Ryanair Holdings plc

Hello everyone and welcome to the Ryanair Holdings PLC FY25 earnings release. My name is Nadia and I'll be coordinating the call today. If you would like to ask a question, you may do so by pressing star, followed by one on your telephone keypad. I will now hand over to your host, Michael O'Leary, Group CEO of Ryanair Holdings Begin. Michael, please go ahead when you're ready.

Good morning ladies and gentlemen, welcome to the Ryanair full year results conference call. We have all of the management on various calls and I'll try and distribute some of the questions around as best we can. I'll take it briefly, you'll see this morning we released the numbers on Ryanair.com website. We reported a full year profit of after tax of 1.6 billion compared to a prior year profit after tax of 1.92 billion. The reason for the decline in profitability was due to a 7% decline in airfares last year, a number I think we're particularly proud of. That fair decline drove traffic growth of 9% to a new record of 200 million passengers despite repeated Boeing delivery delays last summer. While average fares were down 7%, Unis ancillary revenues were up 1%, total ancillary revenues were up 10% with 9% traffic growth. I think the most stunning number coming out of this morning's numbers is unit cost per passenger were flat last year, which means we've meaningfully again widened the cost gap between us and our competitor EU Airlines. And if anything that strengthens our ability to grow over the next decade. Despite Boeing delivery delays we took delivery of 181 game changers at the end of April. We have 618 aircraft in the fleet for this summer. We are constrained in terms of growth because of those delivery delays. There are still 29 aircraft we'll take this winter for summer of 2026. That means we can only grow by 3% this year to about 206 million passengers. We used the profit warning last year as an opportunity to increase the share buyback. So we bought back 7% of our shares last year and have cancelled them in their entirety. So I think overall a reasonably good year in a very tough pricing environment for Ryanair. We move into this year then with the kind of, you know, unusually for us with weak prior year comps, particularly in Q1. And we're already seeing that now. So we have a full Easter in this year's April compared to only half of Easter in last year. And we've also fixed the OTA boycott last year. We now have almost all of the significant OTAs approved and are booking strongly into this summer, which is why we look into this summer forward bookings are running close to 1% ahead of where they were at this time last year. And we're pricing up certainly very strongly in Q1. Pricing in Q1 is up about 14, 15%. Q2 is a little bit early to say yes. We have only about 30% of the bookings in the system for Q2, but pricing looks like it's up 4 or 5%. We're not going to get quite back all the 7% decline we had last year Q2, but it looks like we'll get back a significant proportion if not all of us. Touching on the balance sheet, gross cash is a bit stronger than we had expected again, primarily due to Boeing delivery delays. At year end, gross cash was 4 billion. Net cash was about 1.3 billion. And that's why we've brought forward another share buyback this year. We're ahead on cash, long on cash because of the Boeing delivery delays. And because we have that spare cash, we think it's time to return it to shareholders. The big challenge for us in the next year in terms of cash though is we have 2 billion of maturing bonds, 850 million in September, 1.2 billion in May of 2026. We plan to pay down all of those bonds out of our internal cash balances. And that would mean Ryanair will this time next year be entirely or almost entirely debt free and sitting on a fleet of 650 aircraft totally unencumbered and debt free. And we would plan to continue to return excess cash to shareholders, but we won't have a lot of excess cash for the next year or two as we pay down debt and begin to fund the step up in the Max 10 deliveries. The relationship with Boeing, our Boeing's performance has continued to materially improve in the last 12 months. We think the new management team led by Kelly Ortenberg and Stephanie Pope in Seattle are doing a terrific job. The aircraft, the fuselage are coming out of Wichita in a timely manner with very little, no defects being carried forward. And that's increasing Boeing's ability to step up its manufacturing. I'm heartened by the fact that in April Boeing delivered 45 aircraft compared to just 24 aircraft in April 2024. And we expect that will continue. Boeing now are reasonably confident that the Max 10s will be certified later this year, the Max 7s first, the Max 10s before the end of the calendar year. And that would put us in good shape, we think, to take delivery of our first 15 Maxes in the spring of 2027. We expect the European short haul capacity will remain constrained out to 2030 as many of Europe's Airbus operators are still working through their patent Whitney engine repairs. The two big manufacturers, Boeing and Airbus, are well behind on their aircraft deliveries. And EU consolidation continues. I think the consolidation is also driving that benign pricing environment. Certainly, as Lopunzitets control of Alitalia in Italy, we're seeing strong upward pricing movements in Alitalia. We would expect the same to take place in Portugal when one of the majors buys TAP. And as for the largest airline in Italy and the largest airline in Portugal, we would expect to continue to benefit from that trend. One of the more notable regional developments has been on the ownership and control side. Following an extensive consultation period with regulators and investors, the board removed the ownership restrictions in March. It means EU non-EU shareholders are free to buy the ADRs or the Orders Without Restrictions. We will continue to maintain the voting restrictions. Non-EU shareholders can't vote at the AGMs. Recognition of that development, the MSCI index recently confirmed Reiner's inclusion in the MSCI World Index at the end of May. And we would expect to be included in one or two other of the bigger world indexes before the end of the year. I want to touch briefly on the fact that Howard Miller has chosen not to seek reelection at the next AGM. Howard has been CFO from 1992 to 2014, a period of about some 22 years. And then has been in NEG for the last nine years. Has paid an enormous contribution to the success of Reiner. In fact, without himself and Michael Corley together when we floated in 1997, we would not be where we are today. So I want to recognize that and thank Howard for his effort. Turning briefly to the outlook, as we tried to communicate this morning, we expect the FY traffic growth is constrained. We expect to grow by maybe just 3% this year to 206 million passengers because of those 29 Boeing delivery delays. We've agreed with Boeing we'll take those deliveries at the back end of this calendar year, so through September, October, November. So we're guaranteed we'll have all of the 210 game changers well in advance of summer 2026. Nevertheless, growth issue will be constrained to 206 million and then we'll pick it up again or recover to 215 million in FY27. The following year of flat unit costs, we expect very modest unit cost inflation in FY26. As the delivery of more game changers, strong jet fuel hedging and cost control across the group helps to offset most of what are very egregious increased route and ATC charges and higher environmental costs. The unwinding of the ETS and the introduction of the SAF blend mandates. However, and I know it will come up in the call, we think that unit costs will be modest, maybe up 1% or 2% where we are this year. To date for summer 2025, demand is strong. Peak fares are trending modestly ahead of the prior year. We think we're up -6% in Q2 and the question is what happens for the remainder of the year. Q1 fares are on track to finish at mid-high teen percent ahead of Q1 FY2025. Some of that is the weak prior year comp and the fact that only half of Easter was in last year's Q1. Both halves of Easter are in this year's Q1. We expect Q2 pricing to recover some, but not all of the 7% decline we experienced in prior year Q2. As I said, we have only about -35% of Q2 bookings in the system. The final H1 outcome is therefore heavily dependent on close in bookings and the peak summer yields. As is normal at this time of the year, we have zero H2 visibility and therefore we don't think we can give out full year guidance. Other than to say we cautiously expect to recover most, but not all of last year's 7% fair decline as we move through the year. It could be better than that, it could be worse than that, it depends on what happens in the geopolitical environment as we move through the year. But that should lead to a reasonable net profit recovery or growth in FY26. Two years ago we recorded a profit of 1.93 billion. Last year on the back of 7% lower fares that fell to 1.6 billion. I think you'll see a reasonably strong recovery in that through for the remainder of this year, but we're not willing to give guidance at this stage. That's because the remainder of Q1 and Q2 are heavily dependent on close in pricing. The one thing I would draw your attention to is the opportunity in terms of lower cost oil going forward. We had already hedged about 85% of our FY26 fuel at $76 a barrel. Last year we were hedged at $79 a barrel, so we secured a 4% saving. Following the Trump tariff announcement on Independence Day, we saw a material fall in oil prices, which we will pick up that at the moment. Friday Brent was at $62 a barrel, Chet was $67 a barrel. We will pick up meaningful savings on the 15% unhedge for the remainder of this year. We did jump on the oil price weakness following the tariff announcement to hedge 40% of next summer's, in other words, H1 FY27. We've hedged 40% of next summer's oil at $66 a barrel, a 13% saving compared to this year. On a cost base of $5 billion is our annual oil price. We think there's a real possibility of making material oil price savings, not just for us, but for the rest of the European industry. I think in advance of President Trump's trip to the Middle East last week, we thought one of the most significant developments was the fact that the OPEC Plus producers abandoned their production cuts three weeks before he visited the Middle East. I think we expect the US administration will turn its attention towards increasing supply and reducing oil prices in advance of the midterms next year. There may be a short-term or medium-term gain for airlines in general, but Ryanair in particular, as we move forward for the remainder of FY26, where we have weaker FY25 comps. That's all I want to say at this stage. Neil, I'll hand it over to you in terms of anything you want to draw attention to in the MD&A and then we'll open it up to Q&A.

Thanks, Michael. I'll just re-emphasize maybe a couple of the points that you made. Just focusing on costs, as previously guided, we were very pleased to come in flat on a unit cost base as a result of our strong hedging, which helped offset productivity pay increases that we had and other Boeing delay related costs that came through the business. As Michael just said, we continue to be well hedged into the current financial year at about $760 a metric tonne and then a meaningful dip on our hedging rate of $660 a metric tonne out to FY27, where we're over 40% hedged in the all-important first half and about 35% in the second half of the year, so that that blend is about 36% on the year. Liquidity was very strong. It helped a little bit by the timing of Boeing delivery delays, but we came in with just under $4 billion gross cash, $1.3 billion net cash after $1.6 billion CAPEX, and $1.9 billion shareholder returns, including the $1.5 billion buyback. We will be launching the $750 million buyback in the open period, which starts tomorrow, so later on this week that $750 million buyback will formally launch. Just on the liquidity side as well, I would point out that we increased our revolving credit facility back in March. We upsized it from $750 million to $1.1 billion, most of it undrawn at this point in time, so it gives us lots of flexibility and additional liquidity should the need arise. And then finally, I would point to our rejoining the MSCI at the back end of May. I think this is an important development on the back of the ownership and control review, and Michael, I don't really have much more to add.

Okay, Eddie, you want to add anything or just a commercial, general training point of view for the summer? Just

from a general, you know, demand is solid, and we've taken the opportunity with restricted capacity increases, which we'll be catching up later on in the year with Boeing with further extracting cost increases at some of the major hubs that we fly into. So we're much more picky about where we allocate that capacity, and that's going to continue into next summer, where we pretty much have all of those aircraft allocated in their own mind, but we're still a small number still to be allocated. So that's that is.

Good. Okay, we'll open up for Q&A. I'll try and move some of the questions around. We have all the wider management team on the line, so moderate if you'd open it up, please. And we're going to switch over to two questions and we try and get to as many as we can. Neil has to leave at 11 o'clock our time, but we will try and get it wrapped up by 11, 11.15.

Thank you. If you would like to ask a question, please press star, fill it by one on a telephone keypad now. If you change your mind, please press star, fill it by two. When my parents ask your question, please ensure your line is unmuted locally. We ask you please limit yourself to two questions. Our first question goes to Jamie Robotham of Deutsche Bank. Jamie, please go ahead.

Morning, gents. Ticket revs per pack down only 5% in March without Easter, then up potentially as you said 14, 15% in June with Easter. The net of those two is very strong, even considering some tailwind from the resolution of the OTA issues. So have you been surprised by that strength and maybe by geography? Where do you see it mostly coming from? Then one for Neil. Presumably too early to ask for detailed non-fuel cost guidance, but can I ask about CAPEX? You mentioned in the deck taking the first 15 max tens in spring 27. Would you be willing to give a steer on the phasing of CAPEX over the next three years, please, through to fiscal 28? Thanks.

Okay, I'll take the first half of that. I mean, I had to contribute as well. We're not that surprised the strength of Q1, but again, I would caution it is more driven by week prior comps. We have half of Easter was in March last year. We have both halves of Easter this year in March. We have strong growth because last year we were growing capacity by 9%. We added 17 million passengers last year. This year we're only growing capacity by 3%. So I think you have a combination of week prior comps, very strong Easter because you have two halves of Easter in April. And then we, the largest airline in Europe, are only growing our capacity, seeking by this year by 6 million passengers instead of 17 million passengers last year. And then you're creating a more benign pricing environment across Europe generally. And we would be the beneficiaries of that. I think Q2 is probably a more accurate reflection of the underlying trend. We think at this point in time, Q2, and we did have a very strong Q2 last year. We think Q2 would price up 4 or 5% at the moment. That could get to 7, 8 if the Q2 pricing remains strong. It could weaken if there's some unforeseen events, you know, like terrorist events in Europe, but who knows? And geographically, because we're in constrained capacity, we've been trying to allocate more capacity to those countries and regions who are abolishing taxes, regional Italy, Hungary, Sweden, and those airports who are still incentivizing growth. But I'll ask Eddie maybe to add a couple of words to that. And then Neil, you might comment on the CapEx.

Yeah, like I would echo, you've largely touched off all of the points there. I mean, I wouldn't run away with what has happened as we close out Q1. It really is down to an exceptionally strong Easter. But they were weak prior year comparables as well. We've about 30% of the bookings in for peak. And we are running like just ever so slightly ahead on volumes. But again, wouldn't run away with it in Q1 at all or translate that into Q2. No real things on the geographies. I mean, like, you know, it's a small part of our network. The only sort of call-out job is that there are not a call-out even is that there is less huge amounts of capacity from all operators in areas post-COVID. Yeah,

the only other one we do there is, you know, and the one market that has constrained itself has been Dublin, obviously, where, you know, the new government, which has now been in place for five months, but a seat, a 20 seat majority still hasn't passed any legislation to scrap the Dublin airport cap. We have successfully got a legal injunction against it, but it has held up growth that we would otherwise have deployed in Dublin. We're growing reasonably strongly in Cork and Shannon, but they're very small markets. Dublin is being constrained by government inaction. And six, six months, five months into the lifetime of this new government, it's time for them to start passing legislation before they all bugger off on summer holidays in the next couple of weeks. Neil Capex.

Yeah, Jamie, good morning. You're right. I'm not going to give you an awful lot of color over and above what we've already put out there. So we're talking about about two billion, maybe a bit higher this year, depending on the timing of aircraft, engine shops and other spares and parts. The PDPs on the Max 10 are going to ramp up relatively slowly over the next couple of years. So you'll see a drop down in Capex into FY 27, somewhere below the two billion. And then it'll start to creep up again into FY 28. So it'll probably be a mid two to two point five to three territory that year. But as I said, it ramps up relatively slowly this year and next. And with only a small number of aircraft 15 coming in ahead of summer 2027, there won't be too many delivery payments on the 10 at that point in time as well.

Thanks, guys. Thanks, Neil. Next question,

please. The next question goes to Stephen Fairlong of Davey. Stephen, please go ahead.

Stephen, hi. Hi, Michael. Can I ask you one question on the EU and just get a few questions on that and regulate and post-Draghi and stuff. You've seen any signs that they're less inclined to regulate. I'm thinking of the challenges with the staff and delays in deliveries just makes the whole net zero thing a challenge for the industry. And then also the noise they make about about retaliatory tariffs with with Boeing. And then the other thing maybe for for Neil, just talk again about the rationale for a paying back the bonds and B for the up sizing of the of the facility, the revolver. That'd be great. Thanks.

OK, thanks, Stephen. No, I'm sad to say we've seen very little action from the EU. The Draghi report, I think, was a very positive development last year, but there's been no action on it. If you want to call out EU inaction on regulatory is the failure to take any action on ATC reform. We give them two very simple but basic ATC reforms, one, protect overflights during national strikes, no action whatsoever, ringing of hands. They owe it to national competence. It isn't a national competence. If the euro it's a single market and you can't close down the skies over a single market just because the French air traffic controllers want to go on strike. They're entirely free to go on strike, but there is no impediment to continuing to overfly France during a national strike. The Italians, the Italians, the Greeks and the Spanish protect overflights during national strikes. And the French should be required to do too. Likewise, more locally, we have this lunatic Spanish minister running around trying to force all airlines to take unlimited bags on board free of charge. It's a clear breach of EU regulation 10082008, which gives the airlines the freedom to set prices free of national interference. And, you know, we're still calling on DG move to take action on this. They've written to the Spanish, but they haven't yet started the enforcement proceedings and they should. South side would be more optimistic. It is now clear that the oil majors are cutting back development of renewable fuel. There will not be a staff supply to meet the mandate in 2030. And the only logical development will be to move back those mandates. I think it will come, but it will be come slowly. But Europe could do much more in terms of rolling back regulation and making air travel more competitive. The one very significant thing would be to move from the environmental taxes in Europe away from ETS towards Corsia, which is what the international long haul airlines pay. The European airlines should be moving environmental taxes away from ETS, which are more towards Corsia, so that we're all paying Corsia rents and then everybody is operating off a level playing field. And again, no action whatsoever. So as we're always with European Union, particularly Ursula von der Leyen, lots of talk and head nodding and no bloody action whatsoever. But we'll keep pushing. We'll keep campaigning. I do think the airlines, I do think we'll see some move back. I think the campaign for ATC reform is unarguable and the campaign to move environmental taxes towards Corsia, where European citizens will be paying the same environmental taxes as non-European citizens. Those two cases are unarguable and should be implemented. Neil, you want to come back in on the rationale for the bond repayments?

Yeah, sure. Good morning, Stephen, and thanks for the question. At the moment, as has been the case for some time, cash continues to be the cheapest form of finance for the Ryanair Group. We finished the year with over, or just under, 4 billion in cash. We're sitting on over 4 billion in cash at the moment. So we're planning on the basis of paying down the 850 million bonds in September. For that bond, the coupon of 2.875%. If we were to refinance that today, we would pay somewhere in excess of 3.5%. So cash continues to be the cheapest form of financing. We've got another 1.2 billion bond with an eye-watering coupon of .875% maturing in May of next year. And again, unless we saw a significant dip in share prices over the coming months, we would finance that also out of our own cash resources. The Revolving Credit Facility is a great opportunity for our banking community to step up, put some balance sheets at risk, while getting opportunities to participate with us on currency and on jet fuel and carbon hedging. So we had an opportunity in March to increase the size of the Revolving Credit Facility from 750 million to 1.1 billion. We upsized the banking group from 14 to 17 and we extended the term out to March 2030 from 2028. There's a very low cost facility. Most of it's undrawn and to be honest, we probably won't draw much of it over that term unless there are certain shocks or opportunities that we want to jump on top of. But it's priced at a very low margin over your iBor. So it gives us lots of flexibility and lots of liquidity and really it's an umbrella if it starts raining. Great, thanks Neil. Thanks,

Neil. Next question, thanks, Ewan.

The next question goes to James Hollins of Exxon B&P Paribas. James, please go ahead.

Thanks, mate. Hi, thanks. If I can come back on unit costs, unlike Jamie Robotham, I'm going to give it a go. If I did my maths correctly, you're looking at hedged fuel down about 4% year on year this year. You've talked about overall unit cost up one to two. I assume that implies extra unit costs up maybe three. I think you flagged double digit increases in things like root charges. Maybe just, Neil, can give a bit more granularity on where else you're seeing some costs inflation, where you're doing much better than that. And the second one, thank you for your comments on ETA. That was interesting about them pricing more or pricing up. Are you seeing any sort of irrational behaviour by any competitors in Europe, whether it's on growing ridiculously or putting fares down? I would think maybe sort of whiz air as they grow again. Any comments for you? So thanks.

Okay, thanks. I mean, there's not much more we give you in terms of colour. You know, I think it's a cautious guidance. The unit costs up one to two percent. You know, we still have 50% on hedged fuel that could kick in a significant saving which would bring down unit costs. It might go the other way. The one call out we would have at this point in time though is, you know, root charges ATC fees, which are going up by, you know, across Europe by another double digit percent for probably the world's most spectacularly shitty service. They'll all start no showing for work style next week at the start of June. A punctuality which has been at record highs were delivering 85 to 90% on time performance up to the end of May. Last year that fell to 60% in June, July and August and we expect the same to happen again. Again, we should expect this every year. But what we're entitled to expect is some action from Ursula von der Leyen and her useless crew to reform ATC and yet nothing happens. So there are costs that are moving against us. We've also done another round of pay increases with labour starting on the 1st of April. You know, that's part of a long term, four and five year pay deals. But generally speaking, I think we're reasonably comfortable with where unit costs are. I mean, what we've been trying to do is to transition across to the max 10 deliveries, which we hope will happen in spring of 2027. And those aircraft will transform our operating costs. You know, we get 20% more seats, they burn 20% less fuel and you can argue whether fuel over the New Year term will trend downwards or upwards. I think on balance it will trend downwards into the US midterms next year. But you know, the issue for us in unit cost, Jamie, is not our absolute unit cost. It's what are the competition doing? And if you look at the reports from all of our competitors across Europe in the last year, they've seen unit costs rise from between 5 to 15% in the case of one spectacular competitor who couldn't manage costs if he jumped up and bit them. They are increasingly exposed to financing and leasing, rising leasing costs and all of those are rising rapidly. So the unit cost gap between us and every other airline is getting wider. And we have a unique 12 months this year where we have a week prior year comps. So I think we will make a we look good this year. But bear in mind that some of that is due to week prior year comps. And touching just on the pricing, there's nobody out there doing any irrational pricing because there's no real capacity growth. You know, Wizz are taking a couple of aircraft, but frankly, we don't see them in our marketplaces. They're still taking capacity away from our markets. They've closed three routes out of Vienna down into Italy in the summer where we're the only competitor in those marketplaces. We don't see much out of easy just. There's been a little bit I think some pressure on some of the that the tour operators to we inject to our seem to be kind of doing a bit more seat only pricing. We think that's the reverse that the trends last year were during the OTA boycott. Some of our kind of holiday customers may have moved towards the tour operators. They've all come back to us this year. But no, I mean, everything we see across the marketplace, probably driven by us only growing at 3%, which for us would be a historically low rate of growth is everybody is pricing up. And most of them pricing up more than us. Do you want to add anything on that? No, I mean,

you know, it's better like easy jets is not growing. And you know, continue to close, you know, a number of number of bases. You've got ways largely going in places like Romania and further out to the sands and that. So we don't really see we don't really see them growing in our markets. And we have seen some discounting from competitors, but not a rational discount. And as Michael said, that's manifested itself, particularly those that are selling package holidays where they've got the option of package holidays and seat only. They seem to be discounting on the on the seat only rather than on the on the package side. But

their discounted pricing is still materially higher than our kind of entry pricing. So at the moment, you know, everything we see into the summer season, Q1 and Q2 is strong forward bookings are stronger than we'd expected for bookings, closing off some of the cheaper seats. And we're pricing up, you know, very strongly into one, but it's a way but I think the only issue for us at this point in time is this in the first half of the year, do we get back all of last year's 7% decline or most of it? I'd be more concerned. I think we'll get back most of it, but not all of it. And I could be pleasantly surprised on the upside, but it's too early to say. You know, remember, when things are going well in this industry, that's always when some curveball comes out of left field, whether it's geopolitical issues, terrorism attacks somewhere, something. So we're always cautious when things when things are going well this well, usually something else goes wrong in this business.

Just before we move off this question, I just like to add on the cost side, Michael, we did call out additional environmental costs in the release. This is the staff mandates that have come in this year and the full on wine of DTS credits. If I was to point to one area where I feel a number of the analysts are maybe a little bit light, it's on that. You know, we've we've guided that we're moving from 850 million charge last year to over a billion this year. And I still feel that maybe that's James where some people are a little bit light in their numbers.

Okay, thanks for that. Next question,

please. The next question goes to Harry Goers of JP Morgan. Harry, please go ahead.

Morning, Michael. Morning. First, just on just on just on transatlantic leisure traffic, you know, you seeing any evidence that that's redirecting to places within Europe on Ryanair and said this summer, and would you expect any material boosting demand or yields from that? Or is it just too hard to tell at this stage? And then just on the the share buyback running for six to 12 months, just what's your thinking in terms of the timeline? There like will it be at the long run of the time frame, given whether shares are trading? Yeah, just what your current thinking is on the pace of completing that. Thanks a lot.

Okay, as in the first half, look, I mean, it's too early to say yet, but anecdotally, there seems to be a kind of a weakness in the EU originating transatlantic travel, trying to US originating is strong into Europe. We think that might be helping. I mean, I think that might be a trend as a perception, certainly in Europe, that the US is an unwelcoming destination at the moment. That seems to be translating maybe to a bit more holidaying at home in Europe. We see no decline in the inbound transatlantic to Europe this year. And, you know, all of the metrics we see forward bookings into Spain, Italy, Greece, the holiday, the islands this summer has been reasonably strong. Both on the charter side, demand is strong, pricing is strong. And we think there may be some element there. But, you know, I couldn't put a number on it. It's more really anecdotal than anything else is that there's a little bit of a reluctance of people in Europe to travel in transatlantic states and they're staying at home in Europe. But I wouldn't want to put too much more on that. I think the underlying trend on pricing here is not driven by transatlantic demand. It's driven by heavy capacity constraints in the European marketplace, which I think will roll out this year and probably next year again. On the buyback, Neil, before I give it to you, you know, we're announcing six to 12 months. I think we've had a strong run in the share price. The buyback comes from the fact that we're surplus cash at the end of the year because of the Boeing delivery delay. So I'm not that fussed whether we do it over six or 12 months. I think Neil and the finance team will largely drive that. But I would caution, I don't think, you know, I think we'd be reluctant to promise any more share buybacks for the next year or two. We have two billion of bonds that we have to repay in the next 12 months. That's a big slug of money. We do need to keep building a modest cash position thereafter. That will take us into the run into the Max 10 deliveries running into the summer 27 and summer 28. And we will spend a considerable amount of money on opening two engine shops in the next two, three years where a lot of the order for tooling and spares will be front ended. And, you know, and we're looking again, particularly on the Leap 1Bs, we may need to buy some more spare engines there. So I would be I think this year share buyback will be the last one for a year or two unless we do better than we plan on profitability and cash. Neil, maybe you want to add anything to that on the buybacks?

I would say, Harry, I would be expecting it to run slower rather than faster. So closer to 12 and six last year's 700 million buyback was accelerated because we saw a significant dip on the share price and we leaned into it. But if we're in more normalized markets with an 850 million bond maturity in September and a 1.2 billion bond maturity in May of next year, I think this will go a bit slower. So I would be expecting closer to 12 than six months. All

clear.

Thank you both.

Thanks Harry. Next question please.

The next question is to Alex Irving of Bernstein. Alex, please go ahead.

Hi, good morning gentlemen. Morning, two from me please. First one, just coming back on cost. You mentioned the moment ago around the paying, because in the first of April, which we used to quantify that, which we're thinking about in 2026 and then any remaining years as a multi-year pay deal. Same questions on tariffs. Would it be right to assume you can just take delivery of planes into the UK AOC and avoid any tariffs on delivery itself? But also, to what extent would you expect tariffs-driven increases on upstream components to be the upward pressure on future capex? Thank you.

Sorry Alex, your line was breaking up. I missed the first half of that question. It was quite around pay increases. Could you just repeat the question? I'm asking about

pay increases on deals. Correct, you just mentioned the pay increases

from the first of April. If you could please quantify them.

Well, the answer is no, we don't quantify pay increases. The pay increases the first of April this year are years three and four of what are four and five year pay deals. We have another agreed pay increase in April of 2026. They are modest because we tend to front end the pay deals where we do multi-year pay deals. But no, we wouldn't put a number. Darrell Hughes is here with me, who's our director of people. I ask him to give some outlook or give some color on the pay negotiations or where we are on pay deals. Thanks

Michael,

I think you've

covered most of it there. We've got a couple of cabal crew deals expiring next March, a couple of pilot ones as well. The big chunk is in March 2027, so that's really when the cycle comes up for the next round of deals. And as you say, we've got modest increases in the tail end of the existing agreements running in April 25 and into April 26 as well.

And we think the timing of those deals was driven Alex, but as we get into April of 2027, we're starting to get into the max 10 deliveries where we would be getting a reasonable productivity benefit out of those aircraft. Now we're getting a reasonable productivity benefit. I think we can incorporate or afford a reasonably favorable or generous pay deal with our people without going mad over a three or four year period on the back of productivity gains that will be delivered by the max 10. The tariff question again, I think if I understand, you broke up again, but is one of the solutions with tariffs is that we take aircraft into the UK? Our view generally on tariffs is as follows. One, all of the evidence out of the Trump administration is that they announced tariffs and then they postpone them for 90 days. They do a kind of an outline trade deal with China, with the UK, and they get there's another 90 day postponement. We don't foresee tariffs being an issue. We think trade deals will replace the risk of tariffs and the imposition of tariffs on commercial aircraft will be delayed until there's a trade deal. We would be very surprised if the Europeans impose tariffs on commercial aircraft, given that Airbus exports much more wide body long haul aircraft to North American customers than Boeing does to Europe. It couldn't be ruled out. But ultimately, our deal with Boeing is a fixed price agreement, so the tariffs will be for Boeing to count, not ours. But we would certainly look work with Boeing to take deliveries into those economies or those countries where, you know, we would by working together with Boeing be able to take delivery of aircraft without any risk of tariffs. If that was the UK or somewhere else in Europe, we'd certainly have a look and we would be bought work with Boeing on that.

All right, thank you.

Next question, please.

The next question goes to Dudley Shanley of GoodBuddy. Dudley, please go ahead.

Dudley, hi. Hi, Michael. Two questions. First of all, I think you just said on the video today that there was no new bases, but there's 160 new routes. Are the levels of route churn picking up as capacity slows? And is that to manage costs or is there just better opportunities on the newer routes? And then the second question is a longer term one. In terms of, I guess, the capacity constraint in Europe and the consolidation of the industry, do you still think longer term we move towards four big operators? Thank you.

OK, Dudley. Eddie, do you want to take the first half of that since you're yourself and Jason are dealing with the churns?

Yeah, I mean, there has been a bias towards like increasing frequencies as opposed to launching new routes where you've got to do a lot of investment in lower fares. So and we've also picked up some extra efficiency, particularly as we launch the winter schedule this year, where we're flying less on Tuesdays and Wednesdays and slightly more on Thursdays. So we're probably at the at the limits of what we can do. We've been on a program of that for the last two to three years. So, yeah, you're seeing less new routes, more frequency building and a lot more analysis on how we allocate capacity as well, given that they are just smaller numbers. And we have moved around capacity and closed some bases as well, in particular in places like Scandinavia, where you've seen Billund clone and you've seen, you know, taxes rise there as well, tourist taxes. And you look across the water in Sweden, where taxes are going the opposite way and then they end up with essentially the Billund aircraft in the same season. And so we've continued to do that churn and we'll be very judicious on opening new routes. OK,

thanks Eddie. And capacity constraints, do I think the world moves in the trend of four big operators? Yes, absolutely. You know, it's going to be we are heading for 200 to 206 to over the next two years, 250 million passengers, the Lufthansa group, the IAG group and Air France KLM. We think there will be further consolidation. Obviously, TAP is next on the block. I think inevitably Wizz will have to find a home somewhere with one of the bigger airlines because they clearly can't make any money as an independent airline. And then I think logically that's what over the medium term will happen with EasyJet. The challenge for I think all of the other independent airlines is what do you do when Reiner keeps expanding in on top of your geography or your marketplace? They don't seem to have a, you know, they don't have a cost base that would enable they generally as a group of airlines don't have a cost base that enables them to compete with Reiner. Their costs, unit costs are still rising while ours are flat or marginally falling for the next couple of years. Thanks, Dudley. Next question,

please. The next question, go to Safanzy Sith or Framon James. Safanzy, please go ahead. Fabi,

hi.

Hey, good morning,

everyone. Just a couple of aircraft related questions just on the NG retirements. Were those as expected? It looks like maybe five are retired. And just how are you thinking about disposal, disposals and kind of the fiscal year 26? And my second question, just on the max delivery, could you clarify that, Michael? Did you say like you're not taking any more deliveries ahead of the summer and the rest are coming here in the winter? Is that the way we should think about that? The rest of the max delivery?

Yes, Fabi. So we had the last five of this year's deliveries. The deliveries for this summer, the last five were delivered in April. All of them came a couple of days early, which is positive. We had already agreed with Boeing that we delayed the last 29 of those aircraft. So we've 181 of the 210 game changer order now delivered. We had agreed with them that we would delay the last 29 to the spring of 2026. They've asked us recently, would we take them in the autumn of 2025, which doesn't really suit us. We can't deploy them during the winter, but we're going to take them early so that at least we ensure and guarantee that we have those there for the summer of 2026. Obviously, that's also a consideration if there were tariffs, we could delay those deliveries once the aircraft are manufactured. We could bring them forward or delay them. As long as we get those aircraft in advance of summer 2026, we'd be in very good shape. Coming back then, and then obviously the next big issue is getting the MAX 10 certified and be kind of guaranteeing or ensuring that Boeing delivers those first 15 of those aircraft for summer 27 growth, which again is kind of critical to our continuing capacity growth here in Europe. But like Boeing, I'm growing more confident that that will happen without disruption. On the NG retirements, again, we had planned to start maybe retiring the first of the NGs sometime around 2020-ish, 2029-ish. Again, we could time that around the deliveries of the MAX 10s. Obviously, the first issue there is we still need to, we have the LOUDOUT-27 Airbus aircraft. They're due for, those leases run out in 28 and 29. We would want to try to replace those with some other Airbus aircraft, but at the moment we're still looking at those opportunities. But the market isn't in our favor in the short term. I mean, current market lease rates are more than double what we pay per month on those 27 aircraft. So the first issue would be how do we kind of replace those preferably with Airbus? If not, we'd replace them with maybe some of our older NGs. And then by the time we get into 29-30, we're taking 50 MAX 10s a year, we would then begin to start to retire some of the older NG aircraft. We have no plans at the moment to dispose of them. It's a bit too far away yet. You know, clearly in the current marketplace you could dispose them because the leasing companies are short aircrafts and are pricing up. But, you know, we're making so much money out of those aircraft, we would want to continue to maintain our own capacity growth in a market where we're challenged. It's more profitable for us to run the aircraft and operate them, as you'll see in this morning's numbers and hopefully in next year's numbers, then it would be to sell the aircraft. So nothing in the near term on NG requirements and we're very happy where we are in the MAX deliveries. Next question. Thanks, Avi.

The next question goes to Jared Castle of UBS. Jared, please go ahead.

Jared, thanks. Hi, thank you everyone. Good morning. Michael and team, I mean, assuming your shares remain above, you know, the 2021 level, it looks like you should be able to get your options vesting in about 16, 17 days. I wanted to get your thoughts, A, in terms of, you know, is there potential for a follow-on scheme? I don't know if it's 26, 27. I know the current scheme runs till March 28. And then just also how you see that as an incentive program in general for Ryanair management going forward. And then the second question, you know, it seems like there's more confidence around Boeing and, you know, the MAX 10 getting signed off. But just wanted to get your thoughts on, you know, if it doesn't get signed off on, you know, potentially doing more leases or indeed, you know, maybe there's an external factor where you want to accelerate capacity such as, you know, peace in Ukraine. So just any thoughts on, you know, that optionality either way. Thanks.

OK, thanks, Jared. I'm glad somebody raised the options question since I'm sure some morons in the daily mail will be writing it up in about 16. The options don't vest them until 2028. We may achieve the targets either later on this month or later on this year, but none of those options, and it's not a bonus, it's share options, don't vest them until 2028. I and the rest of the management team have to stay here to 2028 and continue to deliver before we can actually get hold of those share options. So they don't come around for another, what's that, three years. And a lot can happen between now and then. But I accept there's a possibility that we might at least hit the performance targets either later this month or hopefully later this year. Remember, there's two targets. Share price of 21 euros or an annual profit of 2.2 billion. Chance of follow on scheme, I think pretty limited. The board about three or four years ago moved away from share options. We originally had share options for many years that they were driven by profit targets. And the problem is that creates a regulatory concern that we can't share forward looking profit option for forward looking profit targets. So we've moved away from those for the last, I think, three years. Certainly the senior management team have been getting LTIPS, which are awarded every two years. And that seems to be a kind of quieter, more reasonable way of rewarding as superior management performance. And I think that may be what will continue going forward. Obviously, my contract runs out in twenty twenty eight and there'll have to be some discussion, I presume, with the board and the Redcoast to how my remuneration will be fixed from twenty twenty eight onwards if they want me to stay on after twenty twenty eight. I will have all the usual bullshit out of the newspapers. All I would draw the point that we are. I think we're delivering exceptional value for Ryanair shareholders in a near of a premiership footballers and managers are getting paid twenty or twenty five million a year. I think Ryanair shareholders are getting a particular value out of our share options about both mine and the rest of the management team. Moving on to some more sensible topics. If the Boeing Max 10 doesn't certify, we've already had that discussion with Boeing. Boeing have to make something. And it is what is likely to happen, although I think it's increasingly unlikely, is that they would make more Max eight two hundreds. And so Boeing have kind of confirmed with us that if for some reason the Max doesn't they don't think the Max will get certified later this year, they will start to make more Max eight two hundreds and deliver those to us maybe for summer twenty seven or summer twenty eight. Boeing do have to make something. I'm reasonably confident this day that they'll be making certified Max sevens and Max 10. But the fallback position is they'll make more Max eight two hundreds and they can do that with about 18 months notice. It's only a difference in the fuel supply. So one way or another. And now obviously I would prefer the Max 10s because they have 20 percent more seats and 20 percent less fuel, whereas the eight two hundreds have only got four percent more seats and 60 percent less fuel. So operationally and Boeing clearly want to sell more Max sevens and Max 10s than eight two hundreds. So I think that's the fallback position, which both Boeing and we would be reasonably comfortable with. But I think the likelihood of that fallback are receding as confidence grows that they'll get the seven to 10 certified later this year. Thanks, Jared. Next question, please.

The next question goes to Rory Cullinane of RBC. Rory, please go ahead.

Rory, I guess. Good morning. First question on slide nine, where you're expecting seven percent passenger growth in four year 28. It looks like that's some just over two percent fleet growth. So is there something else other than fleet growth going on there? And then secondly, just on cash tax going forward, the cash tax charge was just under half the tax expense on the income statement. So what are your expectations in future? Thank you.

So, Nilo, Tracy, my lord, my dear, the cash tax question. Let me touch on you. Go to slide nine. We set out there what we expect from the kind of the fee on the feed growth. We expect FY 27, where we would bet his summer of 26. We pick up the last 29 of the engine, the Max aircraft, the game changer aircraft takes the fleet up to close to 650 or 650, 655 aircraft. The following year, which is summer 27, we go up by 15, which is the first of the 10 first 10 of the Max 10s, the first 15 of the Max 10. Sorry, which have 20 percent more seats. We do believe we would actually pick up the reason that there's a little bit more passenger growth there is that we think we would be able to deploy some more of those aircraft in the autumn of 27 or into the spring of 28. We'd have a bit more growth in the winter half of the year. In addition to the summer growth, we wouldn't have any issues over Boeing deliveries during the winter period. We could deploy more of that capacity during the winter period, which is why the passenger growth slightly steps up a bit from four percent in FY 27 to seven percent in FY 28 and then levels out at four percent in 29, four percent in 2013. And Neil, do you want to Neil or Tracy, do you want to take the cash? I'll

cash tax Tracy's on a flight to Canada at the moment to go over and meet our shareholders there. We expect cash tax to remain relatively light for the next number of years with significant capital allowances due to the volume of aircraft that we're taking delivery off. The effective tax rate this year and last was with 10 percent. That will gradually creep up over the next two or three years as the OECD rules get adopted by more and more countries across Europe. Unless, of course, there's a rollback given what's happening in the United States where they've now moved away from OECD. But on cash tax, it'll be relatively modest in the overall scale, given the capital allowances. Great. Thank you.

Thanks, Neil. Thanks, Laurie. Next question,

please. The next question goes to Maneba Klayani of Bank of America. Maneba, please go ahead.

Maneba, hi. Yes.

Good morning. So I wanted to ask firstly around insularies. There was around just one percent growth per Pax last year. How are you thinking about it this year? Is that kind of a similar flat one percent increase that we should be expecting? And secondly, if I could just go back to unit costs. Through the quarters, is there any cadence? Is one half a bigger increase than second half or anything like that that we should be looking out for? And just secondly, a quick clarification. Have the guide, is that based on the current jet fuel price or not? Thank you.

OK, Neil. What's the guide you're talking about there? I didn't give any guide. When you

say, no, a unit cost, when you say the modest increase is for the 15 percent.

Yeah. That would be current jet prices Maneba. Because the current jet price Maneba as you see it today, like it was taken at a moment in time.

That's based on what jet closing last Friday at about $67 a barrel for you and has 15 percent. Exactly. OK, Neil, I suppose you want to take insularies and perhaps. I'm not. I'm not. I'm not.

Just over on cost. I'm not going to break out the quarters. We've given a full year number today. We're not going to go into the micro quarter by quarter, but I think there's enough there Maneba for you to build from. And then on the insularies up one percent last year, we'd anticipate something similar, maybe slightly better in FY26. So I think, again, if you models plus one percent, you probably won't be a million miles away on a per passenger basis.

Thank you. OK, thanks, Maneba. Next question,

please. The next question goes to Gerald Koo of Liberam. Gerald, please go ahead.

Gerald, morning, everyone, too, if I can. Firstly, on finance income, which did seem to be very high in the second half in the fourth quarter, I think implies an interest rate of about 10 or 11 percent. I think that line includes some compensation from Boeing. Firstly, is that right? And if so, how long is that likely to continue for? And secondly, you talked about the Spanish rules on cabin bag charges. Can you just clarify what you're actually doing? Are you still able to charge passengers for cabin bags coming out of Spain or are you actually prohibited from doing that at the moment? Thanks.

Yeah, no, the Spanish bag ruling, Gerald, is under appeal to a regional Spanish court. The appeal is suspensory, so we continue with our policy, which is the we have one large free carry on bags for non priority passengers. Priority passengers get to bring two carry on bags and there will be no change in those rules. And we think ultimately, unless the commission forces the Spanish to stop interfering in pricing using our in breach of EU regs, if you go to the ECJ, which could take about two years and it will undoubtedly be overturned by the ECJ. So it's only a question of time. But at the moment, there is no change. There's a bit of jumping up and down, you know, various consumer organizations. Oh, glorious victory for fucking passengers. You can now bring as many bags as you want. Nobody in the industry wants to go back to that kind of free for all. It will result in much bigger airport security queues. It will result in much higher costs for airlines and higher fares. It is the kind of dumb regulation that Draghi has been pointing out in Europe. The airlines should be allowed to get on with what we do. We have 200 million passengers last year who demonstrate that they're very happy with our baggage policies. And all we want to do is to comply with the sizes so that we don't have we really don't want anybody's baggage fees. We just want to comply with the bag rules, which makes airport security and boarding aircraft much more quicker. Finance income. There's a tiny bit of Boeing compensation in the finance income line. It's not material. It will not continue. Boeing have caught up on those deliveries. There we were sorry, they've sent 29 deliveries next year. There'll be a little bit of compensation, but it's very modest and the numbers are small in the context of a 1.6 billion full year profit.

I'd also add, in the MD&A we do break out that we've got strong cash, we've got low financing costs in the business. And then as Michael said, the modest Boeing compensation, which we received a bit in Q3 and Q4. But it is a confidential agreement. We can't and we won't break out the exact numbers. It's coming to an end at this stage with just the 29 delays to be caught up and then hopefully no more thereafter.

Not alone is it very modest. It doesn't go anywhere close to make up for the shortfall we have of the delay growth in this marketplace. Thanks. Your next question, please.

The next question goes to Andrew Lubbenberg of Barclays. Andrew, please go ahead.

Oh, hi there. Can I just check? You spoke about the expenditure on the engine MRO shops. Is that all included in the rough capex guidance you were given earlier? No. And then the second question would come around. No. It's not included? No. No. Are you able to quantify like how big it might be? Too soon and too

quick. No.

OK. Yes. And then Ukraine and Israel, there's been lots of excitement about the potential of the peace in these markets, yet we still don't have peace. How are you thinking about it and were there to be the opportunity, how would you execute it? But yeah, how are you thinking about those two potential opportunities?

OK. So, take the first part of the engine capex number. It's not all of it. And clearly we're negotiating this. So it's also subject to finalizing location of both shops. And there's obviously some kind of government assistance in some of that. So but the reason I want to draw attention to the engines, there are some it is a big capex number. And it will be a big capex number, but it'll be spread over a three or a four year period. But it's a big number. And but it's something I think that would secure a significant cost advantage for Ryanair going forward. Touching on the Ukraine and Israel situations, I mean, clearly we want to see peace in both. Our Israel Tel Aviv schedules and, to a lesser extent, the Jordan Sheds are repeatedly being disrupted by that conflict. At the moment, we've canceled all the Israel flights to Tel Aviv until early June. And I think we're running out of patience, too, with Israel and the Tel Aviv flights to and from Tel Aviv. If they're going to keep being disrupted by these security disruptions, frankly, we'd be better off sending those aircraft somewhere else in Europe where at least we can sell the seats without these kind of repeated disruptions. Ukraine is clearly a big market for us. We were the second largest airline in Ukraine before the Putin's illegal invasion. We would wish to go back into Ukraine. We have been disappointed, however, at the response of the Ukraine airports, who have basically refused to engage with us in a post-market, in a kind of a post-war marketplace. And we would have and we have an extensive plan to go back into Kiev, Lviv and Odessa. But we're not sure about the integrity of the runway or the airport in Odessa, but certainly Kiev and Lviv. At this point in time, I would have said we'd charge back in there with five million passengers in the first year, going to ten million passengers within three or four years. But unless the airports come up and at the moment all we're getting out of the airports here is just pay the public charges. If that's their response, then I think we would certainly charge back in there with a more extensive network, but a more narrower. I think we'd be lucky going back here with maybe one million passengers in year one, rising to maybe two or three million. And we simply wait for the Ukrainians to realize that nobody else has the seat capacity. If you want to recover and rebuild that economy very rapidly, the egregious profit-making by empty airports is not the way forward. If you're going to rebuild the Ukrainian economy quickly, those airports need to get real, follow the example of many other European airports and aggressively discount what is an empty airport. And not just to Ryanair, they should be aggressively discounted to all airlines. It's just that Ryanair is the only airline that will go in there on day one from about 26 or 30 European cities, because we're the only one that has bases spread across those 26 or 30 cities. And there's a couple of very lazy airport directors in Ukraine who need to get up off their fat arses and do a deal with us quickly if they want real radical growth and real radical economic rebuilding and development in Ukraine. Thanks Andrew. Next question please.

Next question goes to Alex Patterson of Peel Hunt. Alex, please go ahead.

Alex, hi. Hi, morning everybody. Two questions please. Firstly, would you mind just repeating what you said about FY capex guidance, please? I just missed that. And also, I just wonder, you've been very clear on holidays that you would not be interested in offering them until your aircraft deliveries in the 2030s. But your relationships with OTAs that have signed agreements with you seem to be working well, that seems to be helping you. I just wonder if you might be interested in helping them growing in regions where perhaps their brands aren't so strong, perhaps with people starting a booking by booking flights on your website and then being directed through to theirs in order to book a holiday.

Yeah, okay, Alex. Thanks. Neil, you might take the capex guidance. I'll deal with the holidays question. Be careful here. I didn't say we're not interested in holidays, but I think the development of a Ryanair holidays brand can only come when we, like EasyJet or others, have significantly slowed our growth or, you know, we're not eventually growing headline traffic at all. We're too busy getting on with growing headline traffic by four or five percent a year, which in our case is now 10 million, 10, 15 million passenger growth. We're using Ryanair Labs to transform the way we deliver that service and dramatically transforming our cost base. You know, we've gone in-house with all our ops systems. The kiosks are transforming our airport and handling costs, all that kind of stuff. So we have too much going on. We're very pleased with the approved OTA deals. So as are the OTAs themselves, they've been very complimentary on the beach, love holidays and those about the growth they're enjoying or stimulating with the Ryanair approved OTA deals. And we're very content while we're busy growing headline traffic for the next five or 10 years to let them monetize the holidays or let them work the holidays. If there's particular markets they want to work with us, we'd be very happy to kind of take that on board. But we want them to do the heavy lifting. I really don't want to waste our time and resources running around places like the Canaries or Greece trying to buy fucking hotel rooms or mom and pop fucking holidays or organizing bus transfers. We have more to be getting on with. If you look at our profitability, even this morning in the year where fares declined, you know, we're reporting about 1.6 billion in profits. So, you know, we carry about twice easy as traffic and we're about three times about three times their profitability. So I'm not dissing the easy at holidays, but our jet to the holidays have a value, but it's a bit of a niche. But it's a niche. I think we don't even see looking at when our growth materially slows down. But if there's something that they want to work jointly or there's new markets they want to break into, we'd be happy to to work with them on that.

Maybe

Jason might ask you something there as well.

The OTAs are agile enough. They don't need our help on that. There's already evidence that they're moving into winter weekend breaks, which was less of volume prior to the agreement. They never really invested in that because of the potential sort of disruption. But they're now morphing into that and they can they actually have more of an agility to put things together. You could argue against those that go after buying bedbanks and that. And there's probably further disruption to come with AI and how all these things are going to be presented in the years ahead. So there's probably going to be a better wave of that. But the OTAs are able to take take our inventory and they're the experts in putting that together at the moment. And they're probably much more agile than the more traditional model, even though they have any surprises.

OK, thanks, Eddie. Before we open it up for next week, that's a useful segue. John Hurley here, who, as you know, is the head of Ryanair Labs. And John, be just useful on the conference call. Give us a couple of pointers on what Labs is working on, where we think the next development in terms of kind of, you know, customer improved customer experience and lowering costs are coming from.

Thank you, Michael. As you touched on the biggest piece of news from Labs this summer has been the role of our new system for ops, crewing and scheduling. We call that ROCs. It's giving us efficiencies right across the board from tail allocation to main troll engineering to crewing to annually planning. And it's all right in our code, right in our rules. And it's our efficiency is baked in. So we're in a very good place there. On the website front, the big news is we've launched primes over the next two months going well for us. We're focusing heavily on customer service and customer service improvements, helping customers self-serve to reduce our costs, which is important and a better process across the board. And the big improvement coming forward is going to be fully 100 percent mobile boarding for dish on mobile app. And that will happen next November. There are key main highlights for the very hard machine learning. Looking at general general AI on machine learning. The biggest wins for so far have been the damning pricing around sillypox and on some of our fairs.

Yeah, but you said just along the ROCs system, explain to people what happens now. For example, there's a disruption and we now allocate, you know, with 600 aircraft. How do we identify standby pilot or, you know, there's a disruption? How does the machines are now determining which pilot or which cabin crew standby crew gets called?

Yes, that is correct. So historically, when we had a disruption with crew people who was next available on a list, sometimes that was alphabetical, not an ideal way to do it. Now with computer, we can actually look at who is the best hours to cover standby will not impact their schedules in the following weeks and following months. All the cabin crew and pilots are limited to FTLs. You can't just let you go by an expert on the name. That's now been fully automated. We're now recovering from major disruptions in hours as opposed to days. So it's been very, very positive. Good.

OK, thanks. I should say too on Rainier Prime, I've been one of the great skeptics of this thing. I thought it was a complete load of bullshit, but I have been persuaded as usual that I'm wrong and the IT and labs team are right. What's different about this is the member subscription service for 79 euros. We promise that you have benefits, multi-year or year long benefits of travel insurance, seat selection, et cetera. What was different in Rainier, we said we'd give you one major seat sale each month in the first for a cost of 79 euros in the first three months. We've delivered seat sales worth over 140 euros. And that's just the first three months. We've nine more than to go. We will deliver something of the order of over three to four hundred euros in seat sales exclusively for Rainier Prime members over the next 12 months. I think actually the seat sales will get better as obviously we move out of peak period into the winter period. There'll be more availability and deeper discounts. And those are absolutely secure and only offer to it's not we're not including them in in other seat sales and particularly as prices rise, this ability to kind of pair our design of seat sales specifically for members has been something that I certainly have been surprised at. I mean, I thought we'd be lucky if we sold 100 Rainier Prime memberships. We're now up to 30,000 at 79 euros. I think the only mistake we made is we underpriced the Prime membership. It should probably we should probably charge about 99 euros for it. But if we got the pricing wrong for the first 12 months and for 79 euros, Rainier Prime members get about three or four hundred million in three or four hundred years in seat sales. So be it. And the numbers continue to increase. It's never going to be huge. You know, we're probably at this point in time going to generate about two and a half million in membership fees in a company where we're looking at making one point six billion. It's not huge. But I think it is very critical to our ability to target seat sales, to open selective seat sales where we don't want to do a big broad brush, jump the shit out of pricing across all the geographies. I think Rainier Prime would be something that we will continue to look at, work on. And again, it's a demonstration of what labs can do internally and will continue to do. Next question, please.

We have no further questions. I'll hand back to you, Michael, for closing comments.

Fantastic. OK, that's great. I didn't

cover Alex's capex for him. So we just covered that. Oh,

sorry. Apologies.

Alex, I'm assuming you missed the question at the start of the call from Jamie in relation to phasing of Max PDP over the next three years. So as I said, as I said to Jamie, PDPs and delivery payments are going to be relatively light over the next couple of years and then start to phase up into FY28. So in the current year, we're looking at a capex figure around two billion, maybe a bit more into next year. That's maintenance capex aircraft and various other odds and sods. It'll dip below two billion next year. And then I said, Jamie, these are all very broad brush, somewhere between two and a half and three billion in FY28. And then, of course, when we've more more ideas around engine shops, we'll we'll bring those numbers forward.

OK, thanks, Dave. OK, ladies and gentlemen, thank you very much for your time this morning. We have an extensive road shows. We have something like 12 teams on the road around Ireland, the UK, Europe, East and West Coast, US. And we're also going to do some online teams meetings with Asian investors as well. If you'd like a meeting with us, please come to us through city or broker city Davies or Goodbody. We'd be happy to include you either in lunch or breakfast or set up a one on one meeting. If anybody likes come to Dublin over the summer before we get to the AGM in September, see the operation. You're more than welcome. And thank you for your support over the last day. Thank you for what has been a difficult and challenging 12 months. But I think, as you can see in this morning's numbers, we're coming out with strengthened, very cash positive. And we will be paying down debt aggressively over the next 12 months so that we'll be hopefully debt free in the next 12 months, still growing strongly in what I hope would be a more benign pricing and certainly more benign fuel environment as well. So I think hopefully we're set fair for reasonably strong summer trading as long as there's no unforeseen adverse developments in the next couple of months. So look forward to meeting you all at the Roadshow this week. And if not, that we're seeing in Dublin sometime in the next couple of months. Thank you very much, everybody. And thank you to the moderator for your time and assistance. Bye.

Thank you. This now concludes today's call. Thank you all for joining. You may now disconnect your lines.