Ryanair is now debt-free for the first time in 29 years

The Irish low-cost carrier has repaid its final €1.2 billion bond, giving it an unencumbered fleet of 620 aircraft and a significant cost advantage over indebted rivals.

Ryanair Holdings Plc is now effectively debt-free for the first time since its 1997 public listing, after repaying its final €1.2 billion bond on Monday. The move solidifies the airline's financial position and enhances its ability to offer low fares as competitors grapple with higher financing costs.

"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," Neil Sorahan, Ryanair's Chief Financial Officer, said in a statement. This financial strength, he added, "further widens the cost gap between Ryanair and our competitors, many of whom are exposed to expensive (long-term) debt and aircraft leases."

The unsecured eurobond was originally issued in May 2021 during the Covid-19 crisis. Its full repayment leaves the Dublin-based carrier with full ownership of its extensive fleet, a significant asset in the capital-intensive airline industry. The airline's stock (NASDAQ: RYAAY) has seen positive momentum, with its strong load factors and revenue growth standing out in a sector facing rising jet fuel costs.

Looking ahead, Ryanair plans to leverage its powerful balance sheet to fund ambitious growth, targeting 300 million passengers annually by fiscal year 2034. Sorahan noted that the company will look to "opportunistically" revisit the bond markets in the future to finance the delivery of up to 50 Boeing MAX-10 aircraft each year starting from 2029.

This article is for informational purposes only and does not constitute investment advice.