SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
For the month of September, 2008
RYANAIR HOLDINGS PLC
(Translation of registrant's name into English)
c/o Ryanair Ltd Corporate Head Office
Dublin Airport
County Dublin Ireland
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F.
Form 20-F..X.. Form 40-F.....
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange
Act of 1934.
Yes ..... No ..X..
If "Yes" is marked, indicate below the file number assigned to the registrant
in connection with Rule 12g3-2(b): 82- ________
RYANAIR’S GUIDANCE LARGELY UNCHANGED AT AGM
5 Million €5 Seats on Sale for October/November
Ryanair, Europe’s largest low fares airline today (Thursday, 18th
September 2008) held its AGM in Dublin to update shareholders on trading, the difficult
economic environment and recent airline industry developments in Europe.
Commenting on its outlook for the current year to 31st March 2009, Ryanair reiterated that
it expected to carry just over 58 million passengers. The Company did not significantly
alter its full year guidance which has improved from the previous “breakeven to minus
€60m” to a current “breakeven” based on Q.4 oil remaining at $100
per barrel (down from $130 p. bl) this Winter. Ryanair welcomed the recent fall in oil
prices. It has hedged most of its Q.3 requirements at $124 per barrel, but remains unhedged
for Q.4. Whilst Ryanair expects to pay less for oil in Q.4, these savings may well be eaten
up by lower yields this Winter, as the UK, Irish and European economies go into recession
and consumer confidence plummets.
Ryanair will respond to these negative trends by lowering fares this Winter, and underlined
its intent by releasing 5 million seats this morning for travel in October, and the first
two weeks of November for just €5 one way (incl. taxes and charges). Ryanair remains
the only European airline to guarantee the lowest fares on every route and no fuel
surcharges as well.
Ryanair expects more airline bankruptcies in the coming weeks following the recent closures
of Zoom, Futura, XL Airways and the bankruptcy of Alitalia. Ryanair believes that many
unviable loss making European airlines will cease trading this Winter because of
unsustainable losses and insufficient cash reserves. Ryanair recommends that any passengers
making bookings this Winter, should book with Ryanair, which has over €2 billion in
cash. Ryanair called on Europe’s high fare airlines including BA, Air France,
Lufthansa and Aer Lingus to reduce their unjustified fuel surcharges to reflect the recent
38% drop in oil prices.
Speaking at today’s AGM, Ryanair’s CEO, Michael O’Leary said:
“While the recent fall
in oil prices is welcome, it won’t have much impact on our full year results because
we have already hedged Q.3 at $124 per barrel and any Q.4 fuel savings may be absorbed by
lower fares and yields as we stimulate growth in a recession this Winter. We believe there
will be further airline bankruptcies in Europe over the coming weeks, as more of
Europe’s non-viable, loss making airlines run out of cash or their credit facilities
are withdrawn.
“The extraordinary pace of European airline consolidation will also continue. There
is no doubt that most of Europe’s flag carrier airlines will merge into three large
high fare groupings led by BA, Air France and Lufthansa this Winter. By contrast Ryanair
will continue to compete with (and beat) these mega carriers by offering lower fares,
consumer choice and better punctuality. We expect that the European Commission will
rubber-stamp approval of these mergers, which will help Ryanair’s appeal against the
EU’s prohibition of our 2006 much smaller merger with Aer Lingus. Aer Lingus (which
is again losing money) is far too small to survive as an independent regional airline, and
we believe its future can best be secured as part of one strong Irish airline group (where
it would continue to be separately branded and managed), rather than being a tiny
subsidiary of a high fare airline grouping controlled from London, Paris or Frankfurt.
“We regret Aer Lingus’s continuing failure to take Ryanair’s advice to
lower its fares, fuel surcharges or costs. Having wasted over €24m of shareholders
funds rejecting an offer of €2.80 per share, Aer Lingus is now forecasting substantial
losses both in 2008 and 2009. Its Belfast base with an average load factor of less than 50%
has been a financial failure. We don’t believe that a Board which has almost trebled
its Directors fees from €17,500 p.a. to €45,000 p.a. can credibly deliver the
“fundamental changes in the operating cost base” which are so badly needed.
Perhaps they should start by cutting these fat cat fees? Aer Lingus’s future and the
security of employment of its people depends on lowering air fares and scrapping
unjustified fuel surcharges, whereas in the last two years Aer Lingus has increased
both.
“Ryanair supports the UK Competition Commission’s recent report which called
for the break up of the BAA airport monopoly which has damaged competition and consumer
interests in the UK. We call on the Irish Government to break up the equally damaging DAA
airport monopoly which continues to develop facilities which users don’t want, and
continues to impose monopoly prices increases, way above the rate of inflation, while
Ireland’s useless Aviation Regulator stands idly by. We call again for the dismissal
of Ireland’s Aviation Regulator who has failed to protect the interests of users at
Dublin Airport, who did nothing while Dublin’s ATC system collapsed for 5 weeks
earlier this Summer, and who has presided over a growing number of bankruptcies of tour
operator and airlines which his office licenced as financially fit to operate.
Ireland’s Aviation Regulator has been a dismal failure, and this useless quango
should be closed immediately.
“Ryanair’s campaign against illegal screen-scraper/ticket-tout websites (who
are unlawfully accessing Ryanair.com’s website and are mis-selling Ryanair’s
fares to consumers with hidden 200% and 300% mark-ups) continues. We note the failure of
the European Commission, or the consumer protection agencies of Ireland, the UK or Europe
to take any action to prevent consumers being ripped off with these hidden mark-ups.
Ryanair is continuing, to secure injunctions in Ireland, the UK, Spain and Germany against
these mis-selling ticket-touts and cancel screen-scraper bookings which have been made in
breach of Ryanair’s terms and conditions.
“Ryanair continues to grow strongly, with last month’s traffic up 19% on
August 2007. We expect that our continuous stream of seat sales and price promotions which
includes this morning’s release of 5 million, €5
seats for travel in October and the first two weeks of November, will continue to
stimulate air travel, to take market share from competitors and offer Europe’s
consumers a real choice of low fares and on-time flights, when increasingly their only
alternative is high fare, fuel surcharging, regularly delayed flag carrier services. While
Ryanair’s refusal to impose fuel surcharges will mean that our profitability declines
steeply in the current fiscal year, our cost reduction programme and significantly lower
oil prices (if they persist at under $100 p.bl) should lead to a return to substantial
profitability in the next fiscal year (ended March 2010)”.
Ends. Thursday, 18th September 2008
For
reference:
Daniel De
Carvalho
Pauline McAlester
Ryanair
Ltd
Murray Consultants
Tel:
+353-1-8121212
Tel. +353-1-4980300
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has
duly caused this report to be signed on its behalf by the undersigned, hereunto duly
authorized.
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RYANAIR HOLDINGS PLC |
Date: 18 September, 2008
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By:___/s/ James Callaghan____ |
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James Callaghan |
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Company Secretary & Finance Director |