Ryanair Holdings has issued five-year Eurobonds aimed at raising € 1.2 billion ($ 1.45 billion) as it prepares for the surge in demand during the 2021 summer season.

The Irish low-cost carrier said the bond will be listed on the Irish Stock Exchange and offer a fixed coupon rate of 0.875%.

Ryanair Holdings recorded a net loss of 815 million euros ($ 992 million) for the fiscal year ended March 31, 2021, but is hopeful that an ongoing vaccination campaign in Europe will lead to a relatively rapid rebound in demand over the course of the year. the next few months.

“[The vaccination rate] allows the removal of many travel restrictions during the peak period of July, August and September. And we expect to see our traffic recover strongly in this period … The traffic for the April-June quarter will however be further reduced. But we hope that the September quarter will see a significant upturn in traffic and that we will be able to build on this momentum in the third and fourth quarters of the current year, ”Managing Director Michael O’Leary said during of the quarter. call for earnings.

Despite the expected recovery, Ryanair expects a slight loss or break-even result at best during the current financial year.

In addition to its high liquidity and fresh capital, the airline sees its fleet plans as a major asset for the recovery period. Ryanair has 210 B737-8-200 on firm order from Boeing and deliveries are expected to begin shortly. O’Leary stressed that the guy would lower Ryanair’s costs and give it a competitive edge in a tight market.

At the same time, the group is seeking to consolidate its fleet around Boeing planes. Although in the past, O’Leary has seen Lauda (now Lauda Europe) with its fleet of Airbus fuses as beneficial to the group in that it has given it leverage with Airbus and Boeing in supply talks. , Ryanair Holdings no longer sees a future for the A320s. in its fleet.

“We are starting to return the first A320s from winter 2022. Over a period of three to four years, this fleet will be reduced,” said CFO Neil Sorahan.

Lauda Europe currently operates twenty-nine A320-200s. All the other units in the group – Ryanair, Ryanair UK, Buzz and Malta Air – only operate B737-800s and soon B737-8-200s. Sorahan confirmed that the airline is still negotiating a potential order for the B737-10, although deliveries of this type will not begin until 2026.


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