Freed from its debt, Ryanair sets sights on higher growth

The Irish carrier reports the repayment of its final EUR1.2bn bond as it gears up for a new phase of low-cost expansion. Today, its shares are up over 3% in trading in Dublin.

Ryanair has announced the repayment of its final €1.2bn bond on May 25, becoming "effectively debt-free" for the first time since its IPO in 1997. The group now boasts an unencumbered fleet of 620 Boeing 737 aircraft.

CFO Neil Sorahan says that this financial standing "further widens the cost gap" with competitors, many of whom remain dogged by long-term debt and expensive aircraft leasing contracts.

The group has also highlighted its BBB+ credit rating from Fitch Ratings and S&P Global Ratings, alongside a robust liquidity position.

Ryanair noted that the €1.2bn bond was issued during the Covid-19 crisis. The airline plans to return to the bond market "opportunistically" in the future to support its target of 300 million passengers p.a. by FY 2034, supported by up to 50 annual deliveries of Boeing MAX-10 aircraft starting in 2029.