The following is a summary of the Ryanair Holdings Plc (RYAAY) Q2 2025 Earnings Call Transcript:
Financial Performance:
Ryanair reported a first-half (H1) after-tax profit of EUR 1.8 billion, a decrease of 18% compared to the previous year.
Revenue increased by 10% to EUR 2.74 billion, tracking above the 9% traffic growth.
Operating costs were up by 8%, slightly less than traffic growth, despite higher staffing costs partially due to Boeing delivery delays.The company is 85% hedged for the second half of FY '25 at $79 per barrel and 75% for FY '26 at $77 per barrel.
Business Progress:
Anticipates slowing growth due to Boeing delivery delays, with revised passenger targets for FY '25 and FY '26.
Opened five new bases and launched 200 new routes; continues strategic OTA partnerships, now covering over 90% of all OTAs.
Plans to complete a EUR 800 million follow-on share buyback by mid-2025.
Declared an interim dividend of EUR 0.223 per share.
Opportunities:
Strong balance sheet enabling aggressive fuel hedging and share buybacks.
Expanded OTA partnerships to streamline customer bookings and secure direct sales. Aims for full OTA integration despite delays with certain OTAs.
Risks:
Continued impact of Boeing delivery delays, adjusting fleet expansion and growth forecasts accordingly.
Pricing pressures due to economic tightening in Europe, exacerbated by fewer aircraft deliveries impacting capacity.
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