SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
For the
month of January 2024
RYANAIR HOLDINGS PLC
(Translation
of registrant's name into English)
c/o Ryanair Ltd Corporate Head Office
Dublin Airport
County Dublin Ireland
(Address
of principal executive offices)
Indicate
by check mark whether the registrant files or will file
annual
reports
under cover Form 20-F or Form 40-F.
Form
20-F..X.. Form 40-F
Indicate
by check mark whether the registrant by furnishing the
information
contained
in this Form is also thereby furnishing the information to
the
Commission
pursuant to Rule 12g3-2(b) under the Securities
Exchange
Act of
1934.
Yes
No ..X..
If
"Yes" is marked, indicate below the file number assigned to the
registrant
in
connection with Rule 12g3-2(b): 82- ________
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:
|
Neil
Sorahan
Ryanair
Holdings plc
Tel: +353-1-9451212
|
Paul
Clifford
Drury
Tel: +353-1-260-5000
|
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
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 Balance Sheet as at December 31,
2023 (unaudited)
|
|
At Dec 31,
|
At
Mar 31,
|
|
|
2023
|
2023
|
|
Note
|
€M
|
€M
|
Non-current
assets
|
|
|
|
Property, plant and
equipment
|
|
10,620.1
|
9,908.9
|
Right-of-use
asset
|
|
176.9
|
209.1
|
Intangible
assets
|
|
146.4
|
146.4
|
Derivative
financial instruments
|
10
|
3.4
|
54.6
|
Deferred
tax
|
|
5.9
|
6.6
|
Other
assets
|
|
199.0
|
168.9
|
Total
non-current assets
|
|
11,151.7
|
10,494.5
|
|
|
|
|
Current
assets
|
|
|
|
Inventories
|
|
6.2
|
6.0
|
Other
assets
|
|
1,152.9
|
878.6
|
Trade
receivables
|
10
|
76.5
|
59.7
|
Derivative
financial instruments
|
10
|
149.5
|
292.1
|
Restricted
cash
|
10
|
20.8
|
19.5
|
Financial assets:
cash > 3 months
|
10
|
379.5
|
1,056.2
|
Cash
and cash equivalents
|
10
|
2,518.6
|
3,599.3
|
Total
current assets
|
|
4,304.0
|
5,911.4
|
|
|
|
|
Total
assets
|
|
15,455.7
|
16,405.9
|
|
|
|
|
Current
liabilities
|
|
|
|
Provisions
|
|
29.1
|
19.8
|
Trade
payables
|
10
|
808.3
|
1,065.5
|
Accrued
expenses and other liabilities
|
|
3,106.7
|
4,783.5
|
Current
lease liability
|
|
40.1
|
43.2
|
Current
maturities of debt
|
10
|
69.9
|
1,056.7
|
Derivative
financial instruments
|
10
|
167.8
|
386.6
|
Current
tax
|
|
63.7
|
66.3
|
Total
current liabilities
|
|
4,285.6
|
7,421.6
|
|
|
|
|
Non-current
liabilities
|
|
|
|
Provisions
|
|
181.6
|
154.5
|
Derivative
financial instruments
|
10
|
48.8
|
11.2
|
Deferred
tax
|
|
405.4
|
159.3
|
Non-current lease
liability
|
|
130.8
|
163.1
|
Non-current
maturities of debt
|
10
|
2,532.0
|
2,853.2
|
Total
non-current liabilities
|
|
3,298.6
|
3,341.3
|
|
|
|
|
Shareholders'
equity
|
|
|
|
Issued
share capital
|
|
6.9
|
6.9
|
Share
premium account
|
|
1,399.6
|
1,379.9
|
Other
undenominated capital
|
|
3.5
|
3.5
|
Retained
earnings
|
|
6,369.8
|
4,180.0
|
Other
reserves
|
|
91.7
|
72.7
|
Total
shareholders' equity
|
|
7,871.5
|
5,643.0
|
|
|
|
|
Total
liabilities and shareholders' equity
|
|
15,455.7
|
16,405.9
|
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.
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf
by the undersigned, hereunto duly authorized.
Date: 29
January, 2024
|
By:___/s/
Juliusz Komorek____
|
|
|
|
Juliusz
Komorek
|
|
Company
Secretary
|
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