Speaker 1: Bloomberg Audio Studios, podcasts, radio news, Join us.
Speaker 2: Now, legend of the industry, the ran Eboss Michael Leary, Michael,
Speaker 2: good morning and see it.
Speaker 3: Come with your friends. Wow, you're alone part of the industry.
Speaker 3: How would you describe yourself? Old fat, old fart? I think, yeah,
Speaker 3: I think it's fat. Seeing dinosaur.
Speaker 2: You've seen it, O, sat Have you seen something like
Speaker 2: this before? The situation from five.
Speaker 4: Years ago, the Russians invaded Ukraine twenty years ago, the
Speaker 4: second goal for the first golf for War nine to eleven. Yeah,
Speaker 4: this happens regularly within our industry. That's why in Ryan
Speaker 4: here we typically had eighty percent of our fuel. We're
Speaker 4: eighty percent hedged out to March twenty seven, sixty seven
Speaker 4: books of Barrow. We're in great shape, apart from the
Speaker 4: find our share price is tanked in the last two
Speaker 4: weeks because they.
Speaker 3: Were oh they're in their line. No got the hell.
Speaker 1: We're just reported record full your results, two hundred eight
Speaker 1: million passengers, two point two six billion euros profit after attacks,
Speaker 1: spitting off cash to shareholders, share.
Speaker 3: Buybacks and with a bit of a look if this continues.
Speaker 1: Although you know, we can all have a debate how
Speaker 1: long we think this will continue in the Middle East
Speaker 1: over the straight and foremost some of the flaky competitors
Speaker 1: in Europe will get taken out in carrier baskets by
Speaker 1: about September October because they're not edged on oil.
Speaker 3: And they're borrowed up to the Rye balls in net debt.
Speaker 2: Are you runny to buy?
Speaker 3: We are certainly rated by cheap aircraft.
Speaker 1: If you've got any cheap aircraft, I'm really excited. We
Speaker 1: are about to get the first ten of our Max
Speaker 1: ten aircraft fifth first fifteen of our Max ten aircraft
Speaker 1: from Boeing in the spring of twenty twenty seven. Twenty
Speaker 1: percent more seats per plane, burns twenty percent less oil.
Speaker 1: Like the technological efficiency of the new engines is remarkable,
Speaker 1: and we will take we're ordered. We've ordered three hundred
Speaker 1: of those from Boeing. We priced them during COVID, so
Speaker 1: we've basically stolen them and they will transform even our
Speaker 1: operating economics in Europe for the next decade.
Speaker 5: So are you interested though, in buying a carrier in
Speaker 5: its entirety aside from just their aircraft.
Speaker 1: There is nothing in Europe you would want to buy
Speaker 1: a crap You know it will go bust, you know,
Speaker 1: in the not too distant future. Europe is inexorably, you know,
Speaker 1: moving the same direction the US did twenty years ago.
Speaker 1: Three large connecting carriers BA Lufthansat Air France KLM. They
Speaker 1: are making out like bandits at the moment because all
Speaker 1: the long haul connecting traffic has switched off the golf
Speaker 1: carriers and is going on those legacy guys shorthold. Ryanair
Speaker 1: will continue to dominate the short hold space in Europe
Speaker 1: because we have much lower fares and much lower costs.
Speaker 1: We're the only really low fare, low cost carry in Europe.
Speaker 1: There's a few other low fare not so low cost
Speaker 1: carriers in Europe, but they're all good to They're all
Speaker 1: going to go the same way as spiriting from Tire
Speaker 1: in the States.
Speaker 3: That's what I wanted to ask.
Speaker 5: It seems like the model in the US is really struggling.
Speaker 5: We had Spirrigo bankrupt. There's talk of mass consolidation among
Speaker 5: some of the other low cost carriers and this idea
Speaker 5: that every consumer is expecting higher quality and that that
Speaker 5: is what's generating a lot of the revenues. How does
Speaker 5: Ryanair succeed in that environment in that demand backdrop.
Speaker 3: I mean the.
Speaker 1: Problem for the last twenty years of this States is
Speaker 1: there's really been no low cost carriers anymore. I mean
Speaker 1: we copied out this formula reguly from Southwest back in
Speaker 1: the late nineteen eighties when Herb Keller, he was in
Speaker 1: each pomp, you know, Southwest of charging ten dollars fares.
Speaker 1: Now Southwest average fair last year was one hundred and
Speaker 1: forty bucks.
Speaker 3: It's not a low fair carrier anymore.
Speaker 1: If you had a real low fair carrier here in
Speaker 1: the States, as Ryan Air is in the US, our
Speaker 1: average fair last year was forty bucks, there would still
Speaker 1: be very strong demand because the main airlines here, I
Speaker 1: mean they've had control of the amount of supplying the
Speaker 1: market for the last twenty.
Speaker 3: Years, and they've been pricing up.
Speaker 1: The cost of air travel in the States is incredibly high,
Speaker 1: particularly given that you don't pay for ATC.
Speaker 3: Could you expand into the US, No, absolutely not.
Speaker 1: We're too busy expanding in Europe and then those countries
Speaker 1: around Europe.
Speaker 3: There is so much growth available to us in Europe.
Speaker 3: You looked at it.
Speaker 1: Last year we grew four percent, were the biggest airline
Speaker 1: in Europe. We grew to four percent to two hundred
Speaker 1: eight million pastors. This year had grown another four percent
Speaker 1: two hundred and sixteen million pastors. And in the next
Speaker 1: decade with these Max ten aircraft, I'm going to go
Speaker 1: to three hundred million passengers all in Europe. I mean,
Speaker 1: Europe is the best playground for low cost airund that
Speaker 1: you could possibly imagine a couple of big, useless legacy
Speaker 1: airlines charging more, you know, charging annual salaries for their
Speaker 1: long haul travel, but nobody able to do the low
Speaker 1: cost stuff. We do the low cost stuff. Well, we're
Speaker 1: cheap irish guys, you know, and so we do it
Speaker 1: well with the with a with an order for three
Speaker 1: hundred really fantastic aircraft.
Speaker 2: Used to be sig Maine back in the night, which
Speaker 2: used to be sim Maine, it was Brudshald, remember that.
Speaker 3: Well, we were never brutal, we were cheap and less.
Speaker 3: We were cheap and mean.
Speaker 1: Now we're just cheap and cheerful new aircraft on time flights,
Speaker 1: huge coman last year, our customer were record customer service metrics.
Speaker 1: Customer service satisfaction were done for eighty sixty to eighty
Speaker 1: nine percent. I never thought I'd see the day when
Speaker 1: I got more than fifty percent customer satisfaction.
Speaker 3: But he who knew.
Speaker 5: Can I ask you, where are Europeans traveling to this
Speaker 5: summer for vacation?
Speaker 3: Do they want to come to America anymore? No?
Speaker 1: No, I mean that's not yes, they do, but the
Speaker 1: problem is that the cost of longhol travels got very expensive,
Speaker 1: so you know, there isn't much competition across the Atlantic
Speaker 1: between the European legacies and the US majors. The Gulf
Speaker 1: carriers were the real disruptors for the last twenty years,
Speaker 1: and they have you know, their capacity has been halved
Speaker 1: in recent months. So a huge amount of Europeans will
Speaker 1: holiday at home in Europe this year, in Portugal and
Speaker 1: Spain and Italy and Greece. A lot of Americans are
Speaker 1: still coming to Europe for the quality, for the sunshine,
Speaker 1: the culture and the alcohol, and along with they continue
Speaker 1: to travel. But I think there's a real seed change
Speaker 1: this year of people who would historically have gone to
Speaker 1: the Middle East or using the Middle East carriers to
Speaker 1: connect to long haul probably going to stay at home
Speaker 1: in Europe this summer.
Speaker 3: When we're Europe run out.
Speaker 1: Of fuel, it won't There was a real concern. I
Speaker 1: think back in April, you know, there was real worries
Speaker 1: over supply jet supply. The jet supply has now. We
Speaker 1: met with all of our fuel suppliers in Paris last week.
Speaker 1: There's no issues over jet fuel supply right now through
Speaker 1: to the end of September.
Speaker 3: One issue in the UK. Q eight, which is the
Speaker 3: subsidiary of the state of Q eight, have.
Speaker 1: About thirty percent market share some of the airports in
Speaker 1: the UK even they now we are resourcing that supply.
Speaker 1: Most of Europe' Jeta one supply comes from West Africa,
Speaker 1: the America is Norway, and the lifting of Russian sanctions
Speaker 1: has also eased the supply Jet one into Eastern European countries.
Speaker 5: So you don't seem concerned with what's going on right
Speaker 5: now with the conflict in Iran.
Speaker 1: I'm very concerned about the price of oil, but I
Speaker 1: don't believe the conflict in Iran will have any disruption
Speaker 1: on European jet supplies.
Speaker 3: I do.
Speaker 1: The question for US is how long will the straight
Speaker 1: sufform moves remain closed.
Speaker 3: I mean, you know, we gave guidance this morning.
Speaker 1: If it remains closed till March twenty twenty seven, our
Speaker 1: unit because of our on head twenty percent, our unit
Speaker 1: costs might rise, you know, mid single diges this year.
Speaker 3: Nobody believes what do you have that too?
Speaker 2: You can you just explain your current edge and strategy
Speaker 2: where you've.
Speaker 3: Had that fuel. We have bought eighty percent of our
Speaker 3: jet fuel requirements.
Speaker 1: John out to March twenty twenty seven at sixty seven
Speaker 1: dollars a barrow. So we're sitting you know, we're in
Speaker 1: great je position, great position. But no nobody really believes
Speaker 1: that the Straights Forum moves is going to stay closed
Speaker 1: until March of next year. It's just we don't know
Speaker 1: when they're going to reopen. Iran is going to starve
Speaker 1: if they don't get it ready. The Straightsform moves reopened
Speaker 1: to the next couple of months. The midterm election season
Speaker 1: kicks off in Memorial Day at the end of May.
Speaker 1: You know, Trump is going to lose the House and
Speaker 1: the Senate if he doesn't get this result and reopened.
Speaker 3: But the timing is none of us know when the
Speaker 3: timing will be. But you know, I hope it's sooner
Speaker 3: rather than later.
Speaker 1: But if it stays, if it becomes later, say it's
Speaker 1: stay out for something.
Speaker 3: Happens to none of us.
Speaker 1: The expect the straight stay closed in September, October, November.
Speaker 1: Then we are looking at our unit costs will be
Speaker 1: up about five percent. But you'll be looking at kind
Speaker 1: of airlines failing all over Europe on the way who's well,
Speaker 1: I can't really name them, but you know some of
Speaker 1: our low fare but not so low cost COMPETITIVESZ I
Speaker 1: don't think Easy Yet will fail. I mean, I don't
Speaker 1: think they make any money this year with him could
Speaker 1: well be a candidate for failure.
Speaker 3: Air Baltic, which was recently.
Speaker 1: Built out by the Latvian government, gave it a thirty
Speaker 1: million loan to get them from June through to August,
Speaker 1: but they have to repay the loan in August. I mean,
Speaker 1: good luck with the lasteans trying to get that repaid
Speaker 1: at the end of August.
Speaker 3: So I think there will be casualties, But again a lot.
Speaker 1: Depends on how I mean, you know more about this
Speaker 1: than how long the streets film remains remain closed. When
Speaker 1: can Trump declear a victory and you know, kick off
Speaker 1: the midterms, And I suspect it's probably going to be
Speaker 1: the end of May, maybe early June, but but I mean,
Speaker 1: if I was any if if my predictions were any good,
Speaker 1: I wouldn't be working in the airline business, in a
Speaker 1: proper functioning business like Bluemberg.
Speaker 3: I'll get it right with falk Star salaries.
Speaker 2: I'll get it right this time. Michael Larry Out start
Speaker 2: at the end, administry Buster, Ryan and Michael going to
Speaker 2: see about it.
Speaker 3: Thanks to se