Ryanair Holdings Plc last week announced that it received a BBB+ rating (modified from A-) from Standard & Poor’s, making it the highest rated airline in the world.

It said the rating reflects the fundamental strength of its business model, which has a track record of high levels of profitability, superior cash generation and a very strong balance sheet with low levels of leverage.

Ryanair undertook the rating process as part of its plans to access capital markets to source secured and unsecured debt financing to buy 175 Boeing 737-800 planes.

Deputy chief executive Howard Millar said: “We are very pleased with the Standard & Poor’s rating of BBB+ (modified from A-), which makes Ryanair the highest rated airline in the world and reflects the financial strength of Ryanair’s business model.

“The successful achievement of this BBB+ rating is part of our plan to access the capital markets to finance the purchase of our 175 Boeing 737-800 order via both secured and unsecured debt offerings.

“The BBB+ rating will enable us to achieve lower cost financing to ensure that we continue to have the lowest costs and the lowest fares in Europe.”

Lufthansa group posts €1bn profit

Deutsche Lufthansa AG has achieved its target earnings, with an operating profit of €1.042 billion.

The group reported a 62 per cent year-on-year increase from €643 million the year before.

Lufthansa Group revenue was stable at €30bn (down from €30.1bn the previous year). At €313m, net profit for the year, which last year also included a profit of €631m from selling shares in Amadeus IT Holding, S.A., was lower, as expected.

Christoph Franz, executive board chairman and CEO of Deutsche Lufthansa AG, said: “We have strengthened the earnings power of the Lufthansa Group again last year. This is driven by the earnings performance in the passenger business, where all Airlines rose significantly.

“This performance trend is sustainable. It is based on a continuous improvement in the cost structure and on the billions invested in new products and services. Customer feedback is extremely positive,” he added.

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