TIDM0RYA TIDMRYA
RNS Number : 1694O
Ryanair Holdings PLC
30 January 2023
RYANAIR REPORTS Q3 NET PROFIT OF EUR211M
DUE TO STRONG CHRISTMAS/NEW YEAR TRAFFIC & LOW COSTS
Ryanair Holdings plc today (30 Jan.) reported a Q3 PAT of
EUR211m, compared to a pre-Covid (FY20) Q3 PAT of EUR88m. Strong
pent-up travel demand over the Oct. mid-term and peak Christmas/New
Year holiday season (with no adverse impact from Covid or the war
in Ukraine) stimulated strong traffic and fares across all
markets.
31 Dec. 31 Dec. Change
2021 2022
Customers 31.1m 38.4m +24%
---------- ---------- -------
Load Factor 84% 93% +9pts
---------- ---------- -------
Revenue EUR1.47bn EUR2.31bn +57%
---------- ---------- -------
EUR2.15bn
Op. Costs EUR1.59bn * +36%
---------- ---------- -------
Net (Loss)/ (EUR96m) EUR211m * n/m
PAT
---------- ---------- -------
EPS (EUR0.08) EUR0.18 n/m
---------- ---------- -------
* Non-IFRS financial measure, excl. EUR9m except. unrealised
mark-to-market loss (timing unwind) on jet fuel caps.
During Q3:
-- Traffic jumped 24% to 38.4m (+7% pre-Covid in FY20).
-- Q3 fares rise 14% on pre-Covid levels.
-- Pay cuts restored by agreement in Dec. (28-months early) for over 95% of crews.
-- YTD unit costs (ex-fuel) of just EUR30.
-- 84 B737-8200 "Gamechangers" delivered at 31 Dec. Total fleet of 523 aircraft.
-- 230 new routes announced for FY24 (total 2,450 routes).
-- Strong market share gains in Italy, Poland, Ireland & Spain.
-- H1 FY24 fuel hedging increased to 60% cover at $90bbl.
Ryanair's Michael O'Leary, said:
ENVIRONMENT:
"Our investment in new fuel efficient, greener, B737 aircraft
continued in Q3 with our Gamechanger fleet (4% more seats with 16%
less fuel) increasing by 11 to 84 aircraft. In Q3 we began to
retro-fit scimitar winglets on our 409 B737-800NG owned fleet (a
$200m+ investment) which will further reduce fuel burn by 1.5%.
Sustainable aviation fuel (SAF) will play a key role in reducing
our CO per pax/km by 10% to 60 grams by 2030, when hopefully 12.5%
of our flights will be powered with SAF. We continue to invest to
accelerate supply of SAF. Building on our successful partnerships
with Neste (Schiphol) and OMV (Austria, Germany and CEE), Ryanair
signed an MOU in Q3 with Shell to supply 360,000 tonnes of SAF
between 2025 - 2030 (saving 900,000 tonnes of CO ), at Ryanair's
larger bases in London and Dublin. In Dec. we hosted a
Sustainability Day with our partner Trinity College Dublin ("TCD").
This event brought together industry leaders, scientists and
engineers (incl. Boeing, MAG, Safran, Shell Aviation, Ryanair, TCD
academics and PhD students) who presented to an audience of
investors, politicians, regulators and financial institutions on
Ryanair's (and the aviation industry) path to net carbon zero by
2050. Through A4E, and the EU, we are campaigning to accelerate
reform of European ATC to eliminate needless flight delays, which
will substantially reduce fuel consumption and CO emissions.
Passengers who switch to Ryanair (from high-fare EU legacy
airlines) can reduce their emissions by up to 50% per flight. In
recognition of our progress to date and our industry leading (CDP
'B') climate rating, MSCI increased Ryanair's ESG score to 'BBB'
(was 'B') and Sustainalytics [1] ranked Ryanair the No.1 airline in
Europe for ESG performance. Earlier this year, we submitted
Ryanair's commitment letter to SBTi [2] and we will work with them
over the next 2 years to verify our ambitious targets to become net
carbon zero by 2050.
SOCIAL:
Pay restoration:
At the outset of the Covid-19 pandemic, Ryanair and its union
partners negotiated agreements to protect crew jobs via temporary
pay cuts which were to be gradually restored from 2022 to 2025.
These agreements successfully ensured crew jobs security through
the 2 years Covid pandemic, as Ryanair maintained not only the jobs
but also the licences of our crews. This investment positioned
Ryanair as the most prepared airline for the post-Covid traffic
recovery. By keeping our crews current, and recruiting early,
Ryanair avoided the crew shortages which caused so many competitor
cancellations and disruptions in S.22. In Nov., following a strong
H1 performance, Ryanair agreed to fully restore pay (28 months
early) for over 95% of crews covered by new long-term pay
agreements in the Dec. payroll. We remain available to conclude
agreements (on similar terms) with the tiny minority of unions
representing less than 5% of our crews who have so far failed to
reach agreement on accelerated pay restoration.
Training:
As Ryanair grows traffic to 225m p.a. by FY26 our Group airlines
will create thousands of high paid jobs for aviation professionals.
S.23 resourcing is well advanced with over 1,000 cadets enrolled in
our pilot training schools and new cabin crew courses underway.
Ryanair Labs recently launched a campaign to recruit 150 IT
professionals to our labs teams in Dublin, Madrid, Porto and
Wroclaw. During FY23 we announced new engineering maintenance
facilities in Malta, Kaunas (Lith.) and Shannon (Ire.) and expect
to add further capacity in the coming months. These new facilities
will enable us to create more cadets and apprenticeships for young
school leavers, bringing through the next generation of highly
skilled aviation professionals.
CSAT:
Building on strong operational resilience and reliability during
S.22 (despite numerous ATC delays/strikes and lengthy airport
security queues - particularly in Q1), Ryanair continued to deliver
industry leading service for our customers over the busy Oct.
school mid-term and peak Christmas/New Year travel period. This was
reflected in Q3's CSAT score which rose to 86% (83% for H1), with
crew friendliness our top score (rated at 95%).
GROWTH:
Ryanair secured strong market share gains in key EU markets as
we operated 112% of our pre-Covid capacity during the first 9
months of FY23. Most notable gains were in Italy (from 26% to 40%),
Poland (27% to 38%), Ireland (49% to 58%) and Spain (21% to 23%).
Our Routes team continue to negotiate traffic recovery growth deals
with airport partners as competitors struggle to recover capacity
(down as much as 20% this winter) and grapple with rising costs. Up
to the end of Q3, Ryanair has taken delivery of 84 B737
Gamechangers and we're planning FY24 growth based on 124 new
aircraft for peak S.23, although there is a risk (despite recent
Boeing production improvements) that some of our Gamechanger
deliveries could slip. Over 230 new routes (total 2,450 with 3,200
daily flights) have been announced for FY24. With Asian tourists
now returning and a strong US$ encouraging Americans to explore
Europe, we're seeing robust demand for Easter and summer 2023
flights. We therefore encourage customers to book early on
www.ryanair.com to secure the lowest fares as we expect these will
sell out early.
Over the past 3 years, numerous airlines went bankrupt and many
legacy carriers (incl. Alitalia, TAP, SAS and LOT) significantly
cut their fleets and passenger capacity, while racking up
multi-billion-euro State Aid packages. These structural capacity
reductions have created enormous growth opportunities for Ryanair.
These opportunities, combined with our reliability, lowest
(ex-fuel) unit costs, strong fuel and US$ hedges, fleet ownership
and strong balance sheet, ensures that the Group is well placed to
grow profitability and traffic to 225m p.a. by FY26.
Q3 FY23 BUSINESS REVIEW:
Revenue & Costs:
Q3 scheduled revenue increased almost 85% to EUR1.45bn due to
strong travel demand at higher fares (+14% over pre-Covid),
especially during the Oct. mid-term and the peak Christmas/New Year
holiday season. Ancillary revenue delivered another solid
performance, generating over EUR22.50 per passenger. Total Q3
revenue rose 57% to EUR2.31bn. Operating costs increased 36% to
EUR2.15bn, driven by higher fuel costs (+52% to EUR0.90bn, offset
by improved fuel burn as more Gamechangers enter the fleet), crew
pay restoration and 24% traffic growth. Ex-fuel operating costs
rose by only 26%, marginally ahead of traffic and year to date unit
costs (ex fuel) are just EUR30 per passenger. Other income/expenses
benefitted from a weaker US$ in Q3 reversing H1's negative currency
charge.
Our jet fuel requirements are 88% hedged at approx. $71bbl for
the remainder of FY23 and H1 FY24 cover has recently increased to
60% at $90bbl (FY24: 57% at $92bbl). Forex is also well hedged with
over 80% of Q4 FY23 EUR/$ opex hedged at just under 1.15 and
approx. 60% of FY24 at 1.08. Our Boeing order book is fully hedged
at EUR/$ 1.24 out to FY26. This strong hedge position helps
insulate Ryanair from spikes in fuel prices and gives our Group
airlines a significant cost advantage over our EU competitors for
the remainder of FY23 and into FY24.
Balance Sheet & Liquidity:
Ryanair's balance sheet is one of the strongest in the industry
with a BBB (positive) credit rating (S&P and Fitch) and
EUR4.07bn gross cash at quarter end. Almost all of the Group's
fleet of B737s are owned and c.96% are unencumbered which widens
our cost advantage as interest rates and leasing costs continue to
rise for competitors. Net debt at 31 Dec. was EUR0.96bn (from
EUR1.45bn at 31 Mar.), despite EUR1.27bn capex. Our focus over the
coming year is the repayment of EUR1.60bn of maturing bonds
(EUR850m in Mar. and EUR750m in Aug.) and funding peak capex while
aiming to return our balance sheet to a broadly zero net debt
position by April 2024.
OUTLOOK:
While bookings continue to be closer-in than in spring 2020
(pre-Covid), we have reasonable visibility for the remainder of
FY23, with FY traffic guided at 168m. Ryanair expects Q4 to be loss
making due to the absence of Easter from March. As announced on 4
Jan., we are guiding FY23 PAT (pre-exceptionals) in a range of
EUR1.325bn - EUR1.425bn (previously EUR1.00bn - EUR1.20bn). This
guidance remains heavily dependent upon avoiding adverse events in
Q4 (such as Covid and/or the war in Ukraine)."
S
For further information Neil Sorahan Piaras Kelly
please contact: Ryanair Holdings plc Edelman
www.ryanair.com Tel: +353-1-9451212 Tel: +353-1-5921330
Ryanair Holdings plc, Europe's largest airline group, is the
parent company of Buzz, Lauda, Malta Air, Ryanair & Ryanair UK.
Carrying 168m guests p.a. on approx. 3,200 daily flights from 91
bases, the Group connects 236 airports in 36 countries on a fleet
of 523 aircraft, with a further 126 Boeing 737s on order, which
will enable the Ryanair Group to grow traffic to 225m p.a. by FY26.
Ryanair has a team of over 21,000 highly skilled aviation
professionals delivering Europe's No.1 operational performance, and
an industry leading 38-year safety record. Ryanair is Europe's
greenest, cleanest, major airline group and customers switching to
fly Ryanair can reduce their CO emissions by up to 50% compared to
major European legacy airlines.
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, the availability of appropriate
insurance cover, 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.
Ryanair Holdings plc and Subsidiaries
Condensed Consolidated Interim Balance Sheet as at December 31, 2022
(unaudited)
At Dec 31, At Mar 31,
2022 2022
Note EURM EURM
Non-current assets
Property, plant and equipment 8 9,649.1 9,095.1
Right of use asset 8 221.0 133.7
Intangible assets 146.4 146.4
Derivative financial instruments 9 111.5 185.1
Deferred tax 2.8 42.3
Other assets 151.1 72.1
------------- ------------
Total non-current assets 10,281.9 9,674.7
------------- ------------
Current assets
Inventories 4.5 4.3
Other assets 806.2 401.1
Trade receivables 9 38.8 43.5
Derivative financial instruments 9 558.3 1,400.4
------------- ------------
Restricted cash 9 22.7 22.7
Financial assets: cash > 3
months 9 1,769.0 934.1
Cash and cash equivalents 9 2,279.5 2,669.0
------------- ------------
Total current assets 5,479.0 5,475.1
------------- ------------
Total assets 15,760.9 15,149.8
------------- ------------
Current liabilities
Provisions 10.3 9.2
Trade payables 9 1,174.0 1,029.0
Accrued expenses and other
liabilities 2,614.9 2,992.8
Current lease liability 44.7 56.9
Current maturities of debt 9 1,928.8 1,224.5
Derivative financial instruments 9 88.0 38.6
Current tax 68.8 47.7
Total current liabilities 5,929.5 5,398.7
------------- ------------
Non-current liabilities
Provisions 153.1 94.1
Trade payables 9 16.7 49.2
Derivative financial instruments 9 46.0 -
Deferred tax 267.7 266.5
Non-current lease liability 176.2 81.4
Non-current maturities of debt 9 2,879.4 3,714.6
------------- ------------
Total non-current liabilities 3,539.1 4,205.8
------------- ------------
Shareholders' equity
Issued share capital 10 6.9 6.8
Share premium account 10 1,379.8 1,328.2
Retained earnings 4,331.8 2,880.9
Other undenominated capital 3.5 3.5
Other reserves 570.3 1,325.9
------------- ------------
Shareholders' equity 6,292.3 5,545.3
------------- ------------
Total liabilities and shareholders'
equity 15,760.9 15,149.8
------------- ------------
Ryanair Holdings plc and Subsidiaries
Condensed Consolidated Interim Income Statement for the quarter
ended December 31, 2022 (unaudited)
Pre-Except. Except. IFRS IFRS
Quarter Quarter Quarter Quarter
Pre- Ended Ended Ended Ended
Except. Dec 31, Dec 31, Dec 31, Dec 31,
Change 2022 2022 2022 2021
Note % EURM EURM EURM EURM
Operating revenues
Scheduled revenues +84% 1,446.6 - 1,446.6 788.1
Ancillary revenues +27% 865.5 - 865.5 681.8
---------- ----------------- --------- -------------- ---------
Total operating revenues 7 +57% 2,312.1 - 2,312.1 1,469.9
---------- ----------------- --------- -------------- ---------
Operating expenses
Fuel and oil -52% 904.8 10.3 915.1 596.9
Staff costs -52% 293.0 - 293.0 193.0
Airport and handling charges -14% 286.5 - 286.5 250.6
Depreciation -10% 212.7 - 212.7 193.6
Route charges -18% 200.5 - 200.5 169.7
Marketing, distribution and
other -40% 160.1 - 160.1 114.2
Maintenance, materials and
repairs -35% 92.8 - 92.8 68.6
Total operating expenses -36% 2,150.4 10.3 2,160.7 1,586.6
Operating profit/(loss) 161.7 (10.3) 151.4 (116.7)
Other income/(expenses)
Net finance expense +75% (5.9) - (5.9) (24.0)
Foreign exchange 67.3 - 67.3 7.9
----------------- --------- -------------- ---------
Total other income/(expenses) 61.4 - 61.4 (16.1)
----------------- --------- -------------- ---------
Profit/(loss) before tax 223.1 (10.3) 212.8 (132.8)
Tax (expense)/credit on profit/(loss) 4 (12.0) 1.3 (10.7) 37.0
----------------- --------- -------------- ---------
Profit/(loss) for the quarter -
all attributable to equity holders
of parent 211.1 (9.0) 202.1 (95.8)
----------------- --------- -------------- ---------
Earnings/(loss) per ordinary
share (EUR)
Basic 0.1776 (0.0847)
Diluted 0.1773 (0.0847)
Weighted avg. no. of ord.
shares (in Ms)
Basic 1,138.0 1,131.3
Diluted 1,139.7 1,131.3
----------------- --------- -------------- ---------
*'+' is favourable and '-' is adverse period-on-period.
Ryanair Holdings plc and Subsidiaries
Condensed Consolidated Interim Income Statement for the nine
months ended December 31, 2022 (unaudited)
Pre-Except. Except. IFRS IFRS
Nine Months Nine Nine Nine
Ended Months Months Months
Pre- Dec 31, Ended Ended Ended
Except. Dec 31, Dec 31, Dec 31,
Change 2022 2022 2022 2021
Note % EURM EURM EURM EURM
Operating revenues
Scheduled revenues +185% 5,871.4 - 5,871.4 2,061.4
Ancillary revenues +96% 3,056.8 - 3,056.8 1,563.4
--------- ------------ --------- --------- -----------
Total operating
revenues 7 +146% 8,928.2 - 8,928.2 3,624.8
--------- ------------ --------- --------- -----------
Operating expenses
Fuel and oil -135% 3,081.9 133.0 3,214.9 1,310.0
Airport and
handling charges -67% 979.4 - 979.4 587.5
Staff costs -77% 876.7 - 876.7 496.1
Route charges -76% 703.9 - 703.9 399.7
Depreciation -26% 665.8 - 665.8 529.8
Marketing,
distribution and
other -87% 527.5 - 527.5 282.5
Maintenance,
materials and
repairs -57% 293.1 - 293.1 186.4
Total operating
expenses -88% 7,128.3 133.0 7,261.3 3,792.0
Operating
profit/(loss) 1,799.9 (133.0) 1,666.9 (167.2)
Other
(expenses)/income
Net finance
expense +39% (42.1) - (42.1) (68.7)
Foreign exchange 10.8 - 10.8 3.2
------------ --------- --------- -----------
Total other
(expenses)/income (31.3) - (31.3) (65.5)
------------ --------- --------- -----------
Profit/(loss)
before tax 1,768.6 (133.0) 1,635.6 (232.7)
Tax
(expense)/credit
on profit/(loss) 4 (186.7) 16.6 (170.1) 89.3
Profit/(loss) for the nine
months
- all attributable to
equity holders
of parent 1,581.9 (116.4) 1,465.5 (143.4)
------------ --------- --------- -----------
Earnings/(loss)
per ordinary
share (EUR)
Basic 1.2899 (0.1270)
Diluted 1.2874 (0.1270)
Weighted avg. no.
of ord.
shares (in Ms)
Basic 1,136.1 1,129.4
Diluted 1,138.3 1,129.4
------------ --------- --------- -----------
*'+' is favourable and '-' is adverse period-on-period.
Ryanair Holdings plc and Subsidiaries
Condensed Consolidated Interim Statement of Comprehensive Income
for the quarter ended December 31, 2022 (unaudited )
Quarter Quarter
Ended Ended
Dec 31, Dec 31,
2022 2021
EURM EURM
Profit/(loss) for the quarter 202.1 (95.8)
---------- ---------
Other comprehensive (loss)/income:
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 (591.3) 55.7
---------- ---------
Other comprehensive (loss)/income for the
quarter, net of income tax (591.3) 55.7
---------- ---------
Total comprehensive (loss) for the quarter
- all attributable to equity holders of parent (389.2) (40.1)
---------- ---------
Ryanair Holdings plc and Subsidiaries
Condensed Consolidated Interim Statement of Comprehensive Income
for the nine months ended December 31, 2022 (unaudited )
Nine Months Nine Months
Ended Ended
Dec 31, Dec 31,
2022 2021
EURM EURM
Profit/(loss) for the nine months 1,465.5 (143.4)
------------ --------------
Other comprehensive (loss)/income:
Items that are or may be reclassified subsequently
to profit or loss:
Movements in hedging reserve, net of tax:
------------ --------------
Net movements in cash-flow hedge reserve (761.5) 380.0
------------ --------------
Other comprehensive (loss)/income for the
nine months, net of income tax (761.5) 380.0
------------ --------------
Total comprehensive income for the nine
months - all attributable to equity holders
of parent 704.0 236.6
------------ --------------
Ryanair Holdings plc and Subsidiaries
Condensed Consolidated Interim Statement of Cash Flows for the
nine months ended December 31, 2022 (unaudited)
Nine Months Nine Months
Ended Ended
Dec 31, Dec 31,
2022 2021
Note EURM EURM
Operating activities
Profit/(loss) after tax 1,465.5 (143.4)
Adjustments to reconcile profit/(loss) after
tax to net cash from operating activities
Depreciation 665.8 529.8
(Increase) in inventories (0.2) (0.4)
Tax expense/(credit) on profit/(loss) 170.1 (89.3)
Share based payments 11.3 7.7
Decrease/(increase) in trade receivables 4.7 (2.0)
(Increase) in other assets (420.6) (165.5)
(Decrease)/increase in trade payables (22.6) 253.2
(Decrease)/increase in accrued expenses (376.1) 512.6
Increase in provisions 60.1 18.1
Increase in finance income 7.3 -
Decrease/(increase) in finance expense 4.7 (24.2)
Foreign exchange and fair value* 147.2 -
Income tax received 1.8 10.0
------------ ------------
Net cash inflow from operating activities 1,719.0 906.6
------------ ------------
Investing activities
Capital expenditure - purchase of property,
plant and equipment (1,270.5) (783.4)
Disposal proceeds 4.9 69.3
Supplier reimbursements 8 127.5 113.9
Decrease in restricted cash - 11.4
(Increase)/decrease in financial assets:
cash > 3 months (834.9) 465.5
------------ ------------
Net cash (used in) investing activities (1,973.0) (123.3)
------------ ------------
Financing activities
Net proceeds from shares issued 10 31.7 37.6
Proceeds from long-term borrowings - 1,192.0
Repayments of long-term borrowings (144.3) (1,677.5)
Lease liabilities paid (35.5) (39.7)
------------ ------------
Net cash (used in) financing activities (148.1) (487.6)
------------ ------------
(Decrease)/increase in cash and cash equivalents (402.1) 295.7
Net foreign exchange differences 12.6 11.2
------------ ------------
Cash and cash equivalents at beginning of
the period 2,669.0 2,650.7
------------ ------------
Cash and cash equivalents at end of the period 9 2,279.5 2,957.6
------------ ------------
Included in the cash flows from operating activities
for the nine
months are the following amounts:
Interest income received 22.7 -
Interest income paid (59.5) (66.9)
*Includes an exceptional loss of EUR133.0M 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, 2022
(unaudited)
Issued Share Other Other
Ordinary Share Premium Retained Undenom. Reserves Other
Shares Capital Account Earnings Capital Hedging Reserves Total
M EURM EURM EURM EURM EURM EURM EURM
Balance at March 31,
2021 1,128.1 6.7 1,161.6 3,232.3 3.5 211.3 31.2 4,646.6
----------- --------- --------- ----------- ---------- ---------- ----------- --------
Loss for the nine
months - - - (143.4) - - - (143.4)
Other comprehensive
income
Net movements in cash
flow reserve - - - - - 380.0 - 380.0
----------- --------- --------- ----------- ---------- ---------- ----------- --------
Total other
comprehensive
income - - - - - 380.0 - 380.0
----------- --------- --------- ----------- ---------- ---------- ----------- --------
Total comprehensive
income - - - (143.4) - 380.0 - 236.6
----------- --------- --------- ----------- ---------- ---------- ----------- --------
Transactions with
owners
of the Company
recognised
directly in equity
Issue of ordinary
equity
shares 5.0 0.1 37.5 - - - - 37.6
Share-based payments - - - - - - 7.7 7.7
Transfer of exercised
and expired share
based
awards - - - 6.8 - - (6.8) -
----------- --------- --------- ----------- ---------- ---------- ----------- --------
Balance at December
31, 2021 1,133.1 6.8 1,199.1 3,095.7 3.5 591.3 32.1 4,928.5
----------- --------- --------- ----------- ---------- ---------- ----------- --------
Loss for the three
months - - - (97.4) - - - (97.4)
Other comprehensive
income
Net movements in cash
flow reserve - - - - - 704.1 - 704.1
----------- --------- --------- ----------- ---------- ---------- ----------- --------
Total other
comprehensive
income - - - - - 704.1 - 704.1
----------- --------- --------- ----------- ---------- ---------- ----------- --------
Total comprehensive
income - - - (97.4) - 704.1 - 606.7
----------- --------- --------- ----------- ---------- ---------- ----------- --------
Transactions with
owners
of the Company
recognised
directly in equity
Issue of ordinary
equity
shares 1.5 - 74.7 (65.5) - - - 9.2
Additional share
premium
on the allotment of
shares - - 54.4 (54.4) - - - -
Share-based payments - - - - - - 0.9 0.9
Transfer of exercised
and expired share
based
awards - - - 2.5 - - (2.5) -
----------- --------- --------- ----------- ---------- ---------- ----------- --------
Balance at March 31,
2022 1,134.6 6.8 1,328.2 2,880.9 3.5 1,295.4 30.5 5,545.3
----------- --------- --------- ----------- ---------- ---------- ----------- --------
Profit for the nine
months - - - 1,465.5 - - - 1,465.5
Other comprehensive
income
Net movements in cash
flow reserve - - - - - (761.5) - (761.5)
----------- --------- --------- ----------- ---------- ---------- ----------- --------
Total other
comprehensive
loss - - - - - (761.5) - (761.5)
----------- --------- --------- ----------- ---------- ---------- ----------- --------
Total comprehensive
income - - - 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 4,331.8 3.5 533.9 36.4 6,292.3
----------- --------- --------- ----------- ---------- ---------- ----------- --------
Ryanair Holdings plc and Subsidiaries
MD&A Quarter ended December 31, 2022
Introduction
In the comparative quarter ended December 31, 2021 the Covid
Omicron variant led to travel restrictions and significantly
weakened (higher yielding) close-in Christmas and New Year
bookings. The following discussion should be read in that
context.
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 three months ended
December 31, 2022 results excluding the exceptional item referred
to below.
The Group, as part of its risk management strategy, has utilised
jet fuel call options to set a maximum price for approximately 16%
of FY23 expected fuel requirements. These instruments are measured
at fair value through the income statement. Following the Russian
invasion of Ukraine in February 2022, the price of jet fuel
significantly increased and remains volatile. An exceptional
unrealised mark-to-market loss of EUR9M (post-tax) was recorded on
the Group's jet fuel call options in the quarter.
Income Statement
Scheduled revenues:
Scheduled revenues increased by 84 % to EUR1.45BN due to a 24%
increase in traffic, from 31.1M to 38.4M and 48% higher average
fares (a 14% increase on the same period pre Covid-19).
Ancillary revenues:
Ancillary revenues increased by 27% to EUR866M as traffic grew
(up 24%) and guests increasingly choose discretionary services such
as priority boarding, reserved seating and in-flight sales.
Total revenues:
As a result of the above, total revenues rose 57% to
EUR2.31BN.
Operating Expenses:
Fuel and oil:
Fuel and oil increased by 52% to EUR905M due to a 12% increase
in sectors and significantly higher jet fuel prices offset by fuel
burn savings on the new B737-8200 aircraft.
Airport and handling charges:
Airport and handling charges rose by 14% to EUR287M, well below
the 24% increase in traffic.
Staff costs:
Staff costs increased by 52% to EUR293M due to the larger fleet
and ramp up of activities, accelerated pay restoration during the
period and the absence of Covid-19 payroll support schemes in the
period.
Route charges:
Route charges increased by 18% to EUR201M, ahead of the 12%
increase in sectors, due to higher Eurocontrol and ATC rates.
Depreciation:
Depreciation increased by 10% to EUR213M, primarily due to
higher amortisation resulting from increased aircraft utilisation
(as sectors rose by 12%) and the delivery of 39 new Boeing 737-8200
"Gamechanger" aircraft.
Marketing, distribution and other:
Marketing, distribution and other rose by 40% to EUR160M due to
higher activity (including increased in-flight sales and credit
card transactions).
Maintenance, materials and repairs:
Maintenance, materials and repairs increased by 35% to EUR93M
due to higher aircraft utilisation and the extension of 24 A320
aircraft leases earlier this year.
Other income/(expenses):
Net finance expenses decreased 75% to EUR6M due to rising
deposit interest rates, higher cash balances and lower net debt (at
mainly fixed interest rates). Foreign exchange translation
benefitted from a weaker EUR/US$ exchange rate in the period,
reversing H1's negative currency charge on balance sheet
revaluations.
Balance sheet:
Gross cash increased by EUR445M to EUR4.07BN at December 31,
2022.
Gross debt decreased by EUR48M to EUR5.03BN, primarily due to
debt repayments during the period, offset by the extension of 24
A320 leases.
Net debt was EUR0.96M at December 31, 2022. This is a EUR0.49BN
reduction from EUR1.45BN at March 31, 2022, despite Capex of
EUR1.27BN year-to-date.
Shareholders' equity:
Shareholders' equity increased by EUR747M to EUR6.29BN in the
period primarily due to a EUR1.47BN net profit (year-to-date) and
an IFRS hedge accounting unrealised loss for derivatives of
EUR762M.
Ryanair Holdings plc and Subsidiaries
MD&A Nine Months Ended December 31, 2022
Introduction
Traffic during the prior period comparative (nine months ended
December 31, 2021) improved following the rollout of EU Digital
Covid Certificates in July, 2021 however the Group still
experienced a significant reduction in traffic as a result of
European Government's Covid-19 travel restrictions/lockdowns.
Sectors (+65%) and traffic (+90%) are therefore significantly
higher in the nine months ended December 31, 2022. The following
discussion should be read in that context.
For the purposes of the Management Discussion and Analysis
("MD&A"), all figures and comments are by reference to the nine
months ended December 31, 2022 results excluding the exceptional
item referred to below.
The Group, as part of its risk management strategy, has utilised
jet fuel call options to set a maximum price for approximately 16%
of FY23 expected fuel requirements. These instruments are measured
at fair value through the income statement. Following the Russian
invasion of Ukraine in February 2022, the price of jet fuel
significantly increased and remains volatile. An exceptional
unrealised mark-to-market loss of EUR116M (post-tax) was recorded
on the Group's jet fuel call options for the nine months ended
December 31, 2022. This is effectively an unwind of the unrealised
mark-to-market gain recorded at the year ended March 31, 2022
(EUR114M post-tax).
Income Statement
Scheduled revenues:
Scheduled revenues increased by 185% to EUR5.87BN due to a 90%
increase in traffic, from 70.2M to 133.5M and 50% higher average
fares (a 9% increase on the same nine months pre Covid-19).
Ancillary revenues:
Ancillary revenues increased by 96% to EUR3.06BN as traffic grew
(up 90%) and guests increasingly choose discretionary services such
as priority boarding, reserved seating and in-flight sales.
Total revenues:
As a result of the above, total revenues rose 146% to
EUR8.93BN.
Operating Expenses:
Fuel and oil:
Fuel and oil increased by 135% to EUR3.08BN due to a 65%
increase in sectors flown and significantly higher jet fuel prices
offset by fuel burn savings on the new B737-8200 aircraft.
Airport and handling charges:
Airport and handling charges rose by 67% to EUR979M, well below
the 90% increase in traffic.
Staff costs:
Staff costs increased by 77% to EUR877M due to the larger fleet,
the ramp up of activities, accelerated pay restoration during the
period and the roll-off of Covid-19 payroll support schemes.
Route charges:
Route charges increased by 76% to EUR704M, ahead of the 65%
increase in sectors, due to an increase in Eurocontrol and ATC
rates (despite a degradation in the quality of the services
provided by ATC agencies during the period, particularly during
peak Summer 2022).
Depreciation:
Depreciation increased by 26% to EUR666M, primarily due to
higher amortisation resulting from increased aircraft utilisation
(as sectors rose 65%) and the delivery of 39 new Boeing 737-8200
"Gamechanger" aircraft.
Marketing, distribution and other:
Marketing, distribution and other rose by 87% to EUR528M due to
higher activity (including increased in-flight sales and credit
card transactions).
Maintenance, materials and repairs:
Maintenance, materials and repairs increased by 57% to EUR293M
due to higher aircraft utilisation and the extension of 24 A320
aircraft leases during the period.
Other (expenses)/income:
Net finance expenses decreased 39% to EUR42M due to rising
deposit interest rates, higher cash balances and lower net debt (at
mainly fixed interest rates). Movements in foreign exchange
translation reflect changes primarily in the movement of the
EUR/US$ exchange rate on balance sheet revaluations.
Ryanair Holdings plc and Subsidiaries
Interim Management Report
Introduction
This financial report for the nine months ended December 31,
2022 meets the reporting requirements pursuant to the Transparency
(Directive 2004/109/EC) Regulations 2007 and Transparency Rules of
the Central Bank of Ireland.
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 months ended December 31,
2022 compared to the nine months ended December 31, 2021, 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
The Group's recovery remains fragile and prone to shocks from
any adverse Covid-19 developments. The full extent of such
developments on the Group's longer-term operational and financial
performance, many of which may be outside of the Group's control,
are highly uncertain and cannot be predicted.
Russia's invasion of Ukraine in February 2022, and the
subsequent spike in oil prices, has created another unexpected
development which will overhang our industry until it is
resolved.
Among other 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, fuel costs, 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 Group's Board of Directors are set
forth on page 17 of the Group's 2022 annual report. Julie O'Neill
retired from the Board in September 2022, and Anne Nolan was
appointed to the Board in December 2022.
Following extensive engagement with larger shareholders, the
Board agreed a contract extension which will see Michael O'Leary
remain as Group CEO until the end of July 2028 (previously July
2024).
Related party transactions - Please see note 11.
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 (pre-exceptional items) of EUR1.58BN
in the nine months ended December 31, 2022;
-- The Group's liquidity, with EUR4.07BN cash at December 31,
2022, a EUR0.49BN reduction in net debt during the period (despite
EUR1.27BN in Capex) and the Group's continued focus on cash
management;
-- The Group's solid BBB credit ratings combined with a positive
outlook (from both S&P and Fitch Ratings);
-- The Group's strong balance sheet position with approximately
96% of its B737 fleet unencumbered;
-- The Group's access to the debt capital markets,
unsecured/secured bank debt and sale and lease back
transactions;
-- Strong cost control across the Group;
-- The Group's fuel hedging position (FY23 fuel requirements are
over 80% hedged and approximately 60% of FY24 jet fuel requirements
are hedged); 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 significant accounting policies
Ryanair Holdings plc (the "Company") is a company domiciled in
Ireland. The unaudited condensed consolidated interim financial
statements of the Company for the nine months ended December 31,
2022 comprise 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 2022 Annual Report for the year ended
March 31, 2022, 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, 2022, 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 and leaseback transactions, secured and unsecured
debt structures, 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, 2022 figures and the December 31, 2021
comparative figures 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, 2022, together with the independent auditor's
report thereon, were filed with the Irish Registrar of Companies
following the Company's Annual General Meeting and are also
available on the Company's Website. The auditor's report on those
financial statements was unqualified.
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, 2022 on
January 27, 2023.
Except as stated otherwise below, this period's financial
information has 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. These standards are effective for the
first time for the Group's financial year beginning on April 1,
2022 and therefore have been applied by the Group in these
condensed consolidated interim financial statements:
-- Amendments to IFRS 3 Business Combinations; IAS 16 Property,
Plant and Equipment; IAS 37 Provisions, Contingent Liabilities and
Contingent Assets; and Annual Improvements 2018-2020 (effective for
periods starting on or after January 1, 2022).
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, 2022.
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 the other new or revised standards
and interpretations will have any or a material impact on our
financial position or performance:
-- 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).
-- 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)*.
-- IFRS 17 Insurance Contracts (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 IFRS 16 Leases: Lease Liability in a Sale and
Leaseback (effective on or after January 1, 2024)*.
* These standards or amendments to standards are not as of yet
EU endorsed.
2. Judgements and estimates
In preparing these condensed interim financial statements,
management has made judgements and estimates that affect the
application of accounting policies and the reported amounts of
assets and liabilities, income and expense. Actual results may
differ from these estimates.
In preparing these condensed consolidated interim financial
statements, the significant judgements and key sources of
estimation uncertainty were the same as those that applied in the
most recent published consolidated financial statements.
Derivative financial instruments
The Group uses various derivative financial instruments to
manage its exposure to market risks, including the risks relating
to fluctuations in commodity prices and currency exchange rates.
Ryanair uses forward contracts for the purchase of its jet fuel
(jet kerosene) and carbon credit (Emission Trading Scheme)
requirements to reduce its exposure to commodity price risk. It
also uses foreign currency forward contracts to reduce its exposure
to risks related to foreign currencies, principally the U.S. dollar
exposure associated with the purchase of new Boeing 737-8200
aircraft and the U.S. dollar exposure associated with the purchase
of jet fuel.
The Group's derivative financial instruments are measured at
fair value and recognised as either assets or liabilities in its
consolidated balance sheet. All derivatives, with the exception of
jet fuel call options, are designated as cash flow hedges with the
resulting gains or losses taken to other reserves. Jet fuel call
options are measured at fair value with the resulting unrealised
gains or losses taken to the income statement. At December 31,
2022, a net asset of EUR162M (2021: net asset of EUR300M) was
recognised on balance sheet in respect of the Group's jet fuel
forward contracts, jet fuel call options, foreign currency
derivative instruments associated with future jet fuel purchases
and carbon credits and a net asset of EUR357M (2021: net asset
EUR276M) was recognised in respect of its foreign currency
derivative instruments associated with future aircraft
purchases.
In determining the hedge effectiveness of derivative instruments
used to hedge Ryanair's fuel requirements, there is significant
judgement involved in assessing whether the volumes of jet fuel
hedged are still expected to be highly probable forecast
transactions. Specifically, significant judgement is required in
respect of the assumptions related to the expected recovery of
passenger demand and the subsequent flight schedules following the
Covid-19 pandemic along with the potential for travel restrictions
to be reimposed. All these assumptions impact upon forecast fuel
consumption, and minor changes to these assumptions could have a
significant effect on the assessment of hedge effectiveness.
In respect of foreign currency hedge effectiveness for future
aircraft purchases, there is a high degree of judgement involved in
assessing whether the future aircraft payments are still considered
highly probable of occurring, and the timing of these future
payments for aircraft. The timing of future payments for aircraft
is dependent on the aircraft manufacturer's ability to meet
forecast aircraft delivery schedules.
As at December 31, 2022 the Group had entered into forward jet
fuel hedging contracts covering approximately 65% of its estimated
requirements for fiscal year 2023 (with a further 16% covered by
jet fuel call options) and approximately 60% of its estimated
requirements for fiscal year 2024. The Group believes these hedges
(excluding the jet fuel call options) to be effective for hedge
accounting purposes.
Long-lived assets - Useful lives, residual values and
impairment
At December 31, 2022, the Group had EUR9.65BN of property, plant
and equipment long-lived assets, of which EUR9.48BN were aircraft
and capitalised maintenance. In accounting for long-lived assets,
the Group must make estimates about the expected useful lives of
the assets, the expected residual values of the assets, the cost of
major airframe and engine overhaul.
In determining the useful lives and expected residual values of
the aircraft, and the cost of major airframe and engine overhaul,
the Group has based the estimates on a range of factors and
assumptions, including its own historic experience and past
practices of aircraft disposal and 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
the current market value of new Boeing 737 aircraft, and each
aircraft's useful life is determined to be 23 years. An element of
the cost of an acquired aircraft is attributed on acquisition to
its service potential, reflecting 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 life of the aircraft.
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.
The Group evaluates, at the end of each reporting period,
whether there is any indication that its long-lived assets may be
impaired. Factors that may indicate potential impairment include,
but are not limited to, significant decrease in the market value of
an aircraft based on observable information, a significant change
in an aircraft's physical condition and operating or cash flow
losses associated with the use 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
has traditionally resulted in higher revenues and profits.
4. Income tax expense
The Group's consolidated tax expense for the nine months ended
December 31, 2022 of EUR170M (December 31, 2021: EUR89M tax credit)
comprises a current tax charge of EUR19M and a deferred tax charge
of EUR151M primarily relating to the temporary differences for
property, plant and equipment and net operating losses. This
consolidated tax charge is the aggregation of separate tax charges
and tax credits on the profits earned and losses suffered by each
of the Group's operating companies calculated in accordance with
differing tax rules and rates applicable in each jurisdiction where
the Group operates. No significant or unusual tax charges or
credits arose during the period. The effective tax rate of 10% for
the nine months (December 31, 2021: 39%) 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, 2022 the Group had an operating fleet of 495
(2021: 455) Boeing 737 aircraft and 28 (2021: 29) 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, 2022 the Group had taken
delivery of 84 of these aircraft. The remaining aircraft are due to
be delivered before the end of fiscal year 2025.
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 Chief Operating Decision Maker (CODM).
The Group comprises five separate airlines, Buzz, Lauda Europe
(Lauda), Malta Air, Ryanair DAC and Ryanair UK Limited (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. Malta Air is reported as a
separate segment as it exceeded the applicable quantitative
thresholds for reporting purposes for the year ended March 31,
2022, and is included for comparative purposes. Buzz 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/(loss) 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:
Quarter Ended Ryanair
DAC Malta Air Other Airlines Elimination Total
Dec 31, Dec 31, Dec 31, Dec 31, Dec 31,
2022 2022 2022 2022 2022
EURM EURM EURM EURM EURM
Scheduled revenue 1,438.6 - 8.0 - 1,446.6
Ancillary revenue 865.5 - - - 865.5
Inter-segment revenue 190.8 220.6 97.3 (508.7) -
--------- ---------- --------------- ------------ ---------
Segment revenue 2,494.9 220.6 105.3 (508.7) 2,312.1
--------- ---------- --------------- ------------ ---------
Reportable segment
profit
after
income tax (i) 205.7 2.2 3.2 - 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 94.1 403.1 - 15,760.9
Segment liabilities 8,599.3 100.7 768.6 - 9,468.6
(i) Adjusted profit after tax in the three months to December
31, 2022, excludes a net exceptional loss after tax of EUR9.0M,
attributable to the fair value measurement of jet fuel call
options.
Ryanair
Quarter Ended DAC Malta Air Other Airlines Elimination Total
Dec 31, Dec 31, Dec 31, Dec 31, Dec 31,
2021 2021 2021 2021 2021
EURM EURM EURM EURM EURM
Scheduled revenue 783.9 - 4.2 - 788.1
Ancillary revenue 681.8 - - - 681.8
Inter-segment revenue 179.3 139.2 110.2 (428.7) -
--------- ---------- --------------- ------------ ---------
Segment revenue 1,645.0 139.2 114.4 (428.7) 1,469.9
--------- ---------- --------------- ------------ ---------
Reportable segment (loss)/profit
after
income tax (75.6) (20.7) 0.5 - (95.8)
--------- ---------- --------------- ------------ ---------
Other segment information:
Depreciation 178.2 - 15.4 - 193.6
Net finance expense 23.1 - 0.9 - 24.0
Capital expenditure 441.4 - 1.6 - 443.0
Segment assets 12,865.9 56.9 215.4 - 13,138.2
Segment liabilities 7,548.0 69.7 592.0 - 8,209.7
Ryanair
Nine Months Ended DAC Malta Air Other Airlines Elimination Total
Dec 31, Dec 31, Dec 31, Dec 31, Dec 31,
2022 2022 2022 2022 2022
EURM EURM EURM EURM EURM
Scheduled revenue 5,785.2 - 86.2 - 5,871.4
Ancillary revenue 3,056.8 - - - 3,056.8
Inter-segment revenue 572.4 638.1 329.1 (1,539.6) -
--------- ---------- --------------- ------------ ---------
Segment revenue 9,414.4 638.1 415.3 (1,539.6) 8,928.2
--------- ---------- --------------- ------------ ---------
Reportable segment
profit
after
income tax (i) 1,549.2 7.1 25.6 - 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 94.1 403.1 - 15,760.9
Segment liabilities 8,599.3 100.7 768.6 - 9,468.6
(i) Adjusted profit after tax in the nine months ended December
31, 2022, excludes a net exceptional loss after tax of EUR116.4M,
attributable to the fair value measurement of jet fuel call
options.
Ryanair
Nine Months Ended DAC Malta Air Other Airlines Elimination Total
Dec 31, Dec 31, Dec 31, Dec 31, Dec 31,
2021 2021 2021 2021 2021
EURM EURM EURM EURM EURM
Scheduled revenue 2,025.3 - 36.1 - 2,061.4
Ancillary revenue 1,563.4 - - - 1,563.4
Inter-segment revenue 511.9 504.5 295.0 (1,311.4) -
--------- ---------- --------------- ------------ ---------
Segment revenue 4,100.6 504.5 331.1 (1,311.4) 3,624.8
--------- ---------- --------------- ------------ ---------
Reportable segment (loss)/profit
after income tax (156.1) 8.9 3.8 - (143.4)
--------- ---------- --------------- ------------ ---------
Other segment information:
Depreciation 485.6 - 44.2 - 529.8
Net finance expense 65.9 - 2.8 - 68.7
Capital expenditure 994.7 - 3.5 - 998.2
Segment assets 12,865.9 56.9 215.4 - 13,138.2
Segment liabilities 7,548.0 69.7 592.0 - 8,209.7
The following table disaggregates revenue by primary
geographical market. In accordance with IFRS 8, revenue by country
of origin 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 countries" includes all
other countries in which the Group has operations.
Nine Months Nine Months Quarter Quarter
Ended Ended Ended Ended
Dec 31, Dec 31, Dec 31, Dec 31,
2022 2021 2022 2021
EURM EURM EURM EURM
Italy 1,998.0 897.7 501.1 360.5
Spain 1,601.3 666.4 399.1 258.4
United Kingdom 1,301.1 408.6 351.8 186.0
Ireland 522.5 159.4 142.8 77.2
Other 3,505.3 1,492.7 917.3 587.8
------------ ------------ --------- ---------
Total revenue 8,928.2 3,624.8 2,312.1 1,469.9
------------ ------------ --------- ---------
Ancillary revenues comprise of revenues from non-flight
scheduled operations, in-flight sales and Internet related
services. Non-flight scheduled revenue arises from the sale of
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 and right of use assets
Acquisitions and disposals
During the nine months ended December 31, 2022, net capital
additions amounted to EUR1.19BN principally reflecting aircraft
deliveries in the period, aircraft pre-delivery deposits and
capitalised maintenance offset by supplier reimbursements of
approximately EUR128M. Right of Use assets (reflecting A320
aircraft operating lease extensions) increased by EUR87M in the
period.
9. 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
2022 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, 2022 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: T he fair value of jet
fuel call options is determined based on market accepted valuation
techniques, primarily Black-Scholes modelling (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 period
ended December 31, 2022, 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, 2022
to arrive at a fair value representing the amount payable to a
third party to assume the obligations.
As at the end of the third quarter of fiscal year 2023, the
future outlook for the business is such that there has been no
material change to the fair values of financial assets and
financial liabilities.
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 At Mar
31, At Dec 31, At Mar 31, 31,
2022 2022 2022 2022
Carrying Fair Carrying Fair
Amount Value Amount Value
--------- ----------- ----------- --------
Non-current financial assets EURM EURM EURM EURM
Derivative financial instruments:
- U.S. dollar currency forward
contracts 109.5 109.5 160.4 160.4
- Jet fuel & carbon derivative
forward contracts - - 22.2 22.2
- Interest rate swaps 2.0 2.0 2.5 2.5
--------- ----------- ----------- --------
111.5 111.5 185.1 185.1
Current financial assets
Derivative financial instruments:
- U.S. dollar currency forward
contracts 300.4 300.4 313.7 313.7
- Jet fuel options 7.8 7.8 150.5 150.5
- Jet fuel & carbon derivative
forward contracts 247.7 247.7 934.1 934.1
- Interest rate swaps 2.4 2.4 2.1 2.1
--------- ----------- ----------- --------
558.3 558.3 1,400.4 1,400.4
Trade receivables* 38.8 43.5
Cash and cash equivalents* 2,279.5 2,669.0
Financial asset: cash > 3 months* 1,769.0 934.1
Restricted cash* 22.7 22.7
--------- ----------- ----------- --------
4,668.3 558.3 5,069.7 1,400.4
--------- ----------- ----------- --------
Total financial assets 4,779.8 669.8 5,254.8 1,585.5
--------- ----------- ----------- --------
At Dec At Mar
31, At Dec 31, At Mar 31, 31,
2022 2022 2022 2022
Carrying Fair Carrying Fair
Amount Value Amount Value
--------- ----------- ----------- --------
Non-current financial liabilities EURM EURM EURM EURM
Derivative financial instruments:
- Jet fuel & carbon derivative
forward contracts 39.0 39.0 - -
- U.S. dollar currency forward
contracts 7.0 7.0 - -
46.0 46.0 - -
Non-current maturities of debt:
- Long-term debt 836.4 836.4 924.8 927.1
- Bonds 2,043.0 1,897.5 2,789.8 2,792.1
--------- ----------- ----------- --------
2,879.4 2,733.9 3,714.6 3,719.2
Trade payables 16.7 16.7 49.2 49.2
--------- ----------- ----------- --------
2,942.1 2,796.6 3,763.8 3,768.4
--------- ----------- ----------- --------
Current financial liabilities
Derivative financial instruments:
- Jet fuel & carbon derivative
forward contracts 70.8 70.8 7.6 7.6
- U.S. dollar currency forward
contracts 17.2 17.2 31.0 31.0
--------- ----------- ----------- --------
88.0 88.0 38.6 38.6
Current maturities of debt:
- Short-term debt 98.7 98.8 152.1 152.1
- Promissory notes 233.6 233.6 225.9 225.9
- Bonds 1,596.5 1,588.6 846.5 855.0
--------- ----------- ----------- --------
1,928.8 1,921.0 1,224.5 1,233.0
Trade payables* 1,174.0 1,029.0
Accrued expenses* 1,234.7 953.0
--------- ----------- ----------- --------
4,425.5 2,009.0 3,245.1 1,271.6
--------- ----------- ----------- --------
Total financial liabilities 7,367.6 4,805.6 7,008.9 5,040.0
--------- ----------- ----------- --------
*The fair value of each of these financial instruments
approximate their carrying values due to the short-term nature of
the instruments
During the year ended March 31, 2022, the Group issued
promissory notes with a cumulative value of EUR234M, that mature in
October 2023. These notes were issued in settlement of certain
aircraft trade payables and are non-interest bearing. The carrying
value of the promissory notes is not considered to be materially
different from its fair value.
10. Shareholders' equity and shareholders' returns
During the nine months ended December 31, 2022 4.1M ordinary
shares were issued at strike prices between EUR6.25 and EUR8.35 per
share following the exercise of vested options for total proceeds
of EUR32M. There were no shareholder returns during the nine months
ended December 31, 2022.
11. 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, 2022 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 2022 Annual Report that could have a material effect on the
financial position or performance of the Group in the same
period.
12. Post balance sheet events
There were no significant post balance sheet events.
[1] Sustainalytics - a leading independent ESG & corporate
governance research, ratings & analytics firm.
[2] Science Based Targets initiative - a collaboration between
CDP, the United Nations Global Compact, World Resources Institute
& the Worldwide Fund for Nature. It helps companies to set
emission reduction targets in line with climate science & the
Paris Agreement goals.
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January 30, 2023 02:00 ET (07:00 GMT)
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