Ryanair pays attention to “fragile” recovery, Verates Boeing

Dublin-Ryanair cannot give detailed 2022 guidance on Monday other than expecting a return to “reasonable profitability” in the uncertainty of the COVID-19 and Ukraine wars. He said he knocked out the stock, albeit with a small annual loss.

Europe’s largest airline in terms of passenger numbers has also become the latest Boeing customer to criticize aircraft manufacturers. CEO Michael O’Reilly said management needs to step up and deliver aircraft more quickly or give way to a new team.

Ryanair posted a loss of € 355 million ($ 369 million) in the 12 months to March 31, when it was injured in a pandemic, this year from 97 million a year ago to 165 million. Plans to increase traffic to human passengers, a record of 149 million prior to COVID-19.

However, O’Leary said that providing wise and accurate goals is “unrealistic, if not impossible,” until the second half of the fiscal year.

He’s a little worried that while bookings have improved in the last few weeks, competitors are talking too much about the summer recovery and need to be careful for the expected recessionary winter. He added that he was.

“It’s too fragile and has too many moving parts,” O’Leary said, adding that Ryanair would still thrive if one of the markets goes into recession due to its low cost base.

Chief Financial Officer Neil Sorahan told Reuters that fares have been lower than expected in recent weeks. O’Leary said it is impossible to predict winter prices, although he is cautiously optimistic that peak summer fares are “slightly ahead” of pre-pandemic levels.

Customers were also waiting until the travel time to book was much closer than usual.

Ryanair’s share price fell 0.2%.

Boeing talk

O’Leary also said that Ryanair was an active customer of Boeing and wanted to receive more 737-8200 jets than planned over the next two years, but used unless Boeing strengthened some. He said he could turn to the leasing market and promote further growth. Additional order.

According to industry sources, Ryanair has placed a market bid for 50 jets.

Last year, Ryanair left negotiations with Boeing for the next 200 737 MAX 10, the largest single-aisle aircraft.

O’Leary described Boeing’s management on Monday as “running around like a headless chicken,” and said “they need to improve bloody.”

“Boeing needs to restart management in Seattle, and existing management needs to enhance the game or change existing management,” O’Leary told analysts.

Boeing declined to comment.

O’Leary has been relentlessly blaming Boeing for the past year for what many industry executives saw as a deadlocked MAX purchase negotiation tactic.

But his latest comment is widespread pressure on Boeing after two leasing industry leaders, Air Lease Corp’s executive chairman Steven Udvar-Hazy and Avolon’s CEO Domhnal Slattery questioned their leadership. Matched with.

In contrast, AerCap boss Aengus Kelly, head of the world’s largest lender, said last week he would put his weight behind Boeing to overcome recent problems.

Boeing stocks fell 2.5%.

At the end of April, Boeing expressed doubts about meeting its jet delivery targets as technical issues, inflation and supplier risk clouded the recovery.

Dave Calhoun, Boeing’s CEO, said at the time: And be aware of the costs associated with it. “

O’Leary hedged 80% of fuel demand in 2023 and 10% in 2024, and Ryanair is likely to make a profit next year, even if the outlook is worse than expected, but before the pandemic He said it was well below the standard. ..

($ 1 = 0.9619 euros)

By Padraic Halpin and Conor Humphries