Ryanair is hoping to fly 100 million passengers in its next financial year, according to one of its most senior executives.
The Irish airline expects to have carried 90 million passengers when its current fiscal year ends on March 31st and to have earned profits of between €750 million and €770 million.
Speaking at the Annual Global Airfinance Conference in Dublin, its recently-appointed chief financial officer, Neil Sorahan, suggested that passenger numbers could reach 100 million in the 12 months to March 31st, 2016.
Mr Sorahan was responding to a question from his audience suggesting the Irish low-cost carrier could align itself with another large operator.
“We’re doing very well, 90 million passengers this year, 100 million next year, at the moment we’re pleased to be doing what we’re doing,” he said.
Low risk
The airline will take delivery of 380 new craft from US manufacturer
Boeing
over the next nine years, by which time it says it will be the world’s biggest airline, carrying more than 150 million passengers annually.
Last year, credit ratings agencies Fitch and Standard & Poors handed it BBB+ ratings, implying that the company is a relatively low risk for lenders.
Following that it borrowed €850 million through a bond sale to capital markets.
Ryanair will use the cash to help foot the bill for some of the craft that are now being delivered to it. The airline intends using its own resources, it has close to €4 billion on its balance sheet, and other sources to foot the bill for the new orders.
Its latest deal is for up to 200 Boeing 737 max craft, which will carry 197 passengers, 4 per cent more than the current model, and burn less fuel.
Its finance chief signalled that it is going to concentrate on “core” European countries to grow its business in the immediate future.
Growing
He pointed out that it only has 15 per cent of the continent’s market as it stands, but its new planes should help it get to about 25 per cent. “
Europe
is primarily where we are focused,” he said.
The airline has set its sights on growing in countries such as Germany where it has only 5 per cent of the market and Italy, where it has taken the number one slot, but believes it has further room to expand. It is also looking at Scandinavia and plans on opening a base at Copenhagen Airport in April.
Ryanair will continue with its new policy of establishing bases in primary airports. Mr Sorahan told the gathering that airports are queueing at the company’s headquarters in Dublin trying to convince it to do business with them.
He predicted that the European market will ultimately be carved up between three long-haul players, IAG, Lufthansa and Air France KLM, and two low-cost carriers, Ryanair and Easyjet, with "some more marginal players at the edges".
