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Ryanair CEO Michael O'Leary talks earnings, outlook and Boeing management - YouTube
Channel: CNBC International TV
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good morning karen good to speak to you
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yeah i think you know
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we've produced a set of strong numbers
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for last year being the second year of
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covert we look forward to the current
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year with uh
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i think more optimism uh
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i think there will be a strong recovery
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certainly we're seeing that post-easter
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into the summer bookings are strong but
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at lower prices in q1 we see strong
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bookings but at slightly elevated prices
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in q2 but you know i think we've been
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kind of we've learned from the uh the
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the uh exuberant
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uh optimism at christmas and it was
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damaged by omicron at the end of
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november we looked like we're going to
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have very strong eastern it was damaged
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by the invasion of ukraine so
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they were still building up the forward
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bookings and that process is going very
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well in april for example we hit 91
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percent load factor which is the first
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time since covert we'd gotten over 90 so
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there's no doubt there's a strong
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recovery underway but i think we're we
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want to be cautious particularly in the
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second half of the year will there be
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another variant of uh
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a covet and we also need to keep a wary
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eye out for what happens with the uh the
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unfor the unfolding ukraine situation
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michael i've got to say i'm thoroughly
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confused about the demand story the
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lines are just uh competing where you're
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saying you're seeing pricing up single
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digit percentage versus pre-cover but
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then still talking about the need to
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stimulate with pricing in that first
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quarter
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are we getting into some price
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sensitivity here is that the issue
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i don't think so but i mean well i think
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the issue is we're seeing pricing
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slightly down pre-coded in q1 slight
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pricing at this point in time slightly
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up in q2
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so there's no doubt that there's strong
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peak demand
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but it's fragile you know as we're still
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building up forward bookings you know
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we're having the price down in q1 we're
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not having to price down in q2 but if
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there's another negative news flow event
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as we had with omicron at christmas or
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we had with ukraine at easter you know
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these numbers could change very quickly
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and that's why
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we're not able to give a full year
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guidance we do expect to be modestly
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profitable over the next 12 months it
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could be very profitable if everything
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goes well but it could be damaged in the
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way it was with omron and with ukraine
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if we get negative news though
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mike very good morning to you from
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stockholm look i'm looking at the
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disaster that parts of the industry are
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having on staffing i've seen changes
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that
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i can't comment on who i took to get
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here mike you know that
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but the fact of the matter is i i have
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looked at your funnily enough i have
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looked at your pricing for a trip to
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gothenburg uh later on and i have to say
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the prices are looking fruity so i don't
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know if it's just the roots i'm looking
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at but they look very firm to me but
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that wasn't my question my question's
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more about the cost that you're
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incurring and i was looking at the
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changes that delta have had to make in
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the united states to encourage more
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staff to get back in cabin crew i've
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looked at the problems ba have had and
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the other airlines have had just just
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explain to me how tough it is to get
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staff to keep staff and to train staff
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at the right kind of cost for your
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airline as well mike
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i i think there's no doubt that there
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are numerous staff pinch points you know
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particularly in the uk post brexit where
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you don't have that labor or market
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flexibility but you know we made a
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commitment during covert that we would
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keep everybody employed we kept
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everybody current so we were flying
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pilots and cabin crew sometimes you know
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we'd have a once a month just to keep
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them all current we haven't faced the
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same labor disruptions that easyjet wiz
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and ba have suffered for example here in
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europe but you know it it's still very
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tight over here we see very little labor
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market labor market disruption on
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continental europe we're hiring lots of
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people we're training lots of pilots
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lots of cabin crew no issues there are
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security pinch points though at airports
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where they're hiring kind of security
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baggage handlers check in there are
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pinch points at certain airport most
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notably uh berlin has been a particular
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has been a challenge but the uk is tough
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uh the uk labor market post brexit is
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very inflexible it is very difficult to
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get people uh to apply for jobs even in
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the likes of in the case of reiner we're
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paying well above hospitality well above
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retail um
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and i think it's just one another one of
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the damaging dividends that brexit but
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you know we are where we are all we've
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seen airlines like ba asia cancel
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flights uh through the summer because
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they're short staffed we don't yet we
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don't face that difficulty in ryanair
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but it's you know but it's something we
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manage on a daily basis
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yeah and i have to say i've done a lot
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of traveling so far this year and i
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would say
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london looks just awful to get in and
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out of at the moment and i don't know if
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that's the airport's authority problems
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or ba problem or whatever it is but real
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problems but i want to talk about the
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other major cost as well and mike i know
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you operate and are
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continuing to buy some of the most fuel
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efficient planes out there as well so
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kudos to ryanair for that as well but
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your aviation fuel costs must be
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absolutely through the roof as well just
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explain to us what your hedging policy
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looks like at the moment
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funnily enough see that we're in a very
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we're in very good shape on the fuel
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hedging you know we continue to hedge
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fuel right through uh covid at the
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moment we're 80 hedged out to march 2023
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at under 70 dollars a barrel so we've a
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huge advantage over almost every other
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airline we're competing with in europe
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because of the strong hedging position i
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i think there's no doubt though at the
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moment if there's continued uncertainty
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in ukraine and with energy uh supply
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we're facing higher oil prices into the
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summer of 2023 but it's more than 12
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months away what we can confirm now is
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that we will go through this summer very
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well hedged on fuel there will be no
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fuel surcharges in ryanair it is
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inevitable there's going to be fuel
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surcharges among the legacy airlines in
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europe this summer there won't be in
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reiner and i think that gives us a huge
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competitive advantage and it means we
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can continue to offer low fares into the
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post code recovery
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michael can i just get a line on boeing
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i know that you're catching up with them
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in a couple of weeks so what are you
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hoping to achieve here and and what sort
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of orders do you anticipate over coming
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years
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i i think you know we've been very
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disappointed with the performance of
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certainly on the commercial side boeing
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management the last 12 months i saw some
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commentary recently you know that boeing
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management has lost their way and i find
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it hard to disagree with those
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sentiments
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uh they've been late on the aircraft
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deliveries we've heard nothing from them
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on the max 10 despite the fact you know
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we we broke off the negotiations with
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them last september
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uh you know boeing need a management
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reboot certainly on the civilian on the
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aircraft civilian side uh they need to
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get some management in there that's
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going to resolve the the aircraft
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delivery delays
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and sort out the production challenges
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facing both not just the max but also
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the max 10 and the 787 as well
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hi i'm joanna burcetti and thank you for
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watching you can check out more of our
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