Call me whatever you want, but IMO MOL is getting ahead of himself here.
Not the time to be paying deposits for long term purchases, airlines should be saving every penny they can. Fuel prices are low, no need to have more fuel efficient engines. Fleets are grounded and not building cycles, many used airframes available for cheaps.
Some opportunities are worth wasting.
I don't believe he is getting ahead of himself at all - he did something similar in the past. Everyone was cancelling orders at that time and he ordered at a steep discount and reaped the benefits. Ryanair should absolutely be taking advantage of the downturn, as should any airline that has good financials (which is probably limited to Ryanair and virtually nobody else). Ryanair also don't do used aircraft - which is similar to many low cost carriers.
Nice to see a differing opinion, but I'm with MOL on this one.
Ryanair have ok financials because they haven't been distributing their profits at will like many of their competitors.
However, right now they are burning about a billion a year.
More of an issue is the downward spiral that Ryanair was in. They ended 2019 with lower profits compared to previous years and 2020 wasn't looking particularly better.
I've been saying this for years: Ryanair was making strategic mistakes.
Expanding at higher cost airports while downsizing their low margin high volume routes, moving into a higher cost corporate HQ, going after business travel and high end leisure while walking away from the lower leisure ULCC segment that made Ryanair successful in the first place. Ryanair was on its way to becoming a pan-European legacy airline.
Very interestingly, they crawled back to the lower leisure segment for this winter to capture volume at negative margins.
With a completely changed post-covid landscape, an aggressive Wizzair, new ULCC competitors right and left, Ryanair may never be able to get out of the negative spiral they are in.
Buying new aircraft should be the least of their concerns right now.
Last but not least, Ryanair have ok financials, not good financials.
A big chunk of their assets are aircraft and aircraft valuations are very shaky right now.
The 10 billions or so in property and plants looks nice on their balance sheet, but that's what they paid for minus depreciation. If they were to liquidate their aircraft today, they'd probably get half if not less and end up being barely solvent. Of course, there is no reason to do so right now, but if we analyse it objectively, Ryanair's financials are only good on paper.https://www.investing.com/equities/ryanair-holdings