to the winter we remain cautious. We expect yields to benefit from the multiple fuel surcharges imposed by the high fare carriers across Europe. However, we anticipate that the fare differential between Ryanair and the flag carriers will be partially eroded as the fuel surchargers are forced to lower their underlying fares to compete with Ryanair's lower prices. We therefore remain cautious but comfortable with our previous guidance for the remainder of this fiscal year as we anticipate strong load factors and passenger volumes but as expected, at slightly lower yields. "The recent announcement of the cessation of the Boeing strike will in turn enable our aircraft deliveries to be "back on track" by the end of December 2005. We anticipate there will be no material adverse impact on the company's financial performance or passengers carried arising from the strike. "I am also pleased to announce that we have exercised options to purchase 9 Boeing 737-800's with a value of over $500m dollars for delivery in late 2007, (3 in September, 2 in October and 4 in November). We also plan in late 2007 to sell on the first 5 of our older Boeing 737-800's, which were delivered in 1999. This is a continuation of Ryanair's strategy of operating the youngest fleet in Europe, with the lowest unit operating costs and best technical reliability, thereby ensuring that Ryanair remains the number 1 on-time major airline in Europe. These 4 incremental option aircraft will in turn enable Ryanair to develop even more new routes while we continue to lead the low fare revolution across Europe". The company currently operates a fleet of 83 Boeing 737-800's and 9 Boeings737-200's. The exercise of these 9 options and the planned sale during late 2007of the 5 aircraft acquired in 1999, combined with the existing firm Boeingcommitments will in turn lead to Ryanair's fleet increasing by 151 aircraft to234 aircraft by 2012. In addition the company has options over a further 179aircraft for delivery between 2008 and 2014. Summary of Firm Aircraft Commitments & Options Firm Commitments ( All Boeing 737-800's) Current Fleet 83 Firm Deliveries 147 Options Exercised 9 Sale in 2007 (5) Total Fleet by 2012 234 Options Existing Options 188 Options Exercised (9) Total Options Available 2008-2014 179 ENDS. Tuesday, 4th October 2005 For further information Howard Millar Pauline McAlesterplease contact: Ryanair Holdings Plc Murray Consultantswww.ryanair.com Tel: 353-1-8121212Tel: 353-1-4980300 Certain of the information included in this release is forward looking and issubject to important risks and uncertainties that could cause actual results todiffer materially. It is not reasonably possible to itemise all of the manyfactors and specific events that could affect the outlook and results of anairline operating in the European economy. Among the factors that are subject tochange and could significantly impact Ryanair's expected results are the airlinepricing environment, fuel costs, competition from new and existing carriers,market prices for the replacement aircraft, costs associated with environmental,safety and security measures, actions of the Irish, U.K., European Union ("EU")and other governments and their respective regulatory agencies, fluctuations incurrency exchange rates and interest rates, airport access and charges, labourrelations, the economic environment of the airline industry, the generaleconomic environment in Ireland, the UK and Continental Europe, the generalwillingness of passengers to travel and other economics, social and politicalfactors. Ryanair is Europe's largest low fares airline with 15 bases and 266 low fareroutes across 21 countries. By the end of March 2006 Ryanair will operate anentire fleet of 107 new Boeing 737-800 aircraft with firm orders for a further127 new aircraft (net of planned disposals), which will be delivered over thenext 7 years. Ryanair currently employs a team of 2,900 people and expects tocarry in excess of 35 million scheduled passengers in the coming financial year. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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