Source: Reuters Author: Stephen Jewkes 04/15/2009
Subject Concerned: Aircraft Airlines Aviation Fuel
Ryanair Holdings PLC expects to save around EUR500 million (US$661.2 million) in the 2009/2010 fiscal year thanks to lower fuel costs, Deputy Chief Executive Michael Cawley said on Apr. 15.
"Most of the savings will be reinvested in promoting lower fares," Cawley said during a presentation in Milan.
"The savings are the result of a bad fuel hedging strategy last year and a good one this year," Cawley said, echoing earlier admissions by Ryanair executives that they had hedged too near the peak of the oil market in the past.
Cawley reiterated the Irish low-cost airline was targeting 67 million passengers this year, up from just over 58 million last year.
"Our passenger target will be achieved organically without acquiring other airlines. We have no requirement to acquire," he said.
Cawley said there was room to possibly upgrade the 67 million passenger target later.
He said talks with Boeing Co and Airbus about new plane orders were ongoing but nothing concrete had been decided.
"We are covered for 3-4 years by current orders. Our passenger growth indicates we'll need 100-300 aircraft going forward," he said.
Cawley reiterated the company expected a "substantial" profit for the 2009/2010 year, which starts in April, but he did not give any precise guidance.