RYANAIR REPORTS Q3 NET
PROFIT OF €15M
YEAR TO DATE (9 MONTH)
PROFITS UP 39% TO €2.19BN
Ryanair Holdings today (29 Jan.)
reported a Q3 PAT of €15m, compared to a bumper prior year Q3 PAT
of €211m, as higher fuel costs offset revenue gains. While
traffic and fares were ahead of prior year, close-in Christmas/New
Year loads and yields were softer than previously expected as
Ryanair lowered prices in response to the sudden (but welcome)
removal of flights from OTA Pirate websites in early Dec. PAT
for the 9-months ended 31 Dec. 2023 was up 39% at €2.19bn (PY:
€1.58bn).
Q3 highlights:
·
Traffic grew 7% to 41.4m (LF down 1% to
92%).
·
Rev. per pax +9% (ave. fare +13% & ancil.
rev. +2%).
·
MSCI ESG rating upgraded from 'BBB' to 'A' in
Dec.
·
Fuel bill rose €320m (+35%) to €1.2bn.
·
136x B737 "Gamechangers" in total fleet of 574
aircraft at 31 Dec.
·
Fuel hedging extended to 65% of FY25 at $79bbl
saving €450m.
·
Interim div. of €0.175 per share announced
(payable 28 Feb.).
|
Q3 FY23
|
Q3 FY24
|
Change
|
YTD FY23
|
YTD FY24
|
Change
|
Customers
|
38.5m
|
41.4m
|
+7%
|
133.6m
|
146.8m
|
+10%
|
Load Factor
|
93%
|
92%
|
-1pt
|
94%
|
94%
|
-
|
Revenue
|
€2.31bn
|
€2.70bn
|
+17%
|
€8.93bn
|
€11.27bn
|
+26%
|
Op. Costs
|
€2.15bn1
|
€2.72bn
|
+26%
|
€7.13bn2
|
€8.88bn
|
+25%
|
PAT
|
€211m1
|
€15m
|
-93%
|
€1.58bn2
|
€2.19bn
|
+39%
|
Ryanair's Michael O'Leary,
said:
ENVIRONMENT:
"In Dec., MSCI upgraded Ryanair's
ESG rating to an industry leading 'A' (from 'BBB') and we remain
ranked Europe's No.1 airline for ESG by Sustainalytics. Our
new aircraft technology and increasing use of SAF has positioned
Ryanair as one of the EU's most environmentally efficient major
airlines. In Q3 we took delivery of 12, new B737-8200
"Gamechangers" (4% more
seats, 16% less fuel & CO2). We continue to
retro-fit winglets on our B737NG fleet (target 409 by 2026),
reducing fuel burn by 1.5% and cutting noise emissions by 6%.
We recently expanded our SAF partnerships with ENI to supply
Ryanair's Italian bases, and we remain on track to achieve our
Group's ambitious 2030 goal of powering 12.5% of Ryanair flights
with SAF (10% supply now secured).
In 2023 Europe suffered 67 days of
ATC strikes (13 times more than in 2022), forcing airlines to
cancel thousands of flights to/from Germany, Spain, Italy and the
UK while France in particular uses minimum service laws to protect
French local/domestic flights. We continue to call for urgent
reform of Europe's inefficient ATC system which would deliver the
most significant environmental improvement in EU air travel.
Sadly, there has been no action from the EU Commission. We
again call on President Ursula von der Leyen to defend the single
market for air travel by protecting 100% of overflights during
national ATC strikes, as is already the case in Greece, Italy and
Spain.
BOARD
UPDATES:
The Board recently announced that
Ms. Roberta Neri (an Italian Citizen) has agreed to join the Board
of Ryanair Holdings plc as a non-exec director from 1 Feb.
Roberta is a former CEO of Enav (the Italian air navigation service
provider) and has considerable aviation and renewables industry
experience.
Both Louise Phelan (SID) and
Michael Cawley have confirmed that they do not wish to seek
re-election at the 2024 AGM (in Sept.) and will step down from the
Board at that time. We thank them sincerely for their long
service. Róisín Brennan, who has significant PLC Board
experience (over 5 years on Ryanair's Board), has been appointed
senior independent director (SID) effective 1 Apr.
GROWTH &
FLEET:
At the end of Q3, Ryanair had
taken delivery of 136 B737 Gamechangers. We expect to have up
to 174 of these aircraft in our fleet by late June for peak S.24
(+50 from S.23), which would be 7 short of our contracted
deliveries. There remains a risk that some of these
deliveries could slip further. We've a bumper S.24 schedule
on sale with 169 new routes (total 2,600 routes), incl. our first
11 domestic routes in Morocco. While travel demand remains
high, we expect S.24 EU short haul capacity to be behind S.23 as
competitors ground A320 aircraft in Europe due to the P&W
engine issues (and expect these disruptions will run into
2026). We therefore encourage customers to book early
on www.ryanair.com
to secure the lowest fares for S.24 before they
sell out.
We continue to work closely with
Boeing to minimise delivery delays and improve quality control in
both Wichita and Seattle. While the recent MAX-9 grounding
was a disappointing setback, we don't expect it to affect the MAX-8
fleet or the MAX-10 certification. We visited Seattle in Jan.
and met with Boeing senior management. Boeing are increasing
their QA resources in Wichita and Seattle. We have run extra
checks on our recent B737 deliveries and have noted improvements in
quality with fewer delivery defects. However, Boeing have
more work to do to improve quality, reduce delivery delays, and we
fully support the initiatives that Dave Calhoun (CEO) and Brian
West (CFO) are taking to improve Boeing's performance and
production.
We have reached agreement with SAP
Concur to integrate their on-line travel tool with Ryanair's
website. Corporate customers who book directly with Ryanair
via Concur can now benefit from significant efficiencies (incl.
automated expense & invoice management) in their booking and
admin. process. This, coupled with our low fares and high
reliability improves our offering to business travellers. We
also welcome the recent agreements with Love Holidays and Kiwi
(OTAs), which will see their customers book flights directly on the
Ryanair.com website, but without inflating Ryanair prices for seats
or ancillary products, thereby greatly improving the customer
service offering available to both Love Holidays and Kiwi
customers.
We expect Europe's airlines will
continue to consolidate over the next 3 years, with the takeover of
ITA (Italy) and Air Europa (Spain), as well as the sale of TAP
(Portugal) and SAS (Scandinavia) already underway. This, in
addition to A320 fleet groundings due to the P&W engine issues
and the large backlog of OEM aircraft deliveries is likely to
constrain short haul capacity in Europe for the next 3 years.
These capacity constraints, combined with our significant cost
advantage (incl. FY25 fuel savings), strong balance sheet, low-cost
aircraft orders and industry leading resilience, will (we believe)
underpin a decade of profitable growth opportunities for Ryanair as
we expand our traffic to 300m pax p.a. by
FY34.
Q3 FY24 BUSINESS
REVIEW:
Revenue &
Costs
Q3 scheduled revenues increased
21% to €1.75bn. Traffic grew 7% to 41.4m while ave. fares
rose 13% to over €42, thanks to a strong Oct. mid-term and peak
Christmas/New Year travel (albeit that close-in loads and fares
were softer than originally expected due to the sudden removal of
Ryanair flights from many OTA Pirate websites in early Dec.).
Ancillary revenue increased 10% to €0.95bn (c.€23 per
passenger). Total Q3 revenue rose 17% to €2.7bn.
Operating costs increased 26% to €2.7bn, primarily due to a 35%
increase in fuel costs, higher staff costs (reflecting pay
restoration, crew, engineering & handler pay increases and
higher crewing ratios as we improve ops. resilience) and the
earlier timing of maintenance. The widening cost gap between
Ryanair and all our EU competitors (which is further enhanced by
Ryanair's low-cost financing and net interest income) remains a
growing competitive advantage.
Our Q4 fuel is almost 94% hedged
at approx. $89bbl (a mix of forwards and caps) and FY25 hedging has
increased to 65% at approx. $79bbl. Almost 90% of Q4 €/$ opex
is hedged at 1.09 and over 70% of FY25 is hedged at 1.11.
This strong hedge position protects us from current fuel price
volatility and delivers approx. €450m savings on fuel already
hedged for FY25.
Balance Sheet &
Liquidity
Ryanair's balance sheet is one of
the strongest in the industry with a BBB+ credit rating (both
S&P and Fitch) and €2.9bn gross cash at quarter end, despite
€1.9bn capex and €1.1bn debt repayments. Net cash was €0.15bn
at 31 Dec., boosted somewhat by the delay of aircraft deliveries
into Q4. All of our owned B737 fleet (546 aircraft) are
unencumbered, which widens our cost advantage over competitor
airlines, many of whom are exposed to high interest rates and
rising aircraft lease costs. In Nov. the Board announced the
Group's new Dividend Policy, under which an interim dividend of
€0.175 per share will be paid on 28 Feb.
OUTLOOK:
We continue to target approx.
183.5m FY24 traffic (+9%), despite slightly lower Q3 load factors
and Boeing delivery delays. As a result of these lower load
factors and higher productivity pay (recently agreed with various
pilot unions incl. Belgium, Italy & the UK) to improve
operational resilience, we now expect FY24 ex-fuel unit costs to
rise by c.€2.50, which still widens the cost gap between Ryanair
and our main European competitor airlines. Q4, which is
traditionally our weakest quarter, will also be impacted by the
partial unwind of free ETS carbon credits (from 1 Jan.).
While we will benefit from the first half of Easter traffic falling
in late Mar., this is unlikely to fully offset the weaker than
previously expected load factors and yields in late Q3 and early
Q4. We are therefore narrowing our FY24 PAT guidance to a
range of between €1.85bn to €1.95bn (previously €1.85bn to
€2.05bn). This guidance and the full year result remains
heavily dependent upon avoiding unforeseen adverse events in Q4
(such as the Ukraine war, the Israel-Hamas conflict and further
Boeing delivery delays)."
ENDS
For further information
please contact:
Ryanair Holdings plc, Europe's largest airline group, is the
parent company of Buzz, Lauda, Malta Air, Ryanair & Ryanair UK.
Carrying up to 183.5m guests p.a. on over 3,600 daily flights from
94 bases, the Group connects almost 235 airports in 37 countries on
a fleet of 574 aircraft, with c.374 Boeing 737s on order, which
will enable the Ryanair Group to grow traffic to 300m p.a. by FY34.
Ryanair has a team of over 25,000 highly skilled aviation
professionals delivering Europe's No.1 operational performance, and
an industry leading 38-year safety record. Ryanair is one of the
most efficient major EU airlines. With a young fleet and high
load factors, Ryanair's CO2 per pax/km is just 65
grams.
|
|
www.ryanair.com |
Neil Sorahan
Ryanair Holdings plc
Tel: +353-1-9451212
|
Paul Clifford
Drury
Tel: +353-1-260-5000
|
Notes:
1. Non-IFRS financial measure, excl.
€9m except. unrealised mark-to-market loss (timing unwind) on jet
fuel caps.
2. Non-IFRS financial measure, excl.
€116m except. unrealised mark-to-market loss (timing unwind) on jet
fuel caps.
Certain of the information
included in this release is forward looking and is subject to
important risks and uncertainties that could cause actual results
to differ materially. It is not reasonably possible to
itemise all of the many factors and specific events that could
affect the outlook and results of an airline operating in the
European economy. Among the factors that are subject to
change and could significantly impact Ryanair's expected results
are the airline pricing environment, fuel costs, competition from
new and existing carriers, market prices for the replacement of
aircraft, costs associated with environmental, safety and security
measures, actions of the Irish, U.K., European Union ("EU") and
other governments and their respective regulatory agencies,
post-Brexit uncertainties, weather related disruptions, ATC strikes
and staffing related disruptions, delays in the delivery of
contracted aircraft, fluctuations in currency exchange rates and
interest rates, airport access and charges, labour relations, the
economic environment of the airline industry, the general economic
environment in Ireland, the U.K. and Continental Europe, the
general willingness of passengers to travel and other economics,
social and political factors, global pandemics such as Covid-19 and
unforeseen security events.
Notes to
Editor
OTA
UPDATE:
Ryanair has for many years made its
low fares and ancillary services freely available to
honest/transparent price comparison websites like Google Flights.
These partners do not inflate Ryanair's prices and the customer
"clicks through" to the Ryanair.com website to make their bookings
and secure Ryanair's low prices.
We have also, for many years,
fought a running battle with a number of unscrupulous OTA Pirates
who use screenscraping bots to digitally pirate our flight info.,
prices and ancillary services, then repackage this unlawfully
obtained info. via their websites to consumers whom they overcharge
and scam with hidden mark-ups on air fares and ancillary services,
and also with invented fees for non-existent services (such as
"flexible" or "refundable" fares). These Pirates damage Ryanair's
brand by overcharging consumers and harm consumers by inflating
Ryanair's prices. They then make bookings using virtual credit
cards mass-produced in off-shore locations in order to hack the
Ryanair website's technical defences, which obstructs Ryanair from
making refunds to customers. They also prevent Ryanair from
contacting customers directly by using fake email
addresses.
In early Dec., many of these OTA
Pirates removed Ryanair flights from sale on their websites. While
damaging to our bookings and fares in the very short term, we
welcomed this development as it brought a welcome respite to
consumers from the overcharging practices of these OTAs.
In mid Dec., we received approaches
from some of the bigger OTAs seeking to "partner" directly with
Ryanair on similar terms to the transparent price comparison
websites. We are very happy to have reached agreement with our
first 2 approved OTA partners - Loveholidays.com and Kiwi.com. Both
of these OTAs will now receive a direct feed from the Ryanair.com
website thereby eliminating unlicenced screenscraping or digital
piracy. They will be able to offer their customers real Ryanair
fares and ancillary services, and they agree to not add any
mark-ups to our fares or any ancillary service fees, which
guarantees their customers the best Ryanair prices. All bookings
will be completed directly on Ryanair.com using customers' real
contact details so that Ryanair can send each customer email
notifications related to their flights, including important
security info., and in the rare case of cancellations, ensure that
customer get their full refunds.
These approved OTA partnerships can
end OTA Piracy, protect consumers from overcharges and ensure that
Ryanair's real air fares and ancillary services are always sold to
passengers in all markets, which preserves Ryanair's low fare brand
and our price advantage over all other airlines in Europe. We will
continue to work closely with like-minded OTA partners such as
Loveholidays and Kiwi to provide real value for consumers even
while we continue to pursue all remaining OTA Pirates like On the
Beach, Lastminute.com, eDreams, Opodo and Booking.com, until we end
their digital piracy and their overcharging and scamming of
unsuspecting consumers.
Ryanair Holdings plc and Subsidiaries
Condensed Consolidated
Interim Income Statement for the Nine Months Ended December 31,
2023 (unaudited)
|
|
|
Pre-
Except.
|
IFRS
Nine Months
Ended
Dec 31,
|
Pre-Except.
Nine
Months
Ended
Dec
31,
|
Except.
Nine
Months
Ended
Dec
31,
|
IFRS
Nine
Months
Ended
Dec
31,
|
|
|
|
Change
|
2023
|
2022
|
2022
|
2022
|
|
|
Note
|
%*
|
€M
|
€M
|
€M
|
€M
|
Operating revenues
|
|
|
|
|
|
|
|
Scheduled revenues
|
|
+33%
|
7,823.1
|
5,871.4
|
-
|
5,871.4
|
|
Ancillary revenues
|
|
+13%
|
3,450.8
|
3,056.8
|
-
|
3,056.8
|
Total operating revenues
|
7
|
+26%
|
11,273.9
|
8,928.2
|
-
|
8,928.2
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
|
|
|
|
|
Fuel and oil
|
|
-31%
|
4,038.7
|
3,081.9
|
133.0
|
3,214.9
|
|
Airport and handling
charges
|
|
-21%
|
1,184.6
|
979.4
|
-
|
979.4
|
|
Staff costs
|
|
-28%
|
1,125.1
|
876.7
|
-
|
876.7
|
|
Depreciation
|
|
-23%
|
822.2
|
665.8
|
-
|
665.8
|
|
Route charges
|
|
-13%
|
798.8
|
703.9
|
-
|
703.9
|
|
Marketing, distribution and
other
|
|
-13%
|
595.1
|
527.5
|
-
|
527.5
|
|
Maintenance, materials and
repairs
|
|
-7%
|
312.5
|
293.1
|
-
|
293.1
|
Total operating expenses
|
|
-25%
|
8,877.0
|
7,128.3
|
133.0
|
7,261.3
|
|
|
|
|
|
|
|
|
Operating profit/(loss)
|
|
+33%
|
2,396.9
|
1,799.9
|
(133.0)
|
1,666.9
|
|
|
|
|
|
|
|
Other income/(expenses)
|
|
|
|
|
|
|
|
Net finance
income/(expense)
|
|
|
47.6
|
(42.1)
|
-
|
(42.1)
|
|
Foreign exchange
|
|
|
16.7
|
10.8
|
-
|
10.8
|
Total other income/(expenses)
|
|
|
64.3
|
(31.3)
|
-
|
(31.3)
|
|
|
|
|
|
|
|
|
Profit/(loss) before tax
|
|
+39%
|
2,461.2
|
1,768.6
|
(133.0)
|
1,635.6
|
|
|
|
|
|
|
|
|
|
Tax (expense)/credit
|
4
|
|
(268.3)
|
(186.7)
|
16.6
|
(170.1)
|
|
|
|
|
|
|
|
|
Profit/(loss) for the nine months - all attributable to equity
holders of parent
|
+39%
|
2,192.9
|
1,581.9
|
(116.4)
|
1,465.5
|
|
|
|
|
|
|
|
|
|
Earnings per ordinary share
(€)
|
|
|
|
|
|
|
|
Basic
|
|
|
1.9253
|
|
|
1.2899
|
|
Diluted
|
|
|
1.9162
|
|
|
1.2874
|
|
Weighted avg. no. of ord. shares
(in Ms)
|
|
|
|
|
|
|
|
Basic
|
|
|
1,139.0
|
|
|
1,136.1
|
|
Diluted
|
|
|
1,144.4
|
|
|
1,138.3
|
|
|
|
|
|
|
|
| |
|
*'+' is favourable and '-' is adverse
period-on-period.
Ryanair Holdings plc and Subsidiaries
Condensed Consolidated
Interim Income Statement for the Quarter Ended December 31, 2023
(unaudited)
|
|
|
|
|
IFRS
|
Pre-Except.
|
Except.
|
IFRS
|
|
|
|
|
Quarter
|
Quarter
|
Quarter
|
Quarter
|
|
|
|
Pre-
|
Ended
|
Ended
|
Ended
|
Ended
|
|
|
|
Except.
Change
|
Dec 31,
2023
|
Dec
31,
2022
|
Dec
31,
2022
|
Dec
31,
2022
|
|
|
Note
|
%*
|
€M
|
€M
|
€M
|
€M
|
Operating revenues
|
|
|
|
|
|
|
|
Scheduled revenues
|
|
+21%
|
1,749.2
|
1,446.6
|
-
|
1,446.6
|
|
Ancillary revenues
|
|
+10%
|
949.5
|
865.5
|
-
|
865.5
|
Total operating revenues
|
7
|
+17%
|
2,698.7
|
2,312.1
|
-
|
2,312.1
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
|
|
|
|
|
Fuel and oil
|
|
-35%
|
1,224.1
|
904.8
|
10.3
|
915.1
|
|
Staff costs
|
|
-30%
|
382.2
|
293.0
|
-
|
293.0
|
|
Airport and handling
charges
|
|
-14%
|
326.4
|
286.5
|
-
|
286.5
|
|
Depreciation
|
|
-24%
|
263.4
|
212.7
|
-
|
212.7
|
|
Route charges
|
|
-18%
|
236.9
|
200.5
|
-
|
200.5
|
|
Marketing, distribution and
other
|
|
+3%
|
154.6
|
160.1
|
-
|
160.1
|
|
Maintenance, materials and
repairs
|
|
-40%
|
130.0
|
92.8
|
-
|
92.8
|
Total operating expenses
|
|
-26%
|
2,717.6
|
2,150.4
|
10.3
|
2,160.7
|
|
|
|
|
|
|
|
|
Operating (loss)/profit
|
|
-112%
|
(18.9)
|
161.7
|
(10.3)
|
151.4
|
|
|
|
|
|
|
|
Other income/(expenses)
|
|
|
|
|
|
|
|
Net finance
income/(expense)
|
|
|
15.8
|
(5.9)
|
-
|
(5.9)
|
|
Foreign exchange
|
|
|
5.8
|
67.3
|
-
|
67.3
|
Total other income/(expenses)
|
|
|
21.6
|
61.4
|
-
|
61.4
|
|
|
|
|
|
|
|
|
Profit/(loss) before tax
|
|
-99%
|
2.7
|
223.1
|
(10.3)
|
212.8
|
|
|
|
|
|
|
|
|
|
Tax credit/(expense)
|
|
|
12.1
|
(12.0)
|
1.3
|
(10.7)
|
|
|
|
|
|
|
|
|
Profit/(loss) for the quarter - attributable to equity holders
of parent
|
|
-93%
|
14.8
|
211.1
|
(9.0)
|
202.1
|
|
|
|
|
|
|
|
|
|
Earnings per ordinary share
(€)
|
|
|
|
|
|
|
|
Basic
|
|
|
0.0130
|
|
|
0.1776
|
|
Diluted
|
|
|
0.0129
|
|
|
0.1773
|
|
Weighted avg. no. ord. shares (in
Ms)
|
|
|
|
|
|
|
|
Basic
|
|
|
1,139.3
|
|
|
1,138.0
|
|
Diluted
|
|
|
1,145.1
|
|
|
1,139.7
|
|
|
*'+' is favourable and '-' is adverse
period-on-period.
Ryanair Holdings plc and Subsidiaries
Condensed Consolidated
Interim Statement of Comprehensive Income for Nine Months Ended
December 31, 2023 (unaudited)
|
Nine Months
|
Nine
Months
|
|
Ended
|
Ended
|
|
Dec 31,
|
Dec
31,
|
2023
|
2022
|
|
€M
|
€M
|
|
|
|
Profit for the nine months
|
2,192.9
|
1,465.5
|
|
|
|
Other comprehensive income/(loss):
|
|
|
Items that are or may be
reclassified subsequently to profit or loss:
|
|
|
Movements in hedging reserve, net of tax:
|
|
|
Net movement in cash-flow hedge
reserve
|
12.1
|
(761.5)
|
Other comprehensive income/(loss) for the nine months, net of
income tax
|
12.1
|
(761.5)
|
Total comprehensive income for the nine months - attributable
to equity holders of parent
|
|
|
2,205.0
|
704.0
|
Ryanair Holdings plc and Subsidiaries
Condensed Consolidated
Interim Statement of Comprehensive Income for Quarter Ended
December 31, 2023 (unaudited)
|
Quarter
|
Quarter
|
|
Ended
|
Ended
|
|
Dec 31,
|
Dec
31,
|
2023
|
2022
|
|
€M
|
€M
|
|
|
|
Profit for the quarter
|
14.8
|
202.1
|
|
|
|
Other comprehensive (loss):
|
|
|
Items that are or may be
reclassified subsequently to profit or loss:
|
|
|
Movements in hedging reserve, net of tax:
|
|
|
Net movement in cash-flow hedge
reserve
|
(582.5)
|
(591.3)
|
Other comprehensive (loss) for the quarter, net of income
tax
|
(582.5)
|
(591.3)
|
Total comprehensive (loss) for the quarter - attributable to
equity holders of parent
|
|
|
(567.7)
|
(389.2)
|
Ryanair Holdings plc and Subsidiaries
Condensed Consolidated
Interim Statement of Cash Flows for the Nine Months Ended December
31, 2023 (unaudited)
|
|
|
Nine Months
|
Nine
Months
|
|
|
|
|
Ended
|
Ended
|
|
|
|
|
Dec 31,
|
Dec
31,
|
|
|
2023
|
2022
|
|
|
|
Note
|
€M
|
€M
|
|
Operating activities
|
|
|
|
|
|
Profit after tax
|
|
2,192.9
|
1,465.5
|
|
|
|
|
|
|
|
Adjustments to reconcile
profit after tax to net cash from operating
activities
|
|
|
|
|
|
Depreciation
|
|
822.2
|
665.8
|
|
|
(Increase) in inventories
|
|
(0.2)
|
(0.2)
|
|
|
Tax expense
|
|
268.3
|
170.1
|
|
|
Share based payments
|
|
9.9
|
11.3
|
|
|
(Increase)/decrease in trade
receivables
|
|
(16.8)
|
4.7
|
|
|
(Increase) in other assets
|
|
(231.5)
|
(420.6)
|
|
|
(Decrease) in trade
payables
|
|
(81.6)
|
(22.6)
|
|
|
(Decrease) in accrued expenses and
other liabilities
|
|
(1,661.3)
|
(376.1)
|
|
|
(Decrease)/increase in
provisions
|
|
(0.4)
|
60.1
|
|
|
Increase in finance income
|
|
2.2
|
7.3
|
|
|
(Increase)/decrease in finance
expense
|
|
(5.3)
|
4.7
|
|
|
Foreign exchange and fair
value*
|
|
24.4
|
147.2
|
|
|
Income tax (paid)/received
|
|
(37.1)
|
1.8
|
|
Net
cash inflow from operating activities
|
|
1,285.7
|
1,719.0
|
|
|
|
|
|
|
|
Investing activities
|
|
|
|
|
|
Capital expenditure - purchase of
property, plant and equipment
|
|
(1,933.6)
|
(1,270.5)
|
|
|
Disposal proceeds
|
|
-
|
4.9
|
|
|
Supplier reimbursements
|
|
-
|
127.5
|
|
|
Net (increase) in restricted
cash
|
|
(1.3)
|
-
|
|
|
Decrease/(increase) in financial
assets: cash > 3 months
|
|
676.7
|
(834.9)
|
|
Net
cash used in investing activities
|
|
(1,258.2)
|
(1,973.0)
|
|
|
|
|
|
|
|
Financing activities
|
|
|
|
|
|
Net proceeds from shares
issued
|
11
|
13.6
|
31.7
|
|
|
Repayment of borrowings
|
|
(1,080.7)
|
(144.3)
|
|
|
Lease liabilities paid
|
|
(33.5)
|
(35.5)
|
|
Net
cash used in financing activities
|
|
(1,100.6)
|
(148.1)
|
|
|
|
|
|
|
|
Decrease in cash and cash equivalents
|
|
(1,073.1)
|
(402.1)
|
|
|
Net foreign exchange
differences
|
|
(7.6)
|
12.6
|
|
|
Cash and cash equivalents at
beginning of the period
|
|
3,599.3
|
2,669.0
|
|
Cash
and cash equivalents at end of the period
|
10
|
2,518.6
|
2,279.5
|
|
|
|
|
|
|
Included in the cash flows from operating activities for the
nine months are the following amounts:
|
|
|
|
|
Interest income received
|
|
111.9
|
22.7
|
|
Interest expense paid
|
|
(76.9)
|
(59.5)
|
|
*The nine months ended December
31, 2022, includes an exceptional loss of €133.0M pre-tax,
attributable to the fair value measurement of jet fuel call
options.
Ryanair Holdings plc and Subsidiaries
Condensed Consolidated
Interim Statement of Changes in Shareholders' Equity for the Nine
Months Ended December 31, 2023 (unaudited)
|
|
|
|
|
|
|
|
|
|
|
Issued
|
Share
|
Other
|
|
Other
|
|
|
|
Ordinary
|
Share
|
Premium
|
Undenom.
|
Retained
|
Reserves
|
Other
|
|
|
Shares
|
Capital
|
Account
|
Capital
|
Earnings
|
Hedging
|
Reserves
|
Total
|
|
M
|
€M
|
€M
|
€M
|
€M
|
€M
|
€M
|
€M
|
|
|
|
|
|
|
|
|
|
Balance at March 31, 2022
|
1,134.6
|
6.8
|
1,328.2
|
3.5
|
2,880.9
|
1,295.4
|
30.5
|
5,545.3
|
Profit for the nine
months
|
-
|
-
|
-
|
-
|
1,465.5
|
-
|
-
|
1,465.5
|
Other comprehensive income/(loss)
|
|
|
|
|
|
|
|
|
Net movements in cash flow
reserve
|
-
|
-
|
-
|
-
|
-
|
(761.5)
|
-
|
(761.5)
|
Total other comprehensive
(loss)
|
-
|
-
|
-
|
-
|
-
|
(761.5)
|
-
|
(761.5)
|
Total comprehensive
income/(loss)
|
-
|
-
|
-
|
-
|
1,465.5
|
(761.5)
|
-
|
704.0
|
Transactions with owners of the Company recognised directly in
equity
|
|
|
|
|
|
|
|
|
Issue of ordinary equity
shares
|
4.1
|
0.1
|
51.6
|
-
|
(20.0)
|
-
|
-
|
31.7
|
Share-based payments
|
-
|
-
|
-
|
-
|
-
|
-
|
11.3
|
11.3
|
Transfer of exercised and expired
share-based awards
|
-
|
-
|
-
|
-
|
5.4
|
-
|
(5.4)
|
-
|
Balance at December 31, 2022
|
1,138.7
|
6.9
|
1,379.8
|
3.5
|
4,331.8
|
533.9
|
36.4
|
6,292.3
|
(Loss) for the quarter
|
-
|
-
|
-
|
-
|
(151.7)
|
-
|
-
|
(151.7)
|
Other comprehensive loss
|
|
|
|
|
|
|
|
|
Net movements in cash-flow
reserve
|
-
|
-
|
-
|
-
|
-
|
(502.5)
|
-
|
(502.5)
|
Total other comprehensive
(loss)
|
-
|
-
|
-
|
-
|
-
|
(502.5)
|
-
|
(502.5)
|
Total comprehensive
(loss)
|
-
|
-
|
-
|
-
|
(151.7)
|
(502.5)
|
-
|
(654.2)
|
Transactions with owners of the Company recognised directly in
equity
|
|
|
|
|
|
|
|
|
Issue of ordinary equity
shares
|
-
|
-
|
0.1
|
-
|
(0.1)
|
-
|
-
|
-
|
Share-based payments
|
-
|
-
|
-
|
-
|
-
|
-
|
4.9
|
4.9
|
Transfer of exercised and expired
share-based awards
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Balance at March 31, 2023
|
1,138.7
|
6.9
|
1,379.9
|
3.5
|
4,180.0
|
31.4
|
41.3
|
5,643.0
|
Profit for the nine
months
|
-
|
-
|
-
|
-
|
2,192.9
|
-
|
-
|
2,192.9
|
Other comprehensive income
|
|
|
|
|
|
|
|
|
Net movements in cash flow
reserve
|
-
|
-
|
-
|
-
|
-
|
12.1
|
-
|
12.1
|
Total other comprehensive
income
|
-
|
-
|
-
|
-
|
-
|
12.1
|
-
|
12.1
|
Total comprehensive
income
|
-
|
-
|
-
|
-
|
2,192.9
|
12.1
|
-
|
2,205.0
|
Transactions with owners of the Company recognised directly in
equity
|
|
|
|
|
|
|
|
|
Issue of ordinary equity
shares
|
1.1
|
-
|
19.7
|
-
|
(6.1)
|
-
|
-
|
13.6
|
Share-based payments
|
-
|
-
|
-
|
-
|
-
|
-
|
9.9
|
9.9
|
Transfer of exercised and expired
share-based awards
|
-
|
-
|
-
|
-
|
3.0
|
-
|
(3.0)
|
-
|
Balance at December 31, 2023
|
1,139.8
|
6.9
|
1,399.6
|
3.5
|
6,369.8
|
43.5
|
48.2
|
7,871.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Ryanair Holdings plc and Subsidiaries
MD&A Nine Months Ended December 31, 2023 ("FY24
YTD")
Introduction
For the purposes of the Management
Discussion and Analysis ("MD&A") (with the exception of the
balance sheet commentary) all figures and comments are by reference
to the nine months ended December 31, 2023 results excluding the
exceptional item referred to below.
The Group, as part of its risk
management strategy, utilised jet fuel call options to set a
maximum price for approximately 16% of FY23 expected fuel
requirements. These instruments were measured at fair value through
the income statement. Following the Russian invasion of Ukraine in
Feb. 2022, the price of jet fuel significantly increased. An
exceptional unrealised mark-to-market loss of €133M (pre-tax) was
recorded on the Group's jet fuel call options at December 31,
2022.
Income
Statement
Scheduled revenues:
Scheduled revenues increased
33% to €7.82BN due to 10% traffic growth
(from 133.6M to
146.8M) and a 21% increase
in average fares to over €53.
Ancillary revenues:
Ancillary revenues increased
13% to €3.45BN as traffic grew (up 10%) and
spend on discretionary services such as priority boarding, reserved
seating and inflight sales increased to just over €23.50 per
passenger.
Total revenues:
As a result of the above, total
revenues increased 26% to
€11.27BN.
Operating Expenses:
Fuel and oil:
Fuel and oil rose 31% to
€4.04BN due to a 9% increase in sectors flown and
significantly higher jet fuel prices offset by fuel burn savings on
the new B737-8200 "Gamechanger" aircraft.
Airport and handling charges:
Airport and handling charges rose
21% to €1.18BN, due to 10%
traffic growth, higher ground ATC and handling rates, and
termination of temporary Covid reliefs (included in the prior
period comparative).
Staff costs:
Staff costs increased 28% to €1.13BN due to the larger fleet,
9% higher sectors, investment in operational resilience with higher
crewing ratios, restoration of Covid-19 pay reductions and crew
productivity pay increases implemented.
Depreciation:
Depreciation increased 23% to €822M, primarily due to higher
amortisation resulting from higher aircraft utilisation (flight
hours up 9%), the delivery of 52 new "Gamechanger" aircraft and
increased depreciation on capitalised maintenance for leased A320
aircraft (24 leases were extended in Q2 FY23). There is a partial
timing offset in maintenance, materials and repairs below, arising
from the extension of A320 leases in FY23.
Route charges:
Route charges increased
13% to €799M, due to the 9%
increase in flight hours and higher Eurocontrol rates.
Marketing, distribution and other:
Marketing, distribution and other
rose 13% to €595M due to
higher activity in the period (including increased credit card
transactions and higher inflight sales) and increased EU261 and
right to care passenger compensation due to delays primarily
arising from the knock-on effect of ATC related disruptions
(including the NATS system failure in August, and a record number
of French ATC strikes).
Maintenance, materials and repairs:
Maintenance, materials and repairs
increased 7% to €313M due
to the early timing of aircraft checks from Q4, higher utilisation,
engineering pay increases and A320 lease handback costs. There is a
partial timing offset in depreciation above, arising from the
extension of A320 leases in FY23.
Other income/(expense):
Net finance income was positive at
€48M due to higher deposit
interest rates, lower gross debt, and a net cash position
throughout the period. Foreign exchange translation reflects the
impact of €/US$ exchange rate movements on balance sheet
revaluations.
Balance sheet:
Gross cash decreased by just
€1.76BN to €2.92BN at
December 31, 2023 despite €1.9BN capex and over €1BN debt
repayments. Gross debt reduced by €1.34BN and net cash, as a
result, was €0.15BN at
December 31, 2023 (€0.56BN at March 31, 2023).
Shareholders' equity:
Shareholders' equity increased by
€2.23BN to €7.87BN in the period primarily due to
a €2.19BN net
profit.
Ryanair Holdings plc and Subsidiaries
MD&A Quarter Ended December 31, 2023 ("Q3
FY24")
Introduction
For the purposes of the Management
Discussion and Analysis ("MD&A") all figures and comments are
by reference to the quarter ended December 31, 2023 results
excluding the exceptional item referred to below.
The Group, as part of its risk
management strategy, utilised jet fuel call options to set a
maximum price for approximately 16% of FY23 expected fuel
requirements. These instruments were measured at fair value through
the income statement. Following the Russian invasion of Ukraine in
Feb. 2022, the price of jet fuel significantly increased. An
exceptional unrealised mark-to-market loss of €10M (pre-tax) was
recorded on the Group's jet fuel call options in the quarter ended
December 31, 2022.
Income
Statement
Scheduled revenues:
Scheduled revenues increased
21% to €1.75BN due to 7% traffic growth
(from 38.5M to 41.4M) and a 13% increase in average
fares to over €42.
Ancillary revenues:
Ancillary revenues increased
10% to €0.95BN as traffic grew (up 7%) and
spend on discretionary services such as priority boarding, reserved
seating and inflight sales increased to almost €23 per
passenger.
Total revenues:
As a result of the above, total
revenues increased 17% to
€2.70BN.
Operating Expenses:
Fuel and oil:
Fuel and oil rose 35% to €1.22BN due to an 8% increase in
sectors flown and significantly higher jet fuel prices offset by
fuel burn savings on the new B737-8200 "Gamechanger"
aircraft.
Staff costs:
Staff costs increased 30% to €382M due to the larger fleet,
8% higher sectors, investment in operational resilience with higher
crewing ratios, restoration of Covid-19 pay reductions and crew
productivity pay increases implemented.
Airport and handling charges:
Airport and handling charges rose
14% to €326M, due to 7%
traffic growth, higher ground ATC and handling rates, and
termination of temporary Covid reliefs (included in the prior
period comparative).
Depreciation:
Depreciation increased 24% to €263M, primarily due to higher
amortisation resulting from higher aircraft utilisation (flight
hours up 9%), the delivery of 52 new "Gamechanger" aircraft and
increased depreciation on capitalised maintenance for leased A320
aircraft (24 leases were extended in Q2 FY23). There is a partial
timing offset in maintenance, materials and repairs below, arising
from the extension of A320 leases in FY23.
Route charges:
Route charges increased
18% to €237M, due to 9%
increase in flight hours and higher Eurocontrol rates.
Marketing, distribution and other:
Marketing, distribution and other
dropped marginally (€5M) to
€155M due to lower marketing and other expenses.
Maintenance, materials and repairs:
Maintenance, materials and repairs
increased 40% to €130M due
to the timing of aircraft checks from Q4, higher utilisation,
engineering pay increases and A320 lease handback costs. There is a
partial timing offset in depreciation above, arising from the
extension of A320 leases in FY23.
Other
income/(expense):
Net finance income was positive at
€16M due to higher deposit
interest rates, lower gross debt and a net cash position throughout
the period. Foreign exchange translation reflects the impact of
€/US$ exchange rate movements on balance sheet
revaluations.
Ryanair Holdings plc and
Subsidiaries
Interim Management
Report
Introduction
This financial report for the nine
months ended December 31, 2023 meets the reporting requirements
pursuant to the Transparency (Directive 2004/109/EC) Regulations
2007 and the Central Bank (Investment Market Conduct) Rules
2019.
This interim management report
includes the following:
· Principal
risks and uncertainties relating to the remaining three months of
the year;
· Related
party transactions; and
· Post
balance sheet events.
Results of operations for the nine
month period ended December 31, 2023 compared to the nine-month
period ended December 31, 2022, including important events that
occurred during the nine months, are set forth above in the
MD&A.
Principal risks and uncertainties for the remainder of the
year
Jet fuel is subject to wide price
fluctuations as a result of many economic and political factors and
events occurring throughout the world that Ryanair can neither
control nor accurately predict, including increases in demand,
sudden disruptions in supply and other concerns about global
supply, as well as market speculation. Oil prices increased
significantly following Russia's invasion of Ukraine in February
2022 and have remained volatile in light of the Israel-Hamas
conflict.
Despite the Group's strong recovery
from the Covid-19 pandemic, future developments may again have a
material adverse impact on the Company's business, results of
operations, financial condition and liquidity.
Among the factors that are subject
to change and could significantly impact Ryanair's expected results
for the remainder of the year are the airline pricing environment,
capacity growth in Europe, competition from new and existing
carriers, market prices for the replacement of aircraft, costs
associated with environmental, safety and security measures, the
availability of appropriate insurance coverage, actions of the
Irish, U.K., European Union ("EU") and other governments and their
respective regulatory agencies, delays in the delivery of
contracted aircraft, supply chain disruptions/delays, weather
related disruptions, ATC strikes and staffing related disruptions,
uncertainties surrounding Brexit, fluctuations in currency exchange
rates and interest rates, airport access and charges, labour
relations, the economic environment of the airline industry, the
general economic environment in Ireland, the U.K., and Continental
Europe, including the risk of a recession or significant economic
slowdown, the general willingness of passengers to travel, other
economic, social and political factors and unforeseen security
events.
Board of Directors
Details of the members of the
Company's Board of Directors are set forth on pages 119 and 120 of
the Group's 2023 Annual Report. Bertrand Grabowski was appointed to
the Board with effect from October 1, 2023 and Dick Milliken
retired from the Board with effect from September 14,
2023.
Related party transactions -
Please see note 9.
Post balance sheet events -
Please see note 12.
Going concern
The Directors, having made
inquiries, believe that the Group has adequate resources to
continue in operational existence for at least the next 12 months
and that it is appropriate to adopt the going concern basis in
preparing these interim financial statements. The continued
preparation of the Group's consolidated interim financial
statements on the going concern basis is supported by the financial
projections prepared by the Group.
In arriving at this decision to
adopt the going concern basis of accounting, the Board has
considered, among other things:
· The
Group's net profit of €2.19BN in the nine months ended December 31,
2023;
· The
Group's liquidity, with €2.92BN gross cash and €0.15BN net cash at
December 31, 2023, €0.26BN undrawn funds under the Group's €0.75BN
revolving credit facility and the Group's continued focus on cash
management;
· The
Group's BBB+ (stable) credit ratings from both S&P and Fitch
Ratings;
· The
Group's strong balance sheet position with its 546 owned B737 fleet unencumbered;
· The
Group's access to the debt capital markets, unsecured/secured bank
debt and sale & leaseback transactions;
· Strong
cost control across the Group;
· The
Group's fuel hedging position (FY24 fuel requirements were 84%
hedged (via swaps and caps) and 65% of FY25 jet fuel requirements
were hedged at December 31, 2023); and
· The
Group's ability, as evidenced throughout the Covid-19 crisis, to
preserve cash and reduce operational and capital expenditure in a
downturn.
Ryanair Holdings plc and
Subsidiaries
Notes forming Part of the Condensed
Consolidated
Interim Financial
Statements
1.
Basis of preparation and material accounting
policies
Ryanair Holdings plc (the
"Company") is a company domiciled in Ireland. The unaudited
condensed consolidated interim financial statements for the nine
months ended December 31, 2023 comprise the results of the Company
and its subsidiaries (together referred to as the
"Group").
These unaudited condensed
consolidated interim financial statements ("the interim financial
statements"), which should be read in conjunction with our 2023
Annual Report for the year ended March 31, 2023, have been prepared
in accordance with IAS 34 Interim Financial Reporting as adopted by
the EU ("IAS 34"). They do not include all of the information
required for full annual financial statements and should be read in
conjunction with the most recent published consolidated financial
statements of the Group. The consolidated financial statements of
the Group as at and for the year ended March 31, 2023, are
available at http://investor.ryanair.com/.
In adopting the going concern basis
in preparing the interim financial statements, the Directors have
considered Ryanair's available sources of finance including access
to the capital markets, sale & leaseback transactions, secured
and unsecured debt structures, undrawn funds under the Group's
revolving credit facility, the Group's cash on-hand and cash
generation and preservation projections, together with factors
likely to affect its future performance, as well as the Group's
principal risks and uncertainties.
The December 31, 2023 figures and
the December 31, 2022 comparative figures do not include all of the
information required for full annual financial statements and
therefore do not constitute statutory financial statements of the
Group within the meaning of the Companies Act, 2014. The
consolidated financial statements of the Group for the year ended
March 31, 2023, together with the independent auditor's report
thereon, are available on the Company's website and were filed with
the Irish Registrar of Companies following the Company's Annual
General Meeting. The auditor's report on those financial statements
was unqualified. The accounting policies, presentation and methods
of computation followed in the interim financial statements are
consistent with those applied in the Company's latest Annual
Report.
The Audit Committee, upon
delegation of authority by the Board of Directors, approved the
unaudited condensed consolidated interim financial statements for
the nine months ended December 31, 2023 on January 26,
2024.
Except as stated otherwise below,
the interim financial statements for the nine months ended December
31, 2023 have been prepared in accordance with the accounting
policies set out in the Group's most recent published consolidated
financial statements, which were prepared in accordance with IFRS
as adopted by the EU and also in compliance with IFRS as issued by
the International Accounting Standards Board (IASB).
New IFRS standards and amendments adopted during the
year
The following new and amended IFRS
standards, amendments and IFRIC interpretations, have been issued
by the IASB, and have also been endorsed by the EU unless stated
otherwise. These standards are effective for the first time for the
Group's financial year beginning on April 1, 2023 and therefore
have been applied by the Group in these condensed consolidated
interim financial statements:
·
Amendments to IAS 12 Income Taxes: Deferred Tax
related to Assets and Liabilities arising from a Single Transaction
(effective on or after January 1, 2023).
·
Amendments to IAS 8 Accounting Policies, Changes
in Accounting Estimates and Errors: Definition of Accounting
Estimates (effective on or after January 1, 2023).
·
Amendments to IAS 1 Presentation of Financial
Statements and IFRS Practice Statement 2: Disclosure of Accounting
policies (effective on or after January 1, 2023).
·
IFRS 17 Insurance Contracts; including amendments
to IFRS 17 (effective on or after January 1, 2023).
·
Amendments to IFRS 17 Insurance contracts: Initial
Application of IFRS 17 and IFRS 9 - Comparative Information
(effective on or after January 1, 2023).
·
Amendments to IAS 12 Income taxes: International
Tax Reform - Pillar Two Model Rules (effective on or after January
1, 2023).
The adoption of these new or
amended standards did not have a material impact on the Group's
financial position or results in the nine months ended December 31,
2023.
New IFRS standards and amendments issued but not yet
effective
The following new or amended
standards and interpretations will be adopted for the purposes of
the preparation of future financial statements, where
applicable. While under review, we do not anticipate that the
adoption of these new or revised standards and interpretations will
have a material impact on our financial position or
performance:
·
Amendments to IAS 1 Presentation of Financial
Statements: Classification of Liabilities as Current or
Non-current, Classification of Liabilities as Current or
Non-current - Deferral of Effective Date, and Non-current
Liabilities with Covenants (effective on or after January 1,
2024).
·
Amendments to IFRS 16 Leases: Lease Liability in a
Sale & Leaseback (effective on or after January 1,
2024).
·
Amendments to IAS 7 Statement of Cash Flows and
IFRS 7 Financial Instruments: Disclosures: Supplier Finance
Arrangements (effective on or after January 1, 2024).*
·
Amendments to IAS 21 The Effects of Changes in
Foreign Exchange Rates: Lack of Exchangeability (effective on or
after January 1, 2025).*
* These standards or amendments to
standards are not as of yet EU endorsed.
2.
Judgements and estimates
The preparation of financial
statements in conformity with IFRS requires management to make
estimates, judgements and assumptions that affect the application
of policies and reported amounts of assets and liabilities, income
and expenses. These estimates and associated assumptions are based
on historical experience and various other factors believed to be
reasonable under the circumstances, and the results of such
estimates form the basis of carrying values of assets and
liabilities that are not readily apparent from other sources.
Actual results could differ materially from these estimates. These
underlying assumptions are reviewed on an ongoing basis. A revision
to an accounting estimate is recognised in the period in which the
estimate is revised if the revision affects only that period or in
the period of the revision and future periods if these are also
affected. Principal sources of estimation uncertainty have been set
forth below. Actual results may differ from estimates.
Critical estimates
Long-lived assets
At December 31, 2023, the Group had
€10.62BN of property, plant and equipment long-lived assets, of
which €10.41BN were aircraft related. In accounting for long-lived
assets, the Group must make estimates about the expected useful
lives of the assets and the expected residual values of the
assets.
In estimating the useful lives and
expected residual values of the aircraft component, the Group
considered a number of factors, including its own historic
experience and past practices of aircraft disposals, renewal
programmes, forecasted growth plans, external valuations from
independent appraisers, recommendations from the aircraft supplier
and manufacturer and other industry-available
information.
The Group's estimate of each
aircraft's residual value is 15% of market value on delivery, based
on independent valuations and actual aircraft disposals during
prior periods, and each aircraft's useful life is determined to be
23 years.
Revisions to these estimates could
be caused by changes to maintenance programmes, changes in
utilisation of the aircraft, governmental regulations on ageing
aircraft, changes in new aircraft technology, changes in
governmental and environmental taxes, changes in new aircraft fuel
efficiency and changing market prices for new and used aircraft of
the same or similar types. The Group therefore evaluates its
estimates and assumptions in each reporting period, and, when
warranted, adjusts these assumptions. Any adjustments are accounted
for on a prospective basis through depreciation expense.
Critical judgements
In the opinion of the Directors,
the following significant judgements were exercised in the
preparation of the financial statements:
Long-lived assets
On acquisition a judgement is made
to allocate an element of the cost of an acquired aircraft to the
cost of major airframe and engine overhauls, reflecting its service
potential and the maintenance condition of its engines and
airframe. This cost, which can equate to a substantial element of
the total aircraft cost, is amortised over the shorter of the
period to the next maintenance check (usually between 8 and 12
years) or the remaining useful life of the aircraft.
3.
Seasonality of operations
The Group's results of operations
have varied significantly from quarter to quarter, and management
expects these variations to continue. Among the factors
causing these variations are the airline industry's sensitivity to
general economic conditions and the seasonal nature of air
travel. Accordingly, the first half-year typically results in
higher revenues and results.
4.
Income tax expense
The Group's consolidated tax
expense for the nine months ended December 31, 2023 of €268M
(December 31, 2022: pre-exceptional €187M) comprises a current tax
charge of €34M and a deferred tax charge of €234M primarily
relating to the temporary differences for property, plant and
equipment and net operating losses. No significant or unusual
tax charges or credits arose during the period. The effective
tax rate of 11% for the nine months (2022: 10%) is the result of
the mix of profits and losses incurred by Ryanair's operating
subsidiaries primarily in Ireland, Malta, Poland and the
U.K.
5.
Contingencies
The Group is engaged in litigation
arising in the ordinary course of its business. The Group
does not believe that any such litigation will individually, or in
aggregate, have a material adverse effect on the financial
condition of the Group. Should the Group be unsuccessful in these
litigation actions, management believes the possible liabilities
then arising cannot be determined but are not expected to
materially adversely affect the Group's results of operations or
financial position.
6.
Capital commitments
At December 31, 2023 the Group had
an operating fleet of 547 (2022: 495) Boeing 737 and 27 (2022: 28)
Airbus A320 aircraft. In September 2014,
the Group agreed to purchase up to 200 (100 firm and 100 options)
Boeing 737-8200 aircraft which was subsequently increased to 210
(135 firm and 75 options). In December 2020, the Group increased
its firm orders from 135 to 210 Boeing 737-8200 aircraft. At
December 31, 2023, the Group had taken delivery of 136 of these
aircraft. The remaining aircraft are due to be delivered before the
end of FY25. In May 2023, the Group ordered 300 (150 firm and 150
options) new Boeing 737-MAX-10 aircraft for delivery between 2027
to 2033. This transaction was approved at the Company's AGM on
September 14, 2023.
7.
Analysis of operating revenues and segmental
analysis
The Group determines and presents
operating segments based on the information that internally is
provided to the Group CEO, who is the Company's Chief Operating
Decision Maker (CODM).
The Group comprises five separate
airlines, Buzz, Lauda Europe (Lauda), Malta Air, Ryanair DAC and
Ryanair UK (which is currently consolidated within Ryanair DAC).
Ryanair DAC is reported as a separate segment as it exceeds the
applicable quantitative thresholds for reporting purposes. Buzz,
Malta and Lauda do not individually exceed the quantitative
thresholds and accordingly are presented on an aggregate basis as
they exhibit similar economic characteristics and their services,
activities and operations are sufficiently similar in nature. The
results of these operations are included as 'Other
Airlines.'
The CODM assesses the performance
of the business based on the profit after tax of each airline for
the reporting period. Resource allocation decisions for all
airlines are based on airline performance for the relevant period,
with the objective in making these resource allocation decisions
being to optimise consolidated financial results. Reportable
segment information is presented as follows:
Nine Months Ended
|
Ryanair DAC
|
Other
Airlines
|
Elimination
|
Total
|
|
Dec 31,
|
Dec 31,
|
Dec 31,
|
Dec 31,
|
2023
|
2023
|
2023
|
2023
|
|
€M
|
€M
|
€M
|
€M
|
Scheduled revenue
|
7,719.0
|
104.1
|
-
|
7,823.1
|
Ancillary revenue
|
3,450.8
|
-
|
-
|
3,450.8
|
Inter-segment revenue
|
556.6
|
1,043.6
|
(1,600.2)
|
-
|
Segment
revenue
|
11,726.4
|
1,147.7
|
(1,600.2)
|
11,273.9
|
|
|
|
|
|
Reportable segment profit after income tax
|
2,116.9
|
76.0
|
-
|
2,192.9
|
|
|
|
|
|
Other segment information:
|
|
|
|
|
Depreciation
|
(790.8)
|
(31.4)
|
-
|
(822.2)
|
Net finance
income/(expense)
|
54.0
|
(6.4)
|
-
|
47.6
|
Capital expenditure
|
(1,489.1)
|
(42.2)
|
-
|
(1,531.3)
|
|
|
|
|
|
Segment assets
|
15,112.1
|
343.6
|
-
|
15,455.7
|
Segment liabilities
|
(6,958.1)
|
(626.1)
|
-
|
(7,584.2)
|
|
Nine
Months Ended
|
Ryanair DAC
|
Other
Airlines
|
Elimination
|
Total
|
|
Dec 31,
|
Dec 31,
|
Dec 31,
|
Dec 31,
|
2022
|
2022
|
2022
|
2022
|
|
€M
|
€M
|
€M
|
€M
|
Scheduled revenue
|
5,785.2
|
86.2
|
-
|
5,871.4
|
Ancillary revenue
|
3,056.8
|
-
|
-
|
3,056.8
|
Inter-segment revenue
|
572.4
|
967.2
|
(1,539.6)
|
-
|
Segment
revenue
|
9,414.4
|
1,053.4
|
(1,539.6)
|
8,928.2
|
|
|
|
|
|
Reportable segment profit after income tax
(i)
|
1,549.2
|
32.7
|
-
|
1,581.9
|
|
|
|
|
|
Other segment information:
|
|
|
|
|
Depreciation
|
(629.4)
|
(36.4)
|
-
|
(665.8)
|
Net finance expense
|
(37.8)
|
(4.3)
|
-
|
(42.1)
|
Capital expenditure
|
(1,262.9)
|
(118.0)
|
-
|
(1,380.9)
|
|
|
|
|
|
Segment assets
|
15,263.7
|
497.2
|
-
|
15,760.9
|
Segment liabilities
|
(8,599.3)
|
(869.3)
|
-
|
(9,468.6)
|
|
|
|
|
|
(i) Adjusted profit after tax in the nine months to December
31, 2022, excludes a net exceptional loss after tax of €116.4M,
attributable to the fair value measurement of jet fuel call
options.
Quarter Ended
|
Ryanair DAC
|
Other
Airlines
|
Elimination
|
Total
|
|
Dec 31,
|
Dec 31,
|
Dec 31,
|
Dec 31,
|
2023
|
2023
|
2023
|
2023
|
|
€M
|
€M
|
€M
|
€M
|
Scheduled revenue
|
1,739.6
|
9.6
|
-
|
1,749.2
|
Ancillary revenue
|
949.5
|
-
|
-
|
949.5
|
Inter-segment revenue
|
181.7
|
347.9
|
(529.6)
|
-
|
Segment
revenue
|
2,870.8
|
357.5
|
(529.6)
|
2,698.7
|
|
|
|
|
|
Reportable segment profit after income tax
|
7.0
|
7.8
|
-
|
14.8
|
|
|
|
|
|
Other segment information:
|
|
|
|
|
Depreciation
|
(252.9)
|
(10.5)
|
-
|
(263.4)
|
Net finance
income/(expense)
|
17.8
|
(2.0)
|
-
|
15.8
|
Capital expenditure
|
(539.2)
|
(13.0)
|
-
|
(552.2)
|
|
|
|
|
|
Segment assets
|
15,112.1
|
343.6
|
-
|
15,455.7
|
Segment liabilities
|
(6,958.1)
|
(626.1)
|
-
|
(7,584.2)
|
|
Quarter Ended
|
Ryanair DAC
|
Other
Airlines
|
Elimination
|
Total
|
|
Dec 31,
|
Dec 31,
|
Dec 31,
|
Dec 31,
|
2022
|
2022
|
2022
|
2022
|
|
€M
|
€M
|
€M
|
€M
|
Scheduled revenue
|
1,438.6
|
8.0
|
-
|
1,446.6
|
Ancillary revenue
|
865.5
|
-
|
-
|
865.5
|
Inter-segment revenue
|
190.8
|
317.9
|
(508.7)
|
-
|
Segment
revenue
|
2,494.9
|
325.9
|
(508.7)
|
2,312.1
|
|
|
|
|
|
Reportable segment profit after income tax
(i)
|
205.7
|
5.4
|
-
|
211.1
|
|
|
|
|
|
Other segment information:
|
|
|
|
|
Depreciation
|
(202.0)
|
(10.7)
|
-
|
(212.7)
|
Net finance expense
|
(3.6)
|
(2.3)
|
-
|
(5.9)
|
Capital expenditure
|
(583.7)
|
-
|
-
|
(583.7)
|
|
|
|
|
|
Segment assets
|
15,263.7
|
497.2
|
-
|
15,760.9
|
Segment liabilities
|
(8,599.3)
|
(869.3)
|
-
|
(9,468.6)
|
(i) Adjusted profit after tax in the three months to December
31, 2022, excludes a net exceptional loss after tax of €9.0M,
attributable to the fair value measurement of jet fuel call
options.
The following table disaggregates
revenue by primary geographical market. In accordance with IFRS 8,
revenue by country of departure has been provided where revenue for
that country is in excess of 10% of total revenue. Ireland is
presented as it represents the country of domicile. "Other"
includes all other countries in which the Group has
operations.
|
|
|
Nine Months
Ended
Dec 31,
2023
|
Nine
Months
Ended
Dec 31,
2022
|
Quarter
Ended
Dec 31,
2023
|
Quarter
Ended
Dec 31,
2022
|
|
|
|
€M
|
€M
|
€M
|
€M
|
|
|
|
|
|
|
|
Italy
|
|
|
2,400.8
|
1,998.0
|
571.3
|
501.1
|
Spain
|
|
|
2,032.9
|
1,601.3
|
481.8
|
399.1
|
United Kingdom
|
|
|
1,686.0
|
1,301.1
|
418.9
|
351.8
|
Ireland
|
|
|
653.9
|
522.5
|
163.4
|
142.8
|
Other
|
|
|
4,500.3
|
3,505.3
|
1,063.3
|
917.3
|
Total revenue
|
|
|
11,273.9
|
8,928.2
|
2,698.7
|
2,312.1
|
Ancillary revenues comprise
revenues from non-flight scheduled operations, inflight sales and
internet-related services. Non-flight scheduled revenue arises from
the sale of discretionary products such as priority boarding,
allocated seats, car hire, travel insurance, airport transfers,
room reservations and other sources, including excess baggage
charges and other fees, all directly attributable to the low-fares
business.
The vast majority of ancillary
revenue is recognised at a point in time, which is typically the
flight date. The economic factors that would impact the nature,
amount, timing and uncertainty of revenue and cashflows associated
with the provision of passenger travel-related ancillary services
are homogeneous across the various component categories within
ancillary revenue. Accordingly, there is no further disaggregation
of ancillary revenue required in accordance with IFRS
15.
8.
Property, plant and equipment
Acquisitions and disposals
During the period ended December
31, 2023, net capital additions amounted to €1.46BN principally
reflecting aircraft deliveries in the period, aircraft pre-delivery
deposits and capitalised maintenance, offset by supplier
reimbursements and favourable €/US$ hedging.
9.
Related party transactions
The Company's related parties
comprise its subsidiaries, Directors and key management personnel.
All transactions with subsidiaries eliminate on consolidation and
are not disclosed.
There were no related party
transactions in the nine months ended December 31, 2023 that
materially affected the financial position or the performance of
the Group during that period and there were no changes in the
related party transactions described in the 2023 Annual Report that
could have a material effect on the financial position or
performance of the Group in the same period.
10.
Financial instruments and
financial risk management
The Group is exposed to various
financial risks arising in the normal course of business. The
Group's financial risk exposures are predominantly related
to commodity price, foreign exchange and
interest rate risks. The Group uses financial instruments to manage
exposures arising from these risks.
These interim financial statements
do not include all financial risk management information and
disclosures required in the annual financial statements and should
be read in conjunction with the 2023 Annual Report.
There have been no changes in our risk management
policies in the period.
Fair value
hierarchy
Financial instruments measured at
fair value in the balance sheet are categorised by the type of
valuation method used. The different valuation levels are defined
as follows:
·
Level 1: quoted prices (unadjusted) in active
markets for identical assets or liabilities that the Group can
access at the measurement date.
·
Level 2: inputs other than quoted prices included
within Level 1 that are observable for that asset or liability,
either directly or indirectly.
·
Level 3: significant unobservable inputs for the
asset or liability.
Fair value
estimation
Fair value is the price that would
be received to sell an asset, or paid to transfer a liability, in
an orderly transaction between market participants at the
measurement date. The following methods and assumptions were used
to estimate the fair value of each material class of the Group's
financial instruments:
Financial instruments measured at fair value
·
Derivatives -
interest rate swaps: Discounted
cash-flow analyses have been used to determine their fair value,
taking into account current market inputs and rates. The Group's
credit risk and counterparty's credit risk is taken into account
when establishing fair value (Level 2).
·
Derivatives -
currency forwards, jet fuel forward contracts and carbon
contracts: A comparison of the
contracted rate to the market rate for contracts providing a
similar risk profile at December 31, 2023 has been used to
establish fair value. The Group's credit risk and counterparty's
credit risk is taken into account when establishing fair value
(Level 2).
·
Derivatives - jet
fuel call options: The fair value of
jet fuel call options is determined based on standard option
pricing valuation models (Level 2).
The Group policy is to recognise
any transfers between levels of the fair value hierarchy as of the
end of the reporting period during which the transfer occurred.
During the nine months ended December 31, 2023, there were no
reclassifications of financial instruments and no transfers between
levels of the fair value hierarchy used in measuring the fair value
of financial instruments.
Financial instruments not measured at fair
value
·
Long-term
debt: The repayments which the Group
is committed to make have been discounted at the relevant market
rates of interest applicable (including credit spreads) at December
31, 2023 to arrive at a fair value representing the amount payable
to a third party to assume the obligations.
The fair value of financial assets
and financial liabilities, together with the carrying amounts in
the condensed consolidated balance sheet, are as
follows:
|
At Dec 31,
|
At Dec 31,
|
At Mar 31,
|
At Mar 31,
|
|
2023
|
2023
|
2023
|
2023
|
|
Carrying
|
Fair
|
Carrying
|
Fair
|
|
Amount
|
Value
|
Amount
|
Value
|
Non-current financial assets
|
€M
|
€M
|
€M
|
€M
|
Derivative financial
instruments:
|
|
|
|
|
- U.S. dollar currency forward
contracts
|
3.4
|
3.4
|
53.2
|
53.2
|
- Interest rate swaps
|
-
|
-
|
1.4
|
1.4
|
|
3.4
|
3.4
|
54.6
|
54.6
|
Current financial assets
|
|
|
|
|
Derivative financial
instruments:
|
|
|
|
|
- U.S. dollar currency forward
contracts
|
105.4
|
105.4
|
226.2
|
226.2
|
- Jet fuel options
|
1.5
|
1.5
|
14.1
|
14.1
|
- Jet fuel & carbon derivative
forward contracts
|
42.6
|
42.6
|
49.6
|
49.6
|
- Interest rate swaps
|
-
|
-
|
2.2
|
2.2
|
|
149.5
|
149.5
|
292.1
|
292.1
|
Trade receivables*
|
76.5
|
|
59.7
|
|
Cash and cash
equivalents*
|
2,518.6
|
|
3,599.3
|
|
Financial asset: cash > 3
months*
|
379.5
|
|
1,056.2
|
|
Restricted cash*
|
20.8
|
|
19.5
|
|
|
3,144.9
|
149.5
|
5,026.8
|
292.1
|
Total financial assets
|
3,148.3
|
152.9
|
5,081.4
|
346.7
|
|
|
|
|
|
|
At Dec 31,
|
At Dec 31,
|
At Mar 31,
|
At Mar 31,
|
|
2023
|
2023
|
2023
|
2023
|
|
Carrying
|
Fair
|
Carrying
|
Fair
|
|
Amount
|
Value
|
Amount
|
Value
|
Non-current financial liabilities
|
€M
|
€M
|
€M
|
€M
|
Derivative financial
instruments:
|
|
|
|
|
- Jet fuel & carbon derivative
contracts
|
34.3
|
34.3
|
8.1
|
8.1
|
- U.S. dollar currency forward
contracts
|
14.5
|
14.5
|
3.1
|
3.1
|
|
48.8
|
48.8
|
11.2
|
11.2
|
Non-current maturities of
debt
|
|
|
|
|
- Long-term debt
|
488.7
|
488.7
|
812.3
|
812.3
|
- Bonds
|
2,043.3
|
1,971.2
|
2,040.9
|
1,928.4
|
|
2,532.0
|
2,459.9
|
2,853.2
|
2,740.7
|
|
2,580.8
|
2,508.7
|
2,864.4
|
2,751.9
|
Current financial liabilities
|
|
|
|
|
Derivative financial
instruments:
|
|
|
|
|
- Jet fuel & carbon derivative
contracts
|
142.3
|
142.3
|
341.7
|
341.7
|
- U.S. dollar currency forward
contracts
|
25.5
|
25.5
|
44.9
|
44.9
|
|
167.8
|
167.8
|
386.6
|
386.6
|
|
|
|
|
|
Current maturities of
debt:
|
|
|
|
|
- Short-term debt
|
69.9
|
69.9
|
76.8
|
76.8
|
- Promissory notes**
|
-
|
-
|
230.6
|
230.6
|
- Bonds
|
-
|
-
|
749.3
|
744.3
|
|
69.9
|
69.9
|
1,056.7
|
1,051.7
|
Trade payables*
|
808.3
|
|
1,065.5
|
|
Accrued expenses*
|
1,474.8
|
|
1,276.6
|
|
|
2,520.8
|
237.7
|
3,785.4
|
1,438.3
|
Total financial
liabilities
|
5,101.6
|
2,746.4
|
6,649.8
|
4,190.2
|
*The fair value of each of these financial instruments
approximate their carrying values due to the short-term nature of
the instruments.
**During the nine months ended
December 31, 2023, €0.2BN promissory notes were
settled.
During May 2023 the Group converted
its unsecured €750m syndicated term loan into a revolving credit
facility (at a lower margin) with an extended maturity to May 2028
(previously 2024). During August 2023 the
Group repaid a maturing €750M bond and paid down €260M of its
revolving credit facility.
11.
Shareholders' equity and shareholders' returns
During the nine months ended
December 31, 2023, 1.1M ordinary shares were issued at a strike
price of €12 per share following the exercise of vested share
options for proceeds of €14M. There were no shareholder returns
during the nine months ended December 31, 2023.
In November 2023, the Board
announced the Group's new Dividend Policy. In line with this
policy, an interim dividend of €0.175 per share will be paid on
February 28, 2024 (Record Date: January 19, 2024).
12. Post
balance sheet events
There were no post balance sheet
events.