Photo: Shutterstock Ryanair has confirmed it has repaid its final €1.2 billion bond, leaving the airline effectively debt-free as it heads into a competitive summer season focused on low fares and growth.
Ryanair. Photo: ShutterstockThe repayment marks a major milestone for the carrier, which says it has not been in a debt-free position since it floated in 1997. The group now operates an unencumbered fleet of 620 Boeing 737 aircraft.
Ryanair Group CFO Neil Sorahan: “Today is a historic day for Ryanair as our Group, following repayment of our final €1.2bn bond, is now effectively debt free. Our fortress balance sheet is underpinned by an unencumbered B737 fleet of 620 aircraft, solid ratings (BBB+) from both Fitch Ratings and S&P and strong liquidity."
Sorahan added that the financial strength "further widens the cost gap" between the company and its competitors, "many of whom are exposed to expensive (long-term) debt and aircraft leases", allowing them to keep growing traffic "at much lower fares" than competitors.
"We raised this last remaining €1.2bn bond during the Covid crisis and we wish to sincerely thank our bond holders for their strong support over many years. We look forward to (opportunistically) revisiting the bond markets at some stage in the future as we grow passenger traffic to 300m p.a. by FY34 and take up to 50 Boeing MAX-10 deliveries annually from 2029 onward.,” the CFO added.