(Alliance News) - Ryanair Holdings PLC on Thursday raised its five-year traffic growth outlook, and is now targeting over 225 million passengers by 2026.
Shares in the Dublin-headquartered budget airline were 7.8% higher in London on Thursday morning at EUR16.55 each.
As part of this expected growth, Ryanair is expected to take delivery of 210 B737 Gamechanger aircraft over the next 5 years.
"These aircraft will deliver [some of the lowest costs in the industry], reduce emissions, and will enable Ryanair to accelerate its post-Covid growth, as opportunities open up at primary and secondary airports all over Europe, particularly where legacy carriers have failed or reduced fleet sizes as a result of Covid and State Aid," the airline added.
Chief Executive Michael O'Leary said: "The performance of the B737 Gamechanger aircraft this summer has exceeded our expectations. Operational reliability, fuel consumption, and lower CO2 emissions have so far exceeded guidelines with very positive passenger and crew feedback to these new, more fuel efficient, quieter aircraft."
"With these new deliveries, Ryanair will open 10 new bases across Europe this year as we work with airport partners to help them recover traffic & jobs post Covid, and take up slot opportunities that are being vacated by competitor airlines who have collapsed or significantly reduced their fleet sizes," he continued.
Ryanair now expects to deliver "more rapid traffic growth" over the next 5 years, and has raised its 5-year growth forecast to 50% from 33%.
As a result, Ryanair's pre-Covid traffic of 149 million is expected to grow to over 225 million guests by March 2026, which is 25 million passengers per annum higher than the previous target of 200 million.
O'Leary added: "The Covid-19 pandemic has delivered an unprecedented blow to Europe's aviation and tourism industries. Only Ryanair has used this crisis to place significantly increased aircraft orders, to expand our airport partnerships, and to secure lower operating costs so that we can pass on even lower fares to our guests, so that together with our airport partners, we can recover strongly from the Covid pandemic and deliver higher than expected growth in both traffic and jobs over the next 5 years."
By Paul McGowan; paulmcgowan@alliancenews.com
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