Indicate
by check mark whether the registrant files or will file
annual
reports
under cover Form 20-F or Form 40-F.
Form
20-F..X.. Form
40-F
Indicate
by check mark whether the registrant by furnishing the
information
contained
in this Form is also thereby furnishing the information to
the
Commission
pursuant to Rule 12g3-2(b) under the Securities
Exchange
Act of
1934.
Yes
No ..X..
If
"Yes" is marked, indicate below the file number assigned to the
registrant
in
connection with Rule 12g3-2(b): 82- ________
RYANAIR REPORTS Q3 NET PROFIT OF €211M
DUE TO STRONG CHRISTMAS/NEW YEAR TRAFFIC & LOW
COSTS
Ryanair Holdings plc today (30 Jan.) reported a Q3 PAT of
€211m, compared to a pre-Covid (FY20) Q3 PAT of
€88m. 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. 2021
31 Dec. 2022
Change
Customers
31.1m
38.4m
+24%
Load
Factor
84%
93%
+9pts
Revenue
€1.47bn
€2.31bn
+57%
Op.
Costs
€1.59bn
€2.15bn*
+36%
Net
(Loss)/ PAT
(€96m)
€211m*
n/m
EPS
(€0.08)
€0.18
n/m
* Non-IFRS financial measure, excl. €9m 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 €30.
●
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 CO₂ 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
CO₂), 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 CO₂ 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 €1.45bn 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 €22.50 per passenger.
Total Q3 revenue rose 57% to €2.31bn. Operating costs
increased 36% to €2.15bn, driven by higher fuel costs (+52%
to €0.90bn, 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
€30 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 $92bbl). Forex is also well hedged
with over 80% of Q4 FY23 €/$ opex hedged at just under 1.15
and approx. 60% of FY24 at 1.08. Our Boeing order book is
fully hedged at €/$ 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
€4.07bn 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
€0.96bn (from €1.45bn at 31 Mar.), despite
€1.27bn capex. Our focus over the coming year is the
repayment of €1.60bn of maturing bonds (€850m in Mar.
and €750m 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 €1.325bn - €1.425bn (previously
€1.00bn - €1.20bn). This guidance remains heavily
dependent upon avoiding adverse events in Q4 (such as Covid and/or
the war in Ukraine)."
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
CO₂
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,
2022
At Mar 31,
2022
Note
€M
€M
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.
Pre-Except.
Quarter Ended
Dec 31,
Except.
Quarter
Ended
Dec 31,
IFRS
Quarter
Ended
Dec 31,
IFRS
Quarter Ended
Dec 31,
Change
2022
2022
2022
2021
Note
%
€M
€M
€M
€M
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 (€)
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.
Pre-Except.
Nine Months Ended
Dec 31,
Except.
Nine Months
Ended
Dec 31,
IFRS
Nine Months
Ended
Dec 31,
IFRS
Nine Months Ended
Dec 31,
Change
2022
2022
2022
2021
Note
%
€M
€M
€M
€M
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 (€)
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
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,
2022
Dec 31,
2021
€M
€M
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,
2022
Dec 31,
2021
€M
€M
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,
2022
Dec 31,
2021
Note
€M
€M
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 €133.0M pre-tax,
attributable to the fair value measurement of jet fuel call
options.
Ryanair Holdings plc and Subsidiaries
Condensed Consolidated Interim Statement of Changes in
Shareholders' Equity for the nine months ended December 31, 2022
(unaudited)
Ordinary Shares
Issued
Share Capital
Share
Premium Account
Retained Earnings
Other
Undenom. Capital
Other Reserves Hedging
Other Reserves
Total
M
€M
€M
€M
€M
€M
€M
€M
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 €9M (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 €1.45BN 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 €866M 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
€2.31BN.
Operating Expenses:
Fuel and oil:
Fuel and oil increased by 52% to
€905M 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 €287M, well below the
24% increase in traffic.
Staff
costs:
Staff costs increased by 52% to
€293M 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
€201M, ahead of the 12%
increase in sectors, due to higher Eurocontrol and ATC
rates.
Depreciation:
Depreciation increased by 10% to
€213M, 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 €160M 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
€93M 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
€6M 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 €/US$ exchange rate in the period,
reversing H1's negative currency charge on balance sheet
revaluations.
Balance sheet:
Gross cash increased by €445M
to €4.07BN at
December 31, 2022.
Gross debt decreased by €48M
to €5.03BN,
primarily due to debt repayments during the period, offset by the
extension of 24 A320 leases.
Net debt was €0.96M at December 31, 2022. This is a
€0.49BN reduction from €1.45BN at March 31, 2022,
despite Capex of €1.27BN year-to-date.
Shareholders'
equity:
Shareholders' equity increased by €747M
to €6.29BN in
the period primarily due to a €1.47BN net profit
(year-to-date) and an IFRS hedge accounting unrealised loss for
derivatives of €762M.
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 €116M (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 (€114M post-tax).
Income Statement
Scheduled revenues:
Scheduled revenues increased
by 185%
to €5.87BN 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 €3.06BN 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
€8.93BN.
Operating Expenses:
Fuel and oil:
Fuel and oil increased by 135% to
€3.08BN 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 €979M, well below the
90% increase in traffic.
Staff
costs:
Staff costs increased by 77% to
€877M 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
€704M, 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
€666M, 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 €528M 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
€293M 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
€42M 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
€/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 €1.58BN in the
nine months ended December 31, 2022;
●
The
Group's liquidity, with €4.07BN cash at December 31, 2022, a
€0.49BN reduction in net debt during the period (despite
€1.27BN 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 €162M (2021: net asset
of €300M) 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 €357M (2021:
net asset €276M) 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 €9.65BN of property, plant
and equipment long-lived assets, of which €9.48BN 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 €170M (December 31, 2021: €89M tax credit)
comprises a current tax charge of €19M and a deferred tax
charge of €151M 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
€M
€M
€M
€M
€M
Scheduled revenue
1,438.6
-
8.0
-
1,446.6
Ancillary revenue
865.5
-
-
-
865.5
Inter-segment revenue
190.8
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 €9.0M,
attributable to the fair value measurement of jet fuel call
options.
Quarter Ended
Ryanair DAC
Malta Air
Other Airlines
Elimination
Total
Dec 31,
Dec 31,
Dec 31,
Dec 31,
Dec 31,
2021
2021
2021
2021
2021
€M
€M
€M
€M
€M
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
Nine
Months Ended
Ryanair
DAC
Malta
Air
Other
Airlines
Elimination
Total
Dec
31,
Dec
31,
Dec
31,
Dec
31,
Dec
31,
2022
2022
2022
2022
2022
€M
€M
€M
€M
€M
Scheduled
revenue
5,785.2
-
86.2
-
5,871.4
Ancillary
revenue
3,056.8
-
-
-
3,056.8
Inter-segment
revenue
572.4
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 €116.4M,
attributable to the fair value measurement of jet fuel call
options.
Nine Months Ended
Ryanair DAC
Malta Air
Other Airlines
Elimination
Total
Dec 31,
Dec 31,
Dec 31,
Dec 31,
Dec 31,
2021
2021
2021
2021
2021
€M
€M
€M
€M
€M
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 Ended
Dec 31, 2022
Nine Months Ended
Dec 31, 2021
Quarter Ended
Dec 31, 2022
Quarter
Ended
Dec
31, 2021
€M
€M
€M
€M
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 €1.19BN principally reflecting aircraft
deliveries in the period, aircraft pre-delivery deposits and
capitalised maintenance offset by supplier reimbursements of
approximately €128M. Right of Use assets (reflecting A320
aircraft operating lease extensions) increased by €87M 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: The
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 31,
At
Dec 31,
At Mar 31,
At
Mar 31,
2022
2022
2022
2022
Carrying
Fair
Carrying
Fair
Amount
Value
Amount
Value
Non-current financial assets
€M
€M
€M
€M
Derivative
financial instruments:
- U.S.
dollar currency forward contracts
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 31,
At
Dec 31,
At Mar 31,
At Mar 31,
2022
2022
2022
2022
Carrying
Fair
Carrying
Fair
Amount
Value
Amount
Value
Non-current
financial liabilities
€M
€M
€M
€M
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 €234M, 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 €6.25 and €8.35 per
share following the exercise of vested options for total proceeds
of €32M. 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.
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SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf
by the undersigned, hereunto duly authorized.