Ryanair 2009 Annual Report Download - page 10
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10
The future
Ryanair is well positioned in the current recession to grow. We have a strong balance sheet with over
€2.5bn in cash. We have low cost aircraft orders and the necessary resources in place to grow the fleet to over
300 aircraft by 2012. This should see our annual traffic to grow to over 90 million passengers by 2012/13. By
then our ever lower fares will save our passengers over €9bn annually, compared to the high fares and fuel
surcharges being levied by Europe’s flag carrier airlines.
There can be little doubt that the current recession will cause Europe’s airline losses to rise, leading to
more closures and consolidation. Europe is inexorably moving towards four major airlines, led by three high
fare, fuel surcharging flag carriers (Air France, BA and Lufthansa) and one very large low fare airline Ryanair. I
believe that, all of Europe’s second and third tier carriers will in time become subsidiaries or feeders of one of
these big three high fare airline groups. We regret that the shareholders rejected our €1.40 per share offer for
Aer Lingus in January, since we believed that Ryanair was the logical and strongest airline partner to secure Aer
Lingus’ slots, brand and its long-term future for Ireland. Without Ryanair as a strong partner, sadly Aer Lingus
remains a small, peripheral, loss making regional airline, which has recently announced substantial losses in
2008, and is predicting increased losses in 2009. Their share price has fallen to less than €0.50 on the 1st of July
last, a loss of some 80% of its shareholder value from its €3.25 share price high in March 2007.
Over the coming 12 months Ryanair will benefit from substantially lower oil prices. We are determined to
lower non fuel unit costs by a minimum of 5% and we remain on track to achieve this target. We intend to use
these lower costs, to significantly lower air fares by between 15% to 20%, and we believe that these lower fares
will enable Ryanair to grow traffic profitably by at least 15% to 67 million passengers. This combination of
lower fares, lower costs, increased profitability and expansion demonstrates that Ryanair will continue to grow
our business profitably for the benefit of our passengers, our people and our shareholders.
Michael O’Leary
Chief Executive