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Speaker 1: Michael. I literally with this around the table to Ryan Michael,

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Speaker 1: I wish people could see your face as at Basting

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Speaker 1: were speaking, just to get some reaction.

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Speaker 2: It's going to see here. Good morning, It's great to

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Speaker 2: be here. John, Lisa, good talk to you again.

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Speaker 1: Well, thank you, buddy. You've had earnings out this morning.

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Speaker 1: We've been talking about this dividend of four hundred million euros.

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Speaker 1: We've got to talk about this relationship with Boeing. I

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Speaker 1: want to share a couple of quotes with you and

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Speaker 1: then try and get some clarity. So you said in

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Speaker 1: the last week, if anything, it's getting worse. I would

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Speaker 1: have been reasonably confident up until about a month ago

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Speaker 1: that we'd get fifty seven aircraft by the end of June.

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Speaker 1: I'm not confident. We heard from your CFO this morning.

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Speaker 1: So the worst case scenario is that we'll end up

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Speaker 1: with growth of forty seven aircraft next summer instead of

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Speaker 1: fifty seven. Help me understand where things are. What did

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Speaker 1: you want and what do you think you're going to get?

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Speaker 3: Yeah, I mean our case boy, are contracted to deliver

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Speaker 3: its fifty seven aircraft by the end of April twenty fourth.

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Speaker 3: In other words, fifty seven editional aircraft for summer twenty four.

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Speaker 3: At the moment that has slipped by the spirit production

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Speaker 3: issues in which you told boys awn production issues in Seattle.

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Speaker 3: I think now it looks like we'll get the leavers

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Speaker 3: maybe ten short by about the end of June. We're

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Speaker 3: all before we get forty five fifty aircraft by the

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Speaker 3: end of June. We said to Boe, we're not taking

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Speaker 3: planes in July and August because frankly we're too busy.

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Speaker 2: But we're reasonably hopeful.

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Speaker 3: That we'll get forty five fifty aircraft from they will

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Speaker 3: leave us short. I think that's inevitable at this point

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Speaker 3: in time, which means we'll have slightly slower growth next summer,

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Speaker 3: but we still add forty five aircraft, it'll still be

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Speaker 3: enough to enable us to grow traffic from one hundred

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Speaker 3: and eighty three million passengers this year to just over

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Speaker 3: two hundred million passengers.

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Speaker 1: It's a number you have in mind, Webby, you would

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Speaker 1: have to cut capacity the next summer.

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Speaker 2: There isn't.

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Speaker 3: I mean, we haven't yet announced for the capacity will

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Speaker 3: be next summer. As we said this morning, we have

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Speaker 3: ninety percent of our summer twenty four capacity already on

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Speaker 3: sales strongforward book is good pricing, but we can't commit

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Speaker 3: to the last ten percent until we get a.

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Speaker 2: Better picture from Bowie. I speak weekly with Dave Calhoun.

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Speaker 3: I think he's doing a good job in difficult circumstances.

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Speaker 3: I have less faith in the management in Seattle, but

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Speaker 3: I think you know, we're working closely with them. We

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Speaker 3: have our own people in Seattle, we have our own

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Speaker 3: people in Spurt in Whichito and anything we can do

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Speaker 3: to expedite these deliveries will do.

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Speaker 1: Because growth is so strong in Europe. What is it

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Speaker 1: about a management in Seattle what they're getting wrong?

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Speaker 3: I think there isn't enough focus there on a daily

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Speaker 3: basis on how do we get with these aircraft out?

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Speaker 3: Everybody is kind of ringing their hands blaming Wichita. You

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Speaker 3: know a lot of the issues are in Seattle as well.

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Speaker 3: They need a more crisis I would like to see

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Speaker 3: greater crisis management in Seattle and greater focus on quality control.

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Speaker 3: If you you know, I don't understand how Wichita spirit

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Speaker 3: and which we're able to have this succession amount of

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Speaker 3: production problems if Boeing's quality control was up to speed,

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Speaker 3: do you have options options in terms of.

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Speaker 1: What do you do if you don't want to work

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Speaker 1: with Boeing anymore?

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Speaker 2: I don't know.

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Speaker 3: Let's say we want to work with Boeing. We're Boeing's

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Speaker 3: biggest customer by a mile in Europe. We're a committed

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Speaker 3: Boeing customer. Now, I would buy Airbus aircraft if they

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Speaker 3: were five percent cheaper per seat than Bowie, but Boeing

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Speaker 3: continue to beat Airbus on pricing. The seventy thirty seven

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Speaker 3: Max is a phenomenal aircraft, like we've we now this summer,

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Speaker 3: we've flown one hundred and twenty five of.

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Speaker 2: The Max eight aircraft.

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Speaker 3: We're carrying four percent more passes, we're burning sixteen percent

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Speaker 3: less fuel. You know, they're transformative in terms of the

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Speaker 3: engine and aircraft efficiency. We've ordered three hundred Max tens,

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Speaker 3: which will allow us to carry two hundred and twenty

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Speaker 3: eight passengers per fight and burn twenty percent less fuel.

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Speaker 3: So they're making great aircraft. It's just they're not making

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Speaker 3: them on time or delivering them in time.

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Speaker 1: Is it fair to say, now this is a relationship

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Speaker 1: you're stuck with regardless of what it delivers next year?

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Speaker 3: I mean, yes, you know we're committed to Boeing. If

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Speaker 3: you look around the world, the aircraft manufacturers, I mean

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Speaker 3: Airbus are no better than Boeing at the moment. The airbus

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Speaker 3: are way behind on their deliveries too use the P

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Speaker 3: and Whitney engine, which is going to be a real

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Speaker 3: crisis next summer across the A three twenty fleet in Europe.

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Speaker 3: You know, the parent and Whitney engine is going to

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Speaker 3: ground a significant number of AirBoss aircraft next summer. So

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Speaker 3: all of the aircraft manufacturers are challenged. We're a very

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Speaker 3: proud Boeing customer. I think Boeing will get its act together.

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Speaker 3: It's just taking a bit longer than we had originally hoped.

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Speaker 4: In the meantime, how far can you jack up prices

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Speaker 4: if capacity is constrained?

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Speaker 3: I mean I think that the real issue for at

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Speaker 3: least is not how much will we jack up prices?

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Speaker 3: How much will Loftanza or France, IAG or BA keep

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Speaker 3: jacking up price And the answer is a lot. You

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Speaker 3: know your control estimate this summer, Europe's operated about ninety

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Speaker 3: four percent of pre COVID capacity. That includes US growing

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Speaker 3: by twenty five percent. So take Ryan Air away. Europe

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Speaker 3: still at less than ninety percent of pre COVID capacity.

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Speaker 3: That's not changing. Next year, the aircraft manufacturers are delivering

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Speaker 3: aircraft late. The pattern whitneys will mean five ten percent

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Speaker 3: of the airbus street will be grounded and consolidation. Luftans

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Speaker 3: will buy al Italians, somebody else will buy TAP and

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Speaker 3: there'll be even less capacity on offer.

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Speaker 4: Okay, so this is good news for you because you

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Speaker 4: don't have to really have to try too hard to

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Speaker 4: be the lowest cost aircraft while still raising prices. How

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Speaker 4: much you're going to raise prices next year.

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Speaker 3: We're price passive, load factor active. I think what's happening

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Speaker 3: is how much Iftans or France Kalem will drive up fares.

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Speaker 3: I think by a double digit number next year. It

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Speaker 3: will send even more people in the direction of ryanair.

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Speaker 3: People want to keep flying, Families want to go on holidays.

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Speaker 3: They just don't want to pay Luftansa's outrageous prices. So

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Speaker 3: I think fares that next year, I mean my operating

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Speaker 3: and subs as fares will go by a low double

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Speaker 3: digit percentage again through the summer twenty four to be

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Speaker 3: the third year in a row, third summer in a row,

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Speaker 3: we'll see double digit fare increases in Europe.

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Speaker 4: This is the first year, the first time that you're

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Speaker 4: initiating a dividend. YEP, it's a four hundred pound dividend.

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Speaker 4: It is the first time. Does this mean that you

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Speaker 4: have nothing else to do with that money?

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Speaker 2: Essentially? Yes, you know, I mean SOLF the first time

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Speaker 2: we've done it.

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Speaker 3: We've done special dividence, in share buybacks, We've done about

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Speaker 3: seven billion in share buybacks and special dividends. But you know,

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Speaker 3: we're clearly generating a lot of cash at the moment.

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Speaker 3: We've paid down about two billion in debt. We're down

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Speaker 3: to our last two billion in bond that we'd pay

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Speaker 3: that down over the next three years, and we're generating

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Speaker 3: more cash that we know what to do with.

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Speaker 2: We have specifical requirements.

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Speaker 3: Firstly was to do pay increases for our people who

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Speaker 3: worked with us during COVID. Secondly was to pay down

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Speaker 3: the bonds, and thirdly is to fund aircraft deliveries. But

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Speaker 3: we're running out of the existing order. We take the

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Speaker 3: last aircraft in December twenty twenty four.

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Speaker 2: The first of the.

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Speaker 3: Max tens doesn't rive to January twenty seven, so we're

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Speaker 3: looking into two or three years. So we have effectively

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Speaker 3: very little uses for cash, and I think it's a

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Speaker 3: commitment on our part.

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Speaker 2: We will return to shareholders.

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Speaker 3: We won't squander it the way many other airlines do

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Speaker 3: in m and A or buying hotels or whatever, or

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Speaker 3: as or as Delta would do giving monstrous pay increases

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Speaker 3: to its pilots. Over the next four or five years,

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Speaker 3: we need to keep our cost low, keep our efficiency high,

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Speaker 3: and keep passing on on b to Blair first to

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Speaker 3: our customers.

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Speaker 1: Do you think shareholders then can expect more of the

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Speaker 1: same of the next few years.

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Speaker 3: I think so as long as trading continues. You know,

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Speaker 3: who knows what's going to happen in Ukraine or in

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Speaker 3: the Middle East. But as long as we get a

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Speaker 3: reasonable wind on trading, then I think we will continue

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Speaker 3: very cash generitive and we will return large amounts of

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Speaker 3: cash to shareholders.

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Speaker 1: It's hard to know what is going to happen in Ukrain,

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Speaker 1: in the Middle East. I don't expect you to give

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Speaker 1: us a protection. I do want to understand, though, Are

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Speaker 1: you seeing things slow down in any way, shype or form.

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Speaker 1: When you start to see these things escalate anything, it's

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Speaker 1: a no.

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Speaker 3: I Meanywhile we saw the initial went in Russia invade

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Speaker 3: Ukraine in February twenty twenty two, twenty two or three

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Speaker 3: account remember there's a sudden downturn in all of our

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Speaker 3: traffic into Poland, Romania, those countries. It recovered after two

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Speaker 3: or three weeks. We've had to suspend. We're suspending all flights.

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Speaker 3: We've about thirty flights a day into Tel Aviv. They've

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Speaker 3: been suspended until Christmas. So we do want to see

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Speaker 3: those scenarios resolve themselves. But the ultimate underlying trend across

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Speaker 3: Europe we've locked up everybody for two years in COVID.

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Speaker 3: They all want to go back. Traveling families, want to

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Speaker 3: go on holidays. We've just completed the October midterm break.

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Speaker 3: We were still full and I think what people want

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Speaker 3: is to travel more. But there's only ninety percent of

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Speaker 3: the pre COVID capacity. So in Europe you've constrained capacity

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Speaker 3: enormous demand and that is resulting in very strong prices,

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Speaker 3: not just for Runder but for all of the airlines.

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Speaker 1: And you notice any right down, I hate to describe

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Speaker 1: it's tried down from Bait to Ryan abbat United saying

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Speaker 1: anything like that.

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Speaker 3: Not at the moment, but you know, I think it's

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Speaker 3: inevitable if the next year or two, if consumers are

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Speaker 3: under pressure, I think, you know, you'll see the little

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Speaker 3: and all these are the supermarkets.

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Speaker 2: Ikea will do very well in Ryan, it will do

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Speaker 2: very well.

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Speaker 4: So what about using some of the cash to make

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Speaker 4: the experience nicer for people who might be frustrated with At.

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Speaker 2: Least had been possible to make the experience on Rhinier

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Speaker 2: any nicer.

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Speaker 3: You know, new aircraft on time flights, the fewest cancelations

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Speaker 3: of any airline in Europe, and I don't understand why

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Speaker 3: people pay such ridiculous airforce for a horrendous experience on

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Speaker 3: the fanza who lose your bag, miss your connection?

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Speaker 2: On Rhiner it's efficient, it's cheap, it's on time, and it.

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Speaker 1: Is blow like a four million people Once upon a time,

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Speaker 1: Did you live like.

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Speaker 2: I had to do on a road show a year ago.

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Speaker 3: I had to fly from Frankfurt to Zurich, which is

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Speaker 3: only about one and a half hour flight. They stung

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Speaker 3: me for nine hundred euros one way in economy and

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Speaker 3: I was sitting at the back, in the middle seat,

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Speaker 3: in front of the toilet on an adlevice A three twenty.

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Speaker 2: I mean seven hundred years. I can fly all year

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Speaker 2: round on Ryanier for seven hundred euros.

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Speaker 1: Michael, it's got to say John, Lisa, Michael Larry that

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Speaker 1: the RANA CEO