Air France-KLM has chosen to enter into exclusive negotiations with CFM International for the acquisition of LEAP-1A engines to power its new fleet of Airbus A320neo and A321neo.
This decision follows the Group’s order, announced last December, for 100 Airbus A320neo family aircraft - with purchase rights for 60 additional aircraft, to renew the fleets of KLM and Transavia Netherlands, and to renew and expand the fleet of Transavia France.
CFM International already provides engines to the Group for its Boeing 737 NG (CFM56-7B) and Airbus A320ceo (CFM56-5B) fleets.
Benjamin Smith, CEO of Air France-KLM said: “We look forward to working with CFM International in the coming weeks through these exclusive negotiations. We are confident that our two groups will be able to continue a long-term relationship and to build a sustainable future together.”
Ryanair updates FY22 guidance
Ryanair briefed the market this week that it expects to report a pre-exceptional FY22 (yr. ended 31 Mar. 2022) net loss of between -€350m and -€400m (previously guided range of -€250m to -€450m). Ryanair Group’s full-year traffic recovered strongly to over 97m (27.5m in FY21, but below pre-Covid traffic of 149m).
Ryanair’s balance sheet is one of the strongest in our sector with a BBB (stable) credit rating (S&P and Fitch). Year end (31 Mar.) net debt dropped to €1.5bn (prior year €2.3bn), and c.90% of the Group’s fleet of B737 aircraft are unencumbered.
Since its last market update on 31 Jan., Ryanair has increased FY23 (yr. ended 31 Mar. 2023) fuel hedging to 80% cover (c.65% jet swaps at $630 and 15% caps at $775 per metric tonne). Almost 10% of Ryanair’s H1 FY24 fuel requirements are hedged at $760 (via jet swaps).
