Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Ryanair cautious about 'fragile' recovery, berates Boeing

Stock Markets May 16, 2022 07:21PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Ryanair aircraft are seen at at dawn at Dublin airport Dublin, Ireland March 20, 2018. REUTERS/Clodagh Kilcoyne

By Padraic Halpin and Conor Humphries

DUBLIN (Reuters) -Ryanair said on Monday it was impossible to give detailed 2022 guidance beyond hoping for a return to "reasonable profitability" amid uncertainties over COVID-19 and the Ukraine war, knocking its shares despite a smaller annual loss.

Europe's largest airline by passenger numbers also became the latest Boeing (NYSE:BA) customer to criticise the planemaker. Chief Executive Michael O'Leary said its management needed to step up and deliver aircraft more quickly or make way for a new team.

Ryanair posted a 355 million euro ($369 million) loss for the pandemic-scarred 12 months to March 31 and said it planned to grow traffic to 165 million passengers this year, from 97 million a year ago and a pre-COVID-19 record of 149 million.

However, O'Leary said it was "impractical, if not impossible" to provide a sensible or accurate target until the second half of its fiscal year.

He added that while bookings had improved in recent weeks, he was a little concerned that competitors were talking up the summer recovery too much and that caution was needed heading into a winter with an expected economic downturn.

"It's too fragile, there remains too many moving parts," O'Leary said, adding that Ryanair would nevertheless thrive if any of its markets dip into recession due to its lower cost base.

Chief Financial Officer Neil Sorahan told Reuters that fares were lower in recent weeks than anticipated. While cautiously optimistic that peak summer fares will be "somewhat ahead" of pre-pandemic levels, O'Leary said it was impossible to predict winter pricing.

Customers were also still waiting until much closer than usual to the time of their trips to book.

Ryanair shares ended down 0.2%.

BOEING CRITICISM

O'Leary also said that while Ryanair remained a willing Boeing customer and hoped to receive more 737-8200 jets than planned over the next two summers, it could turn to the second-hand leasing market to fuel further growth unless Boeing stepped up with some additional orders.

Ryanair has issued a market tender for 50 jets, industry sources say.

Ryanair last year walked away from negotiations with Boeing for 200 of its largest single-aisle aircraft: the upcoming 737 MAX 10.

O'Leary described Boeing management on Monday as "running around like headless chickens" and said "they need to bloody well improve".

"Boeing need a management reboot in Seattle and either the existing management needs to up its game or they need to change the existing management," O'Leary told analysts.

Boeing declined comment.

O'Leary has persistently lashed out at Boeing over the past year in what many industry executives viewed as a tactic in deadlocked MAX purchase negotiations.

But his latest comments coincided with broader pressure on Boeing after two leasing industry leaders, Air Lease (NYSE:AL) Corp Executive Chairman Steven Udvar-Hazy and Avolon CEO Domhnal Slattery, questioned its leadership.

By contrast, the head of the world's largest lessor, AerCap boss Aengus Kelly, last week threw his weight behind Boeing and said it would overcome recent problems.

Boeing shares fell 2.5%.

At the end of April, Boeing expressed doubts over hitting jet delivery targets as technical problems, inflation and supplier risks clouded its recovery.

Boeing Chief Executive Officer Dave Calhoun said at the time: "We're going to deliver great airplanes. And we're going to recognize the costs associated with it."

O'Leary said Ryanair, which has hedged 80% of its 2023 fuel needs and 10% for 2024, would likely be profitable in the coming year, even if the outlook was worse than anticipated but that it would be significantly behind pre-pandemic levels.

($1 = 0.9619 euros)

Ryanair cautious about 'fragile' recovery, berates Boeing
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Curtis Greenlee
Curtis Greenlee May 16, 2022 5:03PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Want to know where Boeing’s headed? Take a close look at General Electric. That’s where Dave Calhoun’s mentor Jack Welch taught him how to cut thousands of jobs along with R&D budgets like a samurai. Yet, he walked away with several hundred million dollars on his exit.
Benjamin USA
Benjamin USA May 16, 2022 5:03PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Yup who needs engineers and machinists when you can cut cut cut and make the books look so much better for a few years.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email