TIDM0RYA TIDMRYA
RNS Number : 4011S
Ryanair Holdings PLC
06 November 2023
RYANAIR REPORTS STRONG HALF YEAR PROFITS OF EUR2.18BN
DUE TO RECORD SUMMER TRAFFIC
FULL YEAR PAT OF EUR10 PER PAX LIKELY - EUR400M DIV.
DECLARED
Ryanair Holdings today (6 Nov.) reported a strong half-year
profit of EUR2.18bn, compared to a prior year H1 PAT of EUR1.37bn,
thanks to a strong Easter in Q1, record summer traffic and higher
fares which offset significantly higher fuel costs in the half
year.
30 Sep. 30 Sep. Change
2022 2023
Customers 95.1m 105.4m +11%
------------- ---------- -------
Load Factor 94% 95% +1pt
------------- ---------- -------
Revenue EUR6.62bn EUR8.58bn +30%
------------- ---------- -------
Op. Costs EUR4.98bn(1) EUR6.16bn +24%
------------- ---------- -------
PAT EUR1.37bn(1) EUR2.18bn +59%
------------- ---------- -------
EPS EUR1.11 EUR1.91 +72%
------------- ---------- -------
H1 highlights:
-- Traffic grew 11% to 105.4m (95% load factor).
-- Rev. per pax +17% (ave. fares +24% & ancil. rev. +3%).
-- 3 new bases & 194 new routes in S.23.
-- 124x B737 "Gamechangers". Total fleet of 563 aircraft at 30 Sep.
-- Fuel bill rose EUR0.6bn (+29%) to EUR2.8bn.
-- Fuel hedging extended - c.85% FY24 at $89bbl & over 50% FY25 at $79bbl.
-- Net cash of EUR0.84bn (31 Mar. EUR0.56bn), over EUR1bn debt repaid.
-- 300x Boeing MAX-10 order underpins growth decade to 300m pax p.a. by FY34.
-- EUR400m maiden div. & div. policy announced.
Ryanair's Michael O'Leary, said:
ENVIRONMENT:
"Ryanair is one of the most environmentally efficient major EU
airlines. With a young fleet and high load factors, our CO2 per
pax/km is just 65 grams. We invest heavily in new, more efficient,
technology. In H1 we took delivery of 26, new, B737-8200
"Gamechangers" (4% more seats, 16% less fuel & CO2). We're
accelerating the retro-fit of scimitar winglets to almost 130
B737NGs (target 409 by 2026), reducing fuel burn by 1.5% and
lowering noise emissions by a further 6%. We are working with fuel
partners to accelerate SAF supply and are on track to achieve the
Group's ambitious 2030 goal of powering 12.5% of Ryanair flights
with SAF (9.5% already secured).
The urgent reform of Europe's inefficient ATC system is one of
the most significant environmental initiatives the EU can deliver.
In 2023, French ATC has (so far) inflicted over 60 days of strikes
on our sector, during which the French Govt. use minimum service
laws to protect local/domestic flights while disproportionately
cancelling overflights. In Sep., we delivered a petition (signed by
1.5m customers) calling on the EC to protect the single market for
air travel by protecting overflights (while respecting ATC Unions
right to strike), as is already the case in Greece, Italy and
Spain. Sadly, we have yet to see any action from President Ursula
von der Leyen on this key environmental initiative.
Our recent order for 300 Boeing MAX-10 aircraft (21% more seats,
20% less fuel & CO2 and 50% quieter), enabled us to reset the
Group's environmental targets as we strive to more sustainably grow
traffic to 300m p.a. by FY34. In H1, we set a very ambitious target
of 50 grams of CO2 per pax/km by FY31 (previously 60 grams by FY30)
and published Ryanair's 1.5 degree Climate Transition Plan.
SOCIAL:
We expect to create over 10,000 new, well-paid, jobs for highly
trained aviation professionals as the Group expands our fleet to
800 aircraft by FY34. Building on the success of our aviation
training facilities in Dublin, Stansted, Bergamo and East Midlands,
we're opening 2 new excellence centres in Krakow and Madrid to
accelerate local crew training and development in those major
markets. Our recently announced engineering academy will support
1,000 apprentices annually as we train the next generation of
highly skilled mechanics and engineers. Ryanair Labs is also
growing at its dev. hubs in Dublin, Madrid, Portugal and Wroclaw to
support Ryanair's customer service, our efficiency and scalability
over the coming decade.
Ryanair's investment in resilience ahead of our S.23 schedule
(increased crew ratios, doubling the capacity of our Dublin and
Warsaw ops centres, enhanced day-of-travel app. and continuously
improving live customer comms.) ensured that our passengers and
crews could enjoy Ryanair's industry leading OTP and reliability,
despite significant ATC disruptions this year. This is reflected in
our strong H1 CSAT score of 84%, notwithstanding over 60 days of
French ATC strikes.
GROWTH & FLEET:
During S.23 we operated our largest ever schedule, including 3
new bases and over 190 new routes. We delivered record traffic
across peak summer months. This winter we'll operate 6 new bases
(Athens, Belfast, Copenhagen, Girona, Lanzarote & Tenerife),
and over 60 new routes including our first 17 routes to Albania. To
date over 90% of S.24 capacity is already on sale, including over
180 new routes.
While Boeing are currently suffering delivery delays with Spirit
(their fuselage supplier), we are working with them to minimise
delays ahead of peak S.24. At this stage, we are concerned that up
to 10 of our 57 contracted Gamechanger deliveries pre S.24 may be
delayed until winter 2024.
We expect European airlines will continue to consolidate over
the next 2-3 years, with the takeover of ITA (Italy) and the sale
of TAP (Portugal) and SAS (Scandinavia) already underway. While
Pratt & Whitney engine (GTF) issues and inspection programme
threaten to substantially curtail competitor and lessor capacity
between 2024 and 2026, the large backlog of OEM aircraft deliveries
is also likely to constrain capacity in Europe for the next 3 or 4
years. These capacity constraints, combined with our widening cost
advantage, our judicious fuel hedging, strong balance sheet,
low-cost aircraft orders and industry leading operational
resilience, creates significant traffic and profit growth
opportunities for Ryanair as we expand to carry 300m pax p.a. by
FY34.
H1 FY24 BUSINESS REVIEW:
Revenue & Costs
H1 scheduled revenues increased 37% to EUR6.1bn. Traffic grew
11% to 105.4m while ave. fares rose 24% to c.EUR58 due to a strong
Easter and record S.23 demand. Ancillary revenue increased 14% to
EUR2.5bn (c.EUR23.70 per passenger). Total H1 FY24 revenue
therefore rose 30% to EUR8.6bn. Total operating costs increased 24%
to EUR6.2bn, primarily due to much higher fuel costs (+29% to
EUR2.8bn), higher staff costs (reflecting pay restoration,
pre-agreed pay increases and higher crewing ratios as we invested
in ops. resilience) and higher ATC fees (incl. airport &
handling charges). Ryanair's cost advantage over most of its EU
competitors continues to widen, with H1 ex-fuel unit costs
finishing just under EUR32.
Our FY24 fuel requirements are almost 85% hedged at approx.
$89bbl (a mix of forwards and caps) while our FY25 hedging has
increased to just over 50% at approx. $79bbl. This will deliver
savings of approx. EUR300m on the fuel already hedged for FY25.
Over 90% of FY24 EUR/$ opex is hedged at 1.08 and almost 50% of
FY25 is hedged at 1.12. This strong hedge position leaves us very
well protected from recent short term fuel price volatility which
many competitors are more, or fully, exposed to.
Balance Sheet & Liquidity
Ryanair's balance sheet remains one of the strongest in the
industry with a BBB+ credit rating (both S&P and Fitch) and
over EUR3.6bn gross cash at period end, despite EUR1.6bn capex and
over EUR1bn debt repayments (incl. a maturing EUR750m bond &
EUR260m prepayment of our RCF in Aug.). Net cash was EUR0.84bn at
30 Sep. (EUR0.56bn at 31 Mar.). All of the Group's owned B737 fleet
(534 aircraft) are unencumbered, which significantly widens our
cost advantage over competitor airlines who are heavily exposed to
rising interest rates and rising aircraft lease costs.
CAPITAL ALLOCATION POLICY:
Our Board's strategy, as our business recovered from Covid, was
to firstly prioritise pay restoration and multi-year pay increases
for our people, something that has now been delivered over recent
quarters. Secondly, we are determined to pay down our remaining
debt as it matures between now and 2026. Closely aligned to this is
the Group's policy to prioritise growth opportunities to drive
shareholder value. This is achieved by maintaining a strong balance
sheet and investment grade rating; investing in growth (the
Gamechanger and MAX-10 orderbooks will deliver annual traffic of
300m by FY34) from internally generated cashflows; and shareholder
returns. Ryanair has an established track record of delivering
industry leading returns to shareholders. Between FY08 and FY20 we
returned EUR6.74bn to shareholders via share buybacks and special
dividends.
DIVID POLICY:
Ryanair's shareholders invested EUR400m in a share placing
during the peak of the Covid crisis in Sep. 2020, which was key to
Ryanair subsequently issuing a timely, low cost, EUR850m bond,
which helped the Group emerge from the Covid pandemic in a position
of unrivalled strategic and financial strength. The Board is
therefore pleased to declare a maiden ordinary dividend of EUR400m
(c.EUR0.35 per share) in aggregate through an interim and final
dividend of EUR200m each, payable in Feb. 2024 and after the AGM in
Sep. 2024 respectively.
For subsequent financial years (i.e. for FY25 onwards), under
the Group's new dividend policy, Ryanair plans to return approx.
25% of prior-year PAT (adjusted for non-recurring gains or losses)
by way of ordinary dividend to our shareholders. Additionally, the
Board, taking into account prevailing market conditions and
ensuring that the Group retains a prudent level of cash to fund
debt and capex requirements will retain the flexibility to
consider, when or if appropriate, the return of surplus cash to
shareholders through special dividends and/or share buybacks.
OUTLOOK:
We continue to target approx. 183.5m (+9%) FY24 traffic,
although the final figure depends on Boeing meeting their delivery
commitments between now and year-end. As previously guided, we
expect ex-fuel unit costs to increase by c.EUR2 this year, which
still widens the cost gap between Ryanair and competitor airlines
in Europe. Forward bookings (both traffic and fares) are robust
over the late Oct. mid-terms and into the peak Christmas travel
period. With the benefit of constrained EU capacity this winter
(Eurocontrol expect EU capacity to recover to only 94% of
pre-Covid) and the impact of P&W engine repairs on competitor
fleets, we currently expect Q3 ave. fares to be ahead of the prior
year Q3 by a mid teens percentage. Unhedged fuel costs, however,
are significantly higher making it unlikely that we'll replicate
last year's bumper Q3 performance. As is normal at this time of
year, we have very limited Q4 visibility. Q4 is traditionally our
weakest quarter and, this year, will be impacted by the partial
unwind of free ETS carbon credits (from Jan. 2024).
Despite uncertainty over Boeing deliveries, a significantly
higher full year fuel bill (up c.EUR1.3bn on last year), very
limited Q4 visibility and the risk of weaker consumer spending over
coming months, we now expect that FY24 PAT will finish in a range
of between EUR1.85bn to EUR2.05bn, assuming modest losses over the
H2 winter period. This guidance remains highly dependent on the
absence of any unforeseen adverse events (for example such as
Ukraine or Gaza) between now and the end of Mar. 2024."
S
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 3,000 daily
flights
from 92 bases, the Group connects almost 230 airports in 36 countries on a fleet of
565 aircraft,
with c.385 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 22,000 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.
For further information Neil Sorahan Paul Clifford
please contact: Ryanair Holdings plc Drury
www.ryanair.com Tel: +353-1-9451212 Tel: +353-1-260-5000
Notes:
1. Non-IFRS financial measure, excl. EUR107m 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.
Ryanair Holdings plc and Subsidiaries
Condensed Consolidated Interim Balance Sheet as at September 30,
2023 (unaudited)
At Sep At Mar
30, 31,
2023 2023
Note EURM EURM
Non-current assets
Property, plant and equipment 10,319.2 9,908.9
Right-of-use asset 187.7 209.1
Intangible assets 146.4 146.4
Derivative financial instruments 10 110.1 54.6
Deferred tax 5.8 6.6
Other assets 200.4 168.9
--------- ---------
Total non-current assets 10,969.6 10,494.5
--------- ---------
Current assets
Inventories 5.7 6.0
Other assets 1,074.4 878.6
Trade receivables 10 68.3 59.7
Derivative financial instruments 10 605.4 292.1
--------- ---------
Restricted cash 10 19.5 19.5
Financial assets: cash > 3 months 10 364.9 1,056.2
Cash and cash equivalents 10 3,260.5 3,599.3
--------- ---------
Total current assets 5,398.7 5,911.4
--------- ---------
Total assets 16,368.3 16,405.9
--------- ---------
Current liabilities
Provisions 25.8 19.8
Trade payables 10 982.3 1,065.5
Accrued expenses and other liabilities 3,318.6 4,783.5
Current lease liability 41.5 43.2
Current maturities of debt 10 35.3 1,056.7
Derivative financial instruments 10 64.8 386.6
Current tax 70.1 66.3
Total current liabilities 4,538.4 7,421.6
--------- ---------
Non-current liabilities
Provisions 173.2 154.5
Derivative financial instruments 10 1.1 11.2
Deferred tax 502.7 159.3
Non-current lease liability 147.4 163.1
Non-current maturities of debt 10 2,576.8 2,853.2
--------- ---------
Total non-current liabilities 3,401.2 3,341.3
--------- ---------
Shareholders' equity
Issued share capital 6.9 6.9
Share premium account 1,384.2 1,379.9
Other undenominated capital 3.5 3.5
Retained earnings 6,357.6 4,180.0
Other reserves 676.5 72.7
--------- ---------
Shareholders' equity 8,428.7 5,643.0
--------- ---------
Total liabilities and shareholders'
equity 16,368.3 16,405.9
--------- ---------
Ryanair Holdings plc and Subsidiaries
Condensed Consolidated Interim Income Statement for the
Half-Year Ended September 30, 2023 (unaudited)
IFRS Pre-Except. Except. IFRS
Half-Year Half-Year Half-Year Half-Year
Pre- Ended Ended Ended Ended
Except. Sep 30, Sep 30, Sep 30, Sep 30,
Change 2023 2022 2022 2022
Note % EURM EURM EURM EURM
Operating revenues
Scheduled revenues +37% 6,073.9 4,424.8 - 4,424.8
Ancillary revenues +14% 2,501.3 2,191.3 - 2,191.3
-------- ---------- ------------ ---------- ----------
Total operating revenues 7 +30% 8,575.2 6,616.1 - 6,616.1
-------- ---------- ------------ ---------- ----------
Operating expenses
Fuel and oil -29% 2,814.6 2,177.1 122.8 2,299.9
Airport and handling charges -24% 858.2 692.9 - 692.9
Staff costs -27% 742.9 583.7 - 583.7
Route charges -12% 561.9 503.4 - 503.4
Depreciation -23% 558.8 453.1 - 453.1
Marketing, distribution
and other -20% 440.5 367.4 - 367.4
Maintenance, materials
and repairs +9% 182.5 200.3 - 200.3
Total operating expenses -24% 6,159.4 4,977.9 122.8 5,100.7
Operating profit/(loss) +47% 2,415.8 1,638.2 (122.8) 1,515.4
Other income/(expenses)
Net finance income/(expense) 31.8 (36.2) - (36.2)
Foreign exchange 10.9 (56.5) - (56.5)
---------- ------------ ---------- ----------
Total other income/(expenses) 42.7 (92.7) - (92.7)
---------- ------------ ---------- ----------
Profit/(loss) before tax +59% 2,458.5 1,545.5 (122.8) 1,422.7
Tax (expense)/credit 4 (280.4) (174.7) 15.4 (159.3)
Profit/(loss) for the half-year
- all attributable
to equity holders of parent +59% 2,178.1 1,370.8 (107.4) 1,263.4
---------- ------------ ---------- ----------
Earnings per ordinary share
(EUR)
Basic 1.9126 1.1129
Diluted 1.9034 1.1101
Weighted avg. no. of ord.
shares (in Ms)
Basic 1,138.8 1,135.2
Diluted 1,144.3 1,138.1
---------- ------------ ---------- ----------
*'+' is favourable and '-' is adverse period-on-period.
Ryanair Holdings plc and Subsidiaries
Condensed Consolidated Interim Income Statement for the Quarter Ended September 30, 2023
(unaudited)
IFRS Pre-Except. Except. IFRS
Quarter Quarter Quarter Quarter
Pre- Ended Ended Ended Ended
Except. Sep 30, Sep 30, Sep 30, Sep 30,
Change 2023 2022 2022 2022
Note % EURM EURM EURM EURM
Operating revenues
Scheduled revenues +26% 3,600.2 2,848.4 - 2,848.4
Ancillary revenues +14% 1,325.7 1,166.2 - 1,166.2
Total operating
revenues 7 +23% 4,925.9 4,014.6 - 4,014.6
Operating expenses
Fuel and oil -29% 1,476.5 1,144.4 142.8 1,287.2
Airport and handling
charges -25% 444.1 355.5 - 355.5
Staff costs -24% 383.1 309.2 - 309.2
Route charges -15% 292.6 254.4 - 254.4
Depreciation -25% 283.9 226.7 - 226.7
Marketing,
distribution and
other -23% 239.2 193.7 - 193.7
Maintenance, materials
and
repairs +9% 101.9 112.1 - 112.1
Total operating
expenses -24% 3,221.3 2,596.0 142.8 2,738.8
Operating profit/(loss) +20% 1,704.6 1,418.6 (142.8) 1,275.8
Other income/(expenses)
Net finance
income/(expense) 13.7 (16.1) - (16.1)
Foreign exchange (0.5) (40.0) - (40.0)
Total other
income/(expenses) 13.2 (56.1) - (56.1)
Profit/(loss) before
tax +26% 1,717.8 1,362.5 (142.8) 1,219.7
Tax (expense)/credit (202.6) (161.7) 17.9 (143.8)
--------- ------------ --------- ---------
Profit/(loss) for the
quarter
- attributable to
equity holders
of parent +26% 1,515.2 1,200.8 (124.9) 1,075.9
--------- ------------ --------- ---------
Earnings per
ordinary share
(EUR)
Basic 1.3304 0.9474
Diluted 1.3239 0.9456
Weighted avg. no.
ord. shares
(in Ms)
Basic 1,138.9 1,135.7
Diluted 1,144.5 1,137.8
--------- ------------ --------- ---------
*'+' is favourable and '-' is adverse period-on-period.
Ryanair Holdings plc and Subsidiaries
Condensed Consolidated Interim Statement of Comprehensive Income
for Half-Year Ended September 30,
2023 (unaudited)
Half-Year Half-Year
Ended Ended
Sep 30, Sep 30,
2023 2022
EURM EURM
Profit for the half-year 2,178.1 1,263.4
---------- ----------
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 594.6 (170.2)
---------- ----------
Other comprehensive income/(loss) for the half-year, net
of income tax 594.6 (170.2)
---------- ----------
Total comprehensive income for the half-year - attributable
to equity holders of parent 2,772.7 1,093.2
---------- ----------
Ryanair Holdings plc and Subsidiaries
Condensed Consolidated Interim Statement of Comprehensive Income
for Quarter Ended September 30,
2023 (unaudited)
Quarter Quarter
Ended Ended
Sep 30, Sep 30,
2023 2022
EURM EURM
Profit for the quarter 1,515.2 1,075.9
-------- --------
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 757.5 (639.5)
-------- --------
Other comprehensive income/(loss) for the quarter, net
of income tax 757.5 (639.5)
-------- --------
Total comprehensive income for the quarter - attributable
to equity holders of parent 2,272.7 436.4
-------- --------
Ryanair Holdings plc and Subsidiaries
Condensed Consolidated Interim Statement of Cash Flows for the
Half-Year Ended September 30, 2023
(unaudited)
Half-Year Half-Year
Ended Ended
Sep 30, Sep 30,
2023 2022
Note EURM EURM
Operating activities
Profit after tax 2,178.1 1,263.4
Adjustments to reconcile profit after tax to net
cash from operating activities
Depreciation 558.8 453.1
Decrease/(increase) in inventories 0.3 (0.2)
Tax expense 280.4 159.3
Share based payments 9.9 8.4
Increase in trade receivables (8.6) (34.5)
Increase in other assets (136.8) (254.4)
Increase in trade payables 232.7 262.3
Decrease in accrued expenses and other liabilities (1,441.0) (259.8)
Increase in provisions 0.6 60.8
(Decrease)/increase in finance income (4.3) 0.9
Increase in finance expense (14.6) (11.9)
Foreign exchange and fair value* 9.7 110.0
Income tax paid (24.8) (0.7)
Net cash inflow from operating activities 1,640.4 1,756.7
---------- ----------
Investing activities
Capital expenditure - purchase of property, plant
and equipment (1,585.0) (899.6)
Disposal proceeds - 4.9
Supplier reimbursements - 127.5
Decrease/(increase) in financial assets: cash
> 3 months 691.3 (1,910.6)
Net cash used in investing activities (893.7) (2,677.8)
---------- ----------
Financing activities
Net proceeds from shares issued 11 3.1 19.1
Repayment of borrowings (1,070.2) (80.7)
Lease liabilities paid (22.5) (26.2)
Net cash used in financing activities (1,089.6) (87.8)
---------- ----------
Decrease in cash and cash equivalents (342.9) (1,008.9)
Net foreign exchange differences 4.1 64.1
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 3,260.5 1,724.2
---------- ----------
Included in the cash flows from operating activities
for the half-year are the following amounts:
Interest income received 72.5 3.1
Interest expense paid (68.9) (46.3)
*The half-year ended September 30, 2022 includes an exceptional
loss of EUR122.8M 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 Half-Year Ended
September 30, 2023 (unaudited)
Issued Share Other Other
Ordinary Share Premium Undenom. Retained Reserves Other
Shares Capital Account Capital Earnings Hedging Reserves Total
M EURM EURM EURM EURM EURM EURM EURM
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 half-year - - - - 1,263.4 - - 1,263.4
Other comprehensive
loss
Net movements in cash
flow reserve - - - - - (170.2) - (170.2)
Total other comprehensive
loss - - - - - (170.2) - (170.2)
-------- -------- --------- --------- ----------
Total comprehensive
income/(loss) - - - - 1,263.4 (170.2) - 1,093.2
-------- -------- --------- --------- ---------- --------- ----------
Transactions with
owners of the Company
recognised directly
in equity
Issue of ordinary
equity shares 2.6 0.1 32.6 - (13.5) - - 19.2
Share-based payments - - - - - - 8.4 8.4
Transfer of exercised
and expired share-based
awards - - - - 3.3 - (3.3) -
--------- -------- -------- --------- --------- ---------- --------- ----------
Balance at September
30, 2022 1,137.2 6.9 1,360.8 3.5 4,134.1 1,125.2 35.6 6,666.1
--------- -------- -------- --------- --------- ---------- --------- ----------
Profit for the half-year - - - - 50.4 - - 50.4
Other comprehensive
loss
Net movements in cash-flow
reserve - - - - - (1,093.8) - (1,093.8)
-------- -------- --------- --------- ---------- --------- ----------
Total other comprehensive
loss - - - - - (1,093.8) - (1,093.8)
-------- -------- --------- --------- ---------- --------- ----------
Total comprehensive
income/(loss) - - - - 50.4 (1,093.8) - (1,043.4)
-------- -------- --------- --------- ---------- --------- ----------
Transactions with
owners of the Company
recognised directly
in equity
Issue of ordinary
equity shares 1.5 - 19.1 - (6.6) - - 12.5
Share-based payments - - - - - - 7.8 7.8
Transfer of exercised
and expired share-based
awards - - - - 2.1 - (2.1) -
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 half-year - - - - 2,178.1 - - 2,178.1
Other comprehensive
income
Net movements in cash
flow reserve - - - - - 594.6 - 594.6
Total other comprehensive
income - - - - - 594.6 - 594.6
-------- -------- --------- --------- ----------
Total comprehensive
income - - - - 2,178.1 594.6 - 2,772.7
-------- -------- --------- --------- ---------- --------- ----------
Transactions with
owners of the Company
recognised directly
in equity
Issue of ordinary
equity shares 0.3 - 4.3 - (1.2) - - 3.1
Share-based payments - - - - - - 9.9 9.9
Transfer of exercised
and expired share-based
awards - - - - 0.7 - (0.7) -
--------- -------- -------- --------- --------- ---------- --------- ----------
Balance at September
30, 2023 1,139.0 6.9 1,384.2 3.5 6,357.6 626.0 50.5 8,428.7
--------- -------- -------- --------- --------- ---------- --------- ----------
Ryanair Holdings plc and Subsidiaries
MD&A Half-Year Ended September 30, 2023 ("H1 FY24")
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 half-year ended
September 30, 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 up to 15% 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 EUR123M
(pre-tax) was recorded on the Group's jet fuel call options at
September 30, 2022.
Income Statement
Scheduled revenues:
Scheduled revenues increased 37 % to EUR6.07BN due to 11%
traffic growth (from 95.1M to 105.4M) and a 24% increase in average
fares to approx. EUR58.
Ancillary revenues:
Ancillary revenues increased 14% to EUR2.50BN as traffic grew
(up 11%) and spend on discretionary services such as priority
boarding, reserved seating and inflight sales increased 3% to
almost EUR24 per passenger.
Total revenues:
As a result of the above, total revenues increased 30% to
EUR8.58BN.
Operating Expenses:
Fuel and oil:
Fuel and oil rose 29% to EUR2.81BN due to a 9% increase in
sectors flown and 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 24% to EUR858M, due to 11%
traffic growth, higher ATC rates, and termination of temporary
Covid reliefs (included in the prior period comparative).
Staff costs:
Staff costs increased 27% to EUR743M due to the larger fleet, an
investment in S.23 operational resilience with higher crewing
ratios, restoration of Covid-19 pay reductions, crew pay increases
implemented in H1 FY24 and 9% higher sectors.
Route charges:
Route charges increased 12% to EUR562M, due to 9% sector growth
and higher Eurocontrol rates.
Depreciation:
Depreciation increased 23% to EUR559M, primarily due to higher
amortisation resulting from higher aircraft utilisation (sectors up
9%), the delivery of 47 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.
Marketing, distribution and other:
Marketing, distribution and other rose 20% to EUR441M due to
higher activity in the period (including increased credit card
transactions and higher inflight sales) and higher EU261 due to
delays arising from the knock-on effect of ATC related disruptions
(including the NATS system failure in August and significant French
ATC strikes).
Maintenance, materials and repairs:
Maintenance, materials and repairs decreased 9% to EUR183M due
to the timing of aircraft checks. There is a partial timing offset
in depreciation above, arising from the extension of 24 A320 leases
in FY23.
Other expense:
Net finance income was positive at EUR32M due to rising deposit
interest rates, lower gross debt and a net cash position throughout
the period. Foreign exchange translation reflects the impact of
EUR/US$ exchange rate movements on balance sheet revaluations.
Balance sheet:
Gross cash decreased EUR1.03BN to EUR3.64BN at September 30,
2023. Gross debt reduced by EUR1.32BN and net cash increased
EUR285M to EUR844M at September 30, 2023.
Shareholders' equity:
Shareholders' equity increased by EUR2.79BN to EUR8.43BN in the
period primarily due to a EUR2.18BN net profit and a EUR0.59BN IFRS
hedge accounting increase in derivatives.
MD&A Quarter Ended September 30, 2023 ("Q2 FY24")
Introduction
For the purposes of the Management Discussion and Analysis
("MD&A") all figures and comments are by reference to the
quarter ended September 30, 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 up to 15% 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 EUR143M
(pre-tax) was recorded on the Group's jet fuel call options at
September 30, 2022.
Income Statement
Scheduled revenues:
Scheduled revenues increased 26 % to EUR3.60BN due to 11%
traffic growth (from 49.5M to 55.0M) and a 14% increase in average
fares to approx. EUR65.
Ancillary revenues:
Ancillary revenues increased 14% to EUR1.33BN as traffic grew
(up 11%) and spend on discretionary services such as priority
boarding, reserved seating and inflight sales increased 3% to over
EUR24 per passenger.
Total revenues:
As a result of the above, total revenues increased 23% to
EUR4.93BN.
Operating Expenses:
Fuel and oil:
Fuel and oil rose 29 % to EUR1.48BN due to a 10% increase in
sectors flown and 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 25% to EUR444M, due to 11%
traffic growth, higher ATC rates, and termination of temporary
Covid reliefs (included in the prior period comparative).
Staff costs:
Staff costs increased 24% to EUR383M due to the larger fleet, an
investment in S.23 operational resilience with higher crewing
ratios, restoration of Covid-19 pay reductions, crew pay increases
implemented and 10% higher sectors.
Route charges:
Route charges increased 15% to EUR293M, due to 10% sector growth
and higher Eurocontrol rates.
Depreciation:
Depreciation increased 25% to EUR284M, primarily due to higher
amortisation resulting from higher aircraft utilisation (sectors up
10%), the delivery of 47 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.
Marketing, distribution and other:
Marketing, distribution and other rose 23% to EUR239M due to
higher activity in the period (including increased credit card
transactions and higher inflight sales) and higher EU261 due to
delays arising from the knock-on effect of ATC related disruptions
(including the NATS system failure in August and significant French
ATC strikes).
Maintenance, materials and repairs:
Maintenance, materials and repairs decreased 9% to EUR102M due
to the timing of aircraft checks. There is a partial timing offset
in depreciation above, arising from the extension of A320 leases in
FY23.
Other expense:
Net finance income was positive at EUR14M due to rising deposit
interest rates, lower gross debt, and a net cash position
throughout the period. Foreign exchange translation reflects the
impact of EUR/US$ exchange rate movements on balance sheet
revaluations.
Ryanair Holdings plc and Subsidiaries
Interim Management Report
Introduction
This financial report for the half-year ended September 30, 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
six months of the year;
-- Related party transactions; and
-- Post balance sheet events.
Results of operations for the six-month period ended September
30, 2023 compared to the six-month period ended September 30, 2022,
including important events that occurred during the half-year, 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 remain volatile.
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 EUR2.18BN in the half-year ended September 30, 2023;
-- The Group's liquidity, with EUR3.64BN gross cash and
EUR0.84BN net cash at September 30, 2023, EUR0.26BN undrawn funds
under the Group's EUR0.75BN 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 534 owned B737 fleet unencumbered;
-- The Group's access to the debt capital markets,
unsecured/secured bank debt and sale and leaseback
transactions;
-- Strong cost control across the Group;
-- The Group's fuel hedging position (FY24 fuel requirements
were 83% hedged (via swaps and caps) and 37% (all swaps) of FY25
jet fuel requirements were hedged at September 30, 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 half-year ended September 30, 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 and 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 September 30, 2023 figures and the September 30, 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 half-year ended September 30, 2023 on
November 3, 2023.
Except as stated otherwise below, the interim financial
statements for the half-year ended September 30, 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
half-year ended September 30, 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 date,
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 and
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 (issued on August 15,
2023).*
* 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 September 30, 2023, the Group had EUR10.32BN of property,
plant and equipment long-lived assets, of which EUR10.12BN 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 half-year ended
September 30, 2023 of EUR280M (September 30, 2022: pre-exceptional
EUR175M) comprises a current tax charge of EUR28M and a deferred
tax charge of EUR252M 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 half-year
(September 30, 2022: 11%) 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 September 30, 2023 the Group had an operating fleet of 535
(2022: 486) Boeing 737 and 28 (2022: 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 September 30, 2023, the Group had taken delivery of
124 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:
Ryanair
Half-Year Ended DAC Other Airlines Elimination Total
Sep 30, Sep 30, Sep 30, Sep 30,
2023 2023 2023 2023
EURM EURM EURM EURM
Scheduled revenue 5,979.4 94.5 - 6,073.9
Ancillary revenue 2,501.3 - - 2,501.3
Inter-segment revenue 374.9 695.7 (1,070.6) -
---------- --------------- ------------ ----------
Segment revenue 8,855.6 790.2 (1,070.6) 8,575.2
---------- --------------- ------------ ----------
Reportable segment profit
after income tax 2,109.9 68.2 - 2,178.1
---------- --------------- ------------ ----------
Other segment information:
Depreciation (537.9) (20.9) - (558.8)
Net finance income/(expense) 36.2 (4.4) - 31.8
Capital expenditure (949.9) (29.2) - (979.1)
Segment assets 15,728.7 639.6 - 16,368.3
Segment liabilities (7,001.9) (937.7) - (7,939.6)
Ryanair
Half-Year Ended DAC Other Airlines Elimination Total
Sep 30, Sep 30, Sep 30, Sep 30,
2022 2022 2022 2022
EURM EURM EURM EURM
Scheduled revenue 4,346.6 78.2 - 4,424.8
Ancillary revenue 2,191.3 - - 2,191.3
Inter-segment revenue 381.6 649.3 (1,030.9) -
------------------ --------------- ------------ ----------
Segment revenue 6,919.5 727.5 (1,030.9) 6,616.1
------------------ --------------- ------------ ----------
Reportable segment profit
after income tax (i) 1,343.5 27.3 - 1,370.8
------------------ --------------- ------------ ----------
Other segment information:
Depreciation (427.4) (25.7) - (453.1)
Net finance expense (34.2) (2.0) - (36.2)
Capital expenditure (679.2) (118.0) - (797.2)
Segment assets 16,063.1 534.2 - 16,597.3
Segment liabilities (9,003.6) (927.6) - (9,931.2)
(i) Adjusted profit after tax in the half-year to September 30,
2022, excludes a net exceptional loss after tax of EUR107M,
attributable to the fair value measurement of jet fuel call
options.
Quarter Ended Ryanair
DAC Other Airlines Elimination Total
Sep 30, Sep 30, Sep 30, Sep 30,
2023 2023 2023 2023
EURM EURM EURM EURM
Scheduled revenue 3,535.5 64.7 - 3,600.2
Ancillary revenue 1,325.7 - - 1,325.7
Inter-segment revenue 190.9 352.9 (543.8) -
---------- --------------- ------------ ----------
Segment revenue 5,052.1 417.6 (543.8) 4,925.9
---------- --------------- ------------ ----------
Reportable segment profit
after income tax 1,476.6 38.6 - 1,515.2
---------- --------------- ------------ ----------
Other segment information:
Depreciation (273.4) (10.5) - (283.9)
Net finance income/(expense) 15.9 (2.2) - 13.7
Capital expenditure (430.6) (16.6) - (447.2)
Segment assets 15,728.7 639.6 - 16,368.3
Segment liabilities (7,001.9) (937.7) - (7,939.6)
Ryanair
Quarter Ended DAC Other Airlines Elimination Total
Sep 30, Sep 30, Sep 30, Sep 30,
2022 2022 2022 2022
EURM EURM EURM EURM
Scheduled revenue 2,790.5 57.9 - 2,848.4
Ancillary revenue 1,166.2 - - 1,166.2
Inter-segment revenue 189.8 329.2 (519.0) -
------------------ --------------- ------------ ----------
Segment revenue 4,146.5 387.1 (519.0) 4,014.6
------------------ --------------- ------------ ----------
Reportable segment profit
after income tax (i) 1,188.9 11.9 - 1,200.8
------------------ --------------- ------------ ----------
Other segment information:
Depreciation (215.0) (11.7) - (226.7)
Net finance expense (14.6) (1.5) - (16.1)
Capital expenditure (261.4) (114.0) - (375.4)
Segment assets 16,063.1 534.2 - 16,597.3
Segment liabilities (9,003.6) (927.6) - (9,931.2)
(i) Adjusted profit after tax in the three months to September
30, 2022, excludes a net exceptional loss after tax of EUR125M,
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 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" includes all other
countries in which the Group has operations.
Half-Year Half-Year Quarter Quarter
Ended Ended Ended Ended
Sep 30, Sep 30, Sep 30, Sep 30,
2023 2022 2023 2022
EURM EURM EURM EURM
Italy 1,830.3 1,460.1 1,029.8 874.6
Spain 1,552.4 1,180.0 897.0 712.3
United Kingdom 1,263.4 947.6 717.7 565.8
Ireland 488.8 377.6 277.3 223.7
Other 3,440.3 2,650.8 2,004.1 1,638.2
---------- ---------- --------- ---------
Total revenue 8,575.2 6,616.1 4,925.9 4,014.6
---------- ---------- --------- ---------
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 September 30, 2023, net capital
additions amounted to EUR924M principally reflecting aircraft
deliveries in the period, aircraft pre-delivery deposits and
capitalised maintenance, offset by supplier reimbursements and
favourable EUR/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 half-year ended
September 30, 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
September 30, 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 quarter ended
September 30, 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 September 30,
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 Sep At Sep At Mar At Mar
30, 30, 31, 31,
2023 2023 2023 2023
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 64.1 64.1 53.2 53.2
* Jet fuel & carbon derivative forward contracts 46.0 46.0 - -
* Interest rate swaps - - 1.4 1.4
--------- -------- --------- --------
110.1 110.1 54.6 54.6
Current financial assets
Derivative financial instruments:
* U.S. dollar currency forward contracts 289.8 289.8 226.2 226.2
* Jet fuel options 34.1 34.1 14.1 14.1
* Jet fuel & carbon derivative forward contracts 281.5 281.5 49.6 49.6
* Interest rate swaps - - 2.2 2.2
--------- -------- --------- --------
605.4 605.4 292.1 292.1
Trade receivables* 68.3 59.7
Cash and cash equivalents* 3,260.5 3,599.3
Financial asset: cash > 3 months* 364.9 1,056.2
Restricted cash* 19.5 19.5
--------- -------- --------- --------
4,318.6 605.4 5,026.8 292.1
--------- -------- --------- --------
Total financial assets 4,428.7 715.5 5,081.4 346.7
--------- -------- --------- --------
At Sep At Sept At Mar At Mar
30, 30, 31, 31,
2023 2023 2023 2023
Carrying Fair Carrying Fair
Amount Value Amount Value
--------- -------- --------- --------
Non-current financial liabilities EURM EURM EURM EURM
Derivative financial instruments:
* Jet fuel & carbon derivative contracts 0.7 0.7 8.1 8.1
* U.S. dollar currency forward contracts 0.4 0.4 3.1 3.1
--------- -------- --------- --------
1.1 1.1 11.2 11.2
--------- -------- --------- --------
Non-current maturities of debt
* Long-term debt 533.6 533.6 812.3 812.3
* Bonds 2,043.2 1,931.9 2,040.9 1,928.4
--------- -------- --------- --------
2,576.8 2,465.5 2,853.2 2,740.7
--------- -------- --------- --------
2,577.9 2,466.6 2,864.4 2,751.9
--------- -------- --------- --------
Current financial liabilities
Derivative financial instruments:
* Jet fuel & carbon derivative contracts 64.8 64.8 341.7 341.7
* U.S. dollar currency forward contracts - - 44.9 44.9
64.8 64.8 386.6 386.6
Current maturities of debt:
* Short-term debt 35.3 35.3 76.8 76.8
* Promissory notes** - - 230.6 230.6
* Bonds - - 749.3 744.3
--------- -------- --------- --------
35.3 35.3 1,056.7 1,051.7
Trade payables* 982.3 1,065.5
Accrued expenses* 1,366.4 1,276.6
--------- -------- --------- --------
2,448.8 100.1 3,785.4 1,438.3
--------- -------- --------- --------
Total financial liabilities 5,026.7 2,566.7 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 half-year ended September 30, 2023, EUR0.2BN
promissory notes were settled.
During May 2023 the Group converted its unsecured EUR750m
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 EUR750M bond and
paid down EUR260M of its revolving credit facility.
11. Shareholders' equity and shareholders' returns
During the half-year ended September 30, 2023, 0.3M ordinary
shares were issued at a strike price of EUR12 per share following
the exercise of vested share options for proceeds of EUR3.1M. There
were no shareholder returns during the half-year ended September
30, 2023.
12. Post balance sheet events
The Company has declared a maiden ordinary dividend of EUR400m
(c.EUR0.35 per share) in aggregate through an interim and final
dividend of approximately EUR200m each payable in February 2024 and
after the AGM in September 2024 respectively.
For subsequent financial years (i.e. for FY25 onwards), under
the Company's new dividend policy, the Company intends to return
approximately 25% of prior-year profit after tax (adjusted for
non-recurring gains or losses) by way of ordinary dividends to
shareholders. Additionally, the Board, taking into account
prevailing market conditions and ensuring that the Group retains a
prudent level of cash to fund debt and capex requirements, retains
the flexibility to consider, when appropriate, the return of
surplus cash to shareholders through special dividends and/or share
buybacks.
Ryanair Holdings plc and Subsidiaries
Responsibility Statement
Statement of the Directors in respect of the interim financial
report
The Directors are responsible for preparing the half-yearly
financial report in accordance with the Transparency (Directive
2004/109/EC) Regulations 2007 ("Transparency Directive"), and the
Central Bank (Investment Market Conduct) Rules 2019.
In preparing the condensed set of consolidated interim financial
statements included within the half-yearly financial report, the
Directors are required to:
-- prepare and present the condensed set of financial statements
in accordance with IAS 34 Interim Financial Reporting as adopted by
the EU, the Transparency Directive and the Central Bank (Investment
Market Conduct) Rules 2019;
-- ensure the condensed set of financial statements has adequate disclosures;
-- select and apply appropriate accounting policies; and
-- make accounting estimates that are reasonable in the circumstances.
The Directors are responsible for designing, implementing and
maintaining such internal controls as they determine is necessary
to enable the preparation of the condensed set of financial
statements that is free from material misstatement whether due to
fraud or error.
We confirm that to the best of our knowledge:
(1) the condensed set of consolidated interim financial
statements included within the half-yearly financial report of
Ryanair Holdings plc for the six months ended September 30, 2023
("the interim financial information") which comprises the condensed
consolidated interim balance sheet, the condensed consolidated
interim income statement, the condensed consolidated interim
statement of comprehensive income, the condensed consolidated
interim statement of cash flows and the condensed consolidated
interim statement of changes in shareholders' equity and the
related explanatory notes, have been presented and prepared in
accordance with IAS 34 Interim Financial Reporting, as adopted by
the EU, the Transparency Directive and the Central Bank (Investment
Market Conduct) Rules 2019.
(2) The interim financial information presented, as required by
the Transparency Directive, includes:
a. an indication of important events that have occurred during
the first 6 months of the financial year, and their impact on the
condensed set of consolidated interim financial statements;
b. a description of the principal risks and uncertainties for
the remaining 6 months of the financial year
c. related parties' transactions that have taken place in the
first 6 months of the current financial year and that have
materially affected the financial position or the performance of
the enterprise during that period; and
d. any changes in the related parties' transactions described in
the last annual report that could have a material effect on the
financial position or performance of the enterprise in the first 6
months of the current financial year.
On behalf of the Board
Stan McCarthy Michael O'Leary
Chairman Chief Executive
November 3, 2023
Independent review report to Ryanair Holdings plc
Report on the condensed consolidated interim financial
statements
Our conclusion
We have reviewed Ryanair Holdings plc's Condensed Consolidated
Interim Financial Statements (the "interim financial statements")
in the Half-Yearly Financial Report of Ryanair Holdings plc for the
period ended September 30, 2023 (the "period").
Based on our review, nothing has come to our attention that
causes us to believe that the interim financial statements are not
prepared, in all material respects, in accordance with
International Accounting Standard 34, 'Interim Financial
Reporting', as adopted by the European Union and the Transparency
(Directive 2004/109/EC) Regulations 2007 and the Central Bank
(Investment Market Conduct) Rules 2019.
The interim financial statements comprise:
-- the Condensed Consolidated Interim Balance Sheet as at September 30, 2023 on page 1;
-- the Condensed Consolidated Interim Income Statement and
Condensed Consolidated Interim Statement of Comprehensive Income
for the Half-Year then ended on pages 2 and 4;
-- the Condensed Consolidated Interim Income Statement and
Condensed Consolidated Interim Statement of Comprehensive Income
for the Quarter then ended on pages 3 and 4;
-- the Condensed Consolidated Interim Statement of Cash Flows
for the Half-Year ended September 30, 2023 on page 5;
-- the Condensed Consolidated Interim Statement of Changes in
Shareholders' Equity for the Half-Year ended September 30, 2023 on
page 6; and
-- the Notes forming part of the Condensed Consolidated Interim
Financial Statements on pages 13 to 21.
The MD&A Half-Year Ended September 30, 2023 on pages 7 to 8,
the MD&A Quarter Ended September 30, 2023 on pages 9 to 10 and
the Interim Management Report on pages 11 to 12 do not form part of
the interim financial statements.
The interim financial statements included in the Half-Yearly
Financial Report have been prepared in accordance with
International Accounting Standard 34, 'Interim Financial
Reporting', as adopted by the European Union and the Transparency
(Directive 2004/109/EC) Regulations 2007 and the Central Bank
(Investment Market Conduct) Rules 2019.
As disclosed in note 1 to the interim financial statements, the
financial reporting framework that has been applied in the
preparation of the full annual financial statements of the Group is
applicable law, International Financial Reporting Standards (IFRSs)
as adopted by the European Union and IFRSs as issued by the
International Accounting Standards Board.
Basis for conclusion
We conducted our review in accordance with International
Standard on Review Engagements (Ireland) 2410, 'Review of Interim
Financial Information Performed by the Independent Auditor of the
Entity' ("ISRE (Ireland) 2410") issued for use in Ireland. A review
of interim financial information consists of making enquiries,
primarily of persons responsible for financial and accounting
matters, and applying analytical and other review procedures.
A review is substantially less in scope than an audit conducted
in accordance with International Standards on Auditing (Ireland)
and, consequently, does not enable us to obtain assurance that we
would become aware of all significant matters that might be
identified in an audit. Accordingly, we do not express an audit
opinion.
We have read the other information contained in the Half-Yearly
Financial Report and considered whether it contains any apparent
misstatements or material inconsistencies with the information in
the interim financial statements.
Conclusions relating to going concern
Based on our review procedures, which are less extensive than
those performed in an audit as described in the Basis for
conclusion section of this report, nothing has come to our
attention to suggest that the Directors have inappropriately
adopted the going concern basis of accounting or that the Directors
have identified material uncertainties relating to going concern
that are not appropriately disclosed.
This conclusion is based on the review procedures performed in
accordance with ISRE (Ireland) 2410. However future events or
conditions may cause the Group to cease to continue as a going
concern.
Responsibilities for the interim financial statements and the
review
Our responsibilities and those of the Directors
The Half-Yearly Financial Report, including the interim
financial statements, is the responsibility of, and has been
approved by, the Directors. The Directors are responsible for
preparing the half-yearly financial report in accordance with the
Transparency (Directive 2004/109/EC) Regulations 2007 and the
Central Bank (Investment Market Conduct) Rules 2019. In preparing
the Half-Yearly Financial Report including the interim financial
statements, the Directors are responsible for assessing the Group's
ability to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going concern basis
of accounting unless the Directors either intend to liquidate the
Group or to cease operations, or have no realistic alternative but
to do so.
Our responsibility is to express a conclusion on the interim
financial statements in the Half-Yearly Financial Report based on
our review. Our conclusion, including our Conclusions relating to
going concern, is based on procedures that are less extensive than
audit procedures, as described in the Basis for conclusion
paragraph of this report. This report, including the conclusion,
has been prepared for and only for the company for the purpose of
complying with the Transparency (Directive 2004/109/EC) Regulations
2007 and the Central Bank (Investment Market Conduct) Rules 2019
and for no other purpose. We do not, in giving this conclusion,
accept or assume responsibility for any other purpose or to any
other person to whom this report is shown or into whose hands it
may come save where expressly agreed by our prior consent in
writing.
PricewaterhouseCoopers
Chartered Accountants
3 November 2023
Dublin
The maintenance and integrity of the Ryanair Holdings plc
website is the responsibility of the Directors; the work carried
out by the auditors does not involve consideration of these matters
and, accordingly, the auditors accept no responsibility for any
changes that may have occurred to the financial statements since
they were initially presented on the website.
Legislation in the Republic of Ireland governing the preparation
and dissemination of financial statements may differ from
legislation in other jurisdictions.
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END
ISEBJBRTMTTMBFJ
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