Ryanair firms orders for 32 737s, raises profit outlook for current year

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Ryanair firms orders for 32 737s, raises profit outlook for current year
Monday October 2, 2006=20
Ryanair on Friday raised its full-year net profit guidance to approximately=
 =E2=82=AC335 million ($426 million) and said it firmed options on 32 737-8=
00s valued at $2.25 billion, bringing its total number of firm orders for 7=
37-800s to 281.=20
Deliveries are scheduled between September 2008 and June 2009. Ryanair said=
 the price it is paying for the jets will give it "the lowest per seat oper=
ating cost of any European airline."
It also forecast an 11% rise in earnings for the fiscal year to next March =
31, up from previous guidance for a 5%-10% increase. It cited better-than-e=
xpected passenger growth, a more moderate yield decline than anticipated an=
d a lower-than-projected cost of hedging its fuel bill. It now forecasts a =
passenger growth of 22% to 42.5 million for the full year, slightly higher =
than the previous 20%.=20
"Our outlook for this winter remains cautious. This winter we will launch 1=
06 new routes and two new bases (Marseille and Bremen). We have also hedged=
 our fuel requirements for Q4 at an average cost of $73 per barrel, lower t=
han we had originally anticipated," Chief Executive Michael O'Leary said.=
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"We anticipate that our loss-making competitors will continue to dump fares=
," O'Leary added, and second-half load factors are estimated to fall 2 poin=
ts versus a year ago, "which will give improved yield stability in the wint=
er period." This will result in the decline in forecast yields being closer=
 to 5%, at the lower end of the 5%-10% range in earlier guidance.
by Cathy Buyck
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