Ryanair Holdings Plc Q2 FY2025 earnings call

• Traffic growth: 9% to record, but Boeing delays impacted. • Fares: Average fares down 10% in H1, trend improving (down 15% in Q1, 7% in Q2). • Fleet: 172x B737 Gamechangers, 5 new bases, 200 new routes opened. • OTA partnerships: Over 90% of OTAs approved, protecting customers from overcharging. • Hedging: 85% hedged for H2 FY '25 at $79/bbl, 75% hedged for FY '26 at $77/bbl. • Share buyback: Completed EUR700 million, ~30% of EUR800 million follow-on done, expects to run until Apr/May 2025. • Cost discipline: Operating costs rose 8%, lagging traffic growth, with field savings offsetting higher staff costs.

Ryanair reported H1 after-tax profits of EUR1.8 billion, 18% lower than prior year. Revenues rose 10% to EUR2.74 billion, with traffic growing 9% to a record of 115 million (despite Boeing delays). Operating costs rose 8%, lagging traffic growth. Fleet details: 172x B737 Gamechangers, 5 new bases, 200 new routes opened. Approved OTA partnerships cover over 90% of OTAs, protecting consumers from overcharging. Balance sheet strong with gross cash over EUR3.3 billion, net cash EUR600 million.

• Passenger numbers: Originally expected 205M for FY '25, revised to 200M; FY '26 originally 215M, revised to ~210M (dependent on Boeing deliveries). • Q3: Bookings strong, pricing declines moderating. • Q4: Challenging prior year comp as half of Easter was in prior Q4. • No meaningful FY '25 PAT guidance yet; depends on avoiding adverse developments like Boeing delays, geopolitical risks.

• Boeing delivery delays: Impacting passenger numbers and traffic growth. • Geopolitical risks: Conflict in Ukraine, Middle East, affecting operations. • ATC short staffing and capacity restrictions: Disrupting operations and potentially affecting traffic.

Q: James Hollins from BNP Paribas asked about ATC situation and OTA impact.

A: Michael O'Leary said ATC issues lasted into summer, OTA dispute hit load factors but 90% of OTAs now approved.

Q: Harry Gowers from JPMorgan asked on ex-fuel costs and delay compensation.

A: Neil Sorahan said delay compensation modest, ex-fuel costs improving, guiding unit costs broadly flat.

Q: Stephen Furlong from Davy asked about growth allocation and Dublin airport cap.

A: Michael O'Leary talked about reallocating capacity to airports with lower taxes, optimistic on Dublin cap resolution.

Q: Muneeba Kayani from Bank of America asked on OTAs and share buybacks.

A: Michael O'Leary said over 90% OTAs approved, Neil Sorahan discussed share buyback driven by spare cash and debt repayments.

Q: Dudley Shanley from Goodbody asked on MAX 7/10 certification and ATC disruption.

A: Michael O'Leary updated MAX 7/10 certification timeline, discussed ATC fixes needed.

Q: Alex Irving from Bernstein asked on MAX 10 and ancillary sales.

A: Michael O'Leary and Neil Sorahan talked about MAX 10 benefits and ancillary sales improving.

Q: Jarrod Castle from UBS asked on hedging and ownership control.

A: Michael O'Leary and Juliusz Komorek discussed hedging rationale and ownership control consultation.

Q: Sathish Sivakumar from Citi asked on ancillaries and SAF.

A: Michael O'Leary and Thomas Fowler talked about ancillary spend and SAF procurement.

Q: Savanthi Syth from Raymond James asked on cost items and app migration.

A: Michael O'Leary and Edward Wilson discussed cost upside and app migration benefits.

Q: Duane Pfennigwerth from Evercore ISI asked on overstaffing and buybacks.

A: Michael O'Leary talked about overstaffing costs and buyback drivers.

Q: Andrew Lobbenberg from Barclays asked on U.K. capacity and OTA eDreams.

A: Michael O'Leary discussed U.K. capacity trimming and eDreams OTA status.

Q: Gerald Khoo from Panmure Liberum asked on tax rate and aircraft delivery.

A: Neil Sorahan talked about tax rate assumption, Michael O'Leary discussed aircraft delivery impact.

Q: Conor Dwyer from Morgan Stanley asked on buyback and financing.

A: Michael O'Leary and Neil Sorahan discussed buyback drivers and financing options.