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ECONOMY 2012: Ryanair eyes endless euro zone crisis

Monday, July 30, 2012 - 03:55

July 30 - Demand looks weak right across Europe and there's little prospect of an end to the region's crisis, says Ryanair CFO Howard Millar.

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Europe's biggest budget add on run and missing full cost the Q1 -- the company is holding to profit targets. For the full year joining me is the airlines deputy CEO and CFO how it meant a morning Jeff how it. I'm recession austerity and high fuel prices from a burning bright spots here. Pardon -- -- and and that's a question and recession austerity high fuel prices a very bright spots for on that right now. While you know we're gonna make between 40440. Million euros and then very typical Marcus. Whenever our competitors are gonna make him very big losses so that's a pretty a bright spot. Can only assume though that lead the era of rapid expansion for the for Ryanair is off the table for the foreseeable future. Well -- delivery program is finishing at the end of this year so we will grow by 5% or four million passengers this year. I would probably go -- and -- a couple of million passengers in the following year. But that's pretty much the end in near term growth plan. I'm that he can get given what was seen in Europe from Jeff confidence in them and watching Herron Jeff confidence in the you're present lead isn't and soreness problem out. Well there's no evidence that they've made any difference. And we think this is gonna continue when it will end and -- got to be really knows. But it does looks like it's gonna end any time soon. So you still pessimistic. Well yes I don't I don't see you know we see generally austerity measures that the Spanish bailout coming. And there's no sign of or a European wide economic recovery. And so at the moment that is in Cincinnati lies at the end of the tunnel him. Well what specifically in Europe is bad news particularly bad for -- well I think it's right across the main consumers are being impacted right across Europe and and it's it's just a fact of life -- you know the business still goes on we're still gonna carry eighty million passengers this year. He was to buy coffee milk on the holidays. Traveler -- -- the world and is on display at the European financial crisis. I'm on the fuel price what will oil on the prize of all continue to wreak -- I don't have -- on the airline market. -- it's -- it's a big concern for us it's our biggest single cost and this quarter just -- it was 47% of our cost base. Than none obviously we're concerned about the weakening Euro as well because we have to buy dollars using euros. And so certainly -- prices and a weaker Euro is is a concern for us but we have hedged in. For this year is to go lower prices -- does -- its may be an issue. Coming for next year. Now what do you expect to happen with the with the with the US dollar amount. Pardon me who what when you talked about a week a year of being an issue have a strong developing an issue what are what are your expectations on the -- site. Well am I think that's -- there's probably being. A utilizing a a pretty rapid weakening of the Euro against the dollar. I do we generally expect that they -- that make correct itself as we come over the coming months. Assuming that the day European Union really gets its act together. And puts in place a recovery plan. I'm I know just to finish out with them how to -- -- staying in bed pretty mum on and on and -- guests but I had this question what what what do you even one -- this is a legacy airline burden would legacy costs what what he wanted anyway. Well look down force in Dover -- takeover panel rules and stock exchange rose so high country to comment -- any -- before them all right can leave that out of many thanks after talking with us. -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --

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ECONOMY 2012: Ryanair eyes endless euro zone crisis

Monday, July 30, 2012 - 03:55