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 FULL YEAR LOSS OF €355M
TRAFFIC RECOVERS STRONGLY TO 97M BUT AT LOWER FARES
Ryanair
Holdings today (16 May) reported a full year loss of €355m
(pre-exceptionals), compared to a PY loss of
€1,015m.
FY end
31 Mar. 2021
31 Mar. 2022
Change
Customers
27.5m
97.1m
+253%
Load
Factor
71%
82%
+11pts
Revenue
€1.64bn
€4.80bn
+193%
Op.
Costs
€2.48bn
€5.27bn*
+113%
Net
Loss
(€1,015m)
(€355m)*
n/m
* Non-IFRS financial measure, excl. €114m except. unrealised
mark-to-market net gain on jet fuel caps.
During
FY22:
●
Ryanair’s
CDP1climate protection rating improved from
“B-” to “B”.
●
Sustainalytics2
ranked Ryanair the No.1 EU airline & No.2 World airline for
ESG.
●
Traffic recovered
strongly to 97.1m from 27.5m. (Still 35% behind
pre-Covid)
●
Ave. fares fell 27%
to just €27 due to Covid, Omicron & the Ukraine
invasion.
●
61 B737-8200
“Gamechangers”
delivered up to 31 Mar. (500 SH aircraft at year-end).
●
770 new routes
& 15 new bases were announced for the coming year.
●
Fuel well hedged at
significant discount to spot prices (FY23 80%; H1 FY24
10%).
●
S.22 capacity at
115% of S.19 (pre-Covid) levels – but recovery is
‘fragile’.
Ryanair’s Michael O’Leary, said:
ENVIRONMENT:
“Every
consumer who switches to Ryanair from EU legacy airlines can cut
their CO₂ emissions by up to 50% per flight. Over the coming
5-years we expect our traffic to grow by 50% to 225m p.a. This
growth will be delivered at lower fares but on a fleet of new B737
“Gamechanger”
aircraft, which offer 4% more seats, yet burns 16% less fuel and
reduce noise emissions by 40%.
Our
work with the EU, fuel suppliers, and aircraft manufacturers to
accelerate sustainable aviation fuel (SAF) supply continues, in
partnership with Trinity College’s Sustainable Aviation
Research Centre. Ryanair hopes to power up to 12.5% of our flights
using SAF and cut our CO₂ per pax/km by 10% to under 60 grams
by 2030. Last month we announced a partnership with Neste to power
up to one third of our flights from Schiphol (Amsterdam) with a 40%
SAF blend. We expect to establish similar partnerships across our
network over the coming years. We are working with A4E and the EU
to accelerate reform of the Single European Sky, to promote ATC
efficiency and cut delays which will reduce fuel consumption,
CO₂ emissions and flight delays.
Ryanair
published our “Aviation with
Purpose” sustainability report setting ambitious
environmental and social targets over the coming decade and mapping
out Ryanair’s path to net carbon zero by 2050. Our
environmental strategy has enabled CDP to upgrade Ryanair’s
climate protection rating to B from B- in Dec. 2021. Our goal
remains to achieve an “A” rating within the next 2
years. Last month, Sustainalytics improved Ryanair’s ESG
rankings to No.1 airline in Europe and the No.2
globally.
SOCIAL:
Our
growth plans to 2026 will see Ryanair create over 6,000 well-paid
jobs for highly skilled aviation professionals all over Europe.
Last autumn Ryanair invested €50m in a cutting-edge Aviation
Skills Training Centre in Dublin and we plan to invest over
€100m in 2 more, high skills, training centres (one in the
Iberian Peninsula and one in CEE) during this period. To facilitate
this growth, Ryanair ordered up to 8 CAE full flight simulators (at
a value of over $80m) and the first of these new sims delivers this
summer. We have also invested in new hangar maintenance facilities
in Kaunas and Shannon and agreed a 5-year maintenance contract with
Joramco in Jordan.
Despite
the recent disruption of our traffic recovery by both the Omicron
variant and the Russian invasion of Ukraine, we remain committed to
restoring the pay cuts we agreed with our people during the Covid
shut downs. We have made some progress with pilots and cabin crew
in certain markets on partial restorations in 2022. But, in other
markets the slow pace of union negotiations have hindered this
acceleration of similar restorations. We remain committed to
delivering the first tranche of our agreed 3-year restoration plan
as agreed in July 2022 and we are prepared to accelerate years 2
and 3 into one restoration in July 2023 if Ryanair returns to
pre-Covid load factors and profitability during y.e. Mar. 2023. We
are committed to the full pay restoration for all our people as
soon as our business returns to pre-Covid
profitability.
The Ryanair Customer Panel met
twice over the last year, providing valuable insights and
constructive suggestions to improve our customer service. We have
implemented many of these suggestions, including a Day of Travel
service in the Ryanair App which assists our guests with live
updates through every step of their journey, a new travel wallet
for accelerated refunds and an online self-service hub. Later this
summer we will introduce more service improvements, including auto
check-in and airport express to facilitate faster journeys through
airports. Our winning formula of the lowest fares, the most on-time
flights, industry lowest CO₂ emissions and friendly customer
service saw Ryanair’s customer satisfaction
(“CSAT”) scores rise significantly in
FY22.
EU OWNERSHIP & CONTROL:
Ryanair’s
EU ownership has increased from approx. 32% at 31 Mar. 2021 to
approx. 41% at 31 Mar. 2022. In the wake of Brexit, and the
treatment of UK nationals as non-EU shareholders from 1 Jan. 2021,
Ryanair has worked hard to grow its EU shareholder base. During the
past year, Ryanair increased its EU investor relations activity,
delisted from the London Stock Exchange, and forced sell downs
where non-EU investors incorrectly (post 1 Jan. 2021) purchased
ordinary shares instead of ADRs (listed on NASDAQ) and who
subsequently failed to comply with a Ryanair issued disposal
notice. Such actions, coupled with a suspension of voting rights of
non-EU shareholders, enable Ryanair to protect its EU airline
licenses post-Brexit. We expect these voting restrictions will
remain in place for the near-term future until a 50%+ EU
shareholding is restored, or the EU and UK agree a less restrictive
airline ownership and control regime than the current 50%+
nationality rule (which dates back to the 1940s).
GROWTH:
Over
the past year our New Route team continued to work with airport
partners to negotiate lower costs, Covid recovery incentives and
growth deals. In addition to 15 new bases (Agadir, Billund, Chania,
Corfu, Cork, Madeira, Newcastle, Nuremberg, Riga, Stockholm, Venice
(Marco-Polo), Venice (Treviso), Turin, Zadar & Zagreb), 770 new
routes were announced and low-cost long term growth deals were
extended at London Stansted (to 2028), Milan Bergamo (2028),
Manchester (2028), East Midlands (2028) and Brussels Charleroi
(2030). Our Group has doubled its capacity in Rome (FCO), Lisbon,
Vienna and has based a record 33 aircraft in Dublin for S.22,
launching our biggest ever Dublin summer schedule.
The
Covid-19 crisis accelerated the collapse of many European airlines
including Flybe, Norwegian, Germanwings, Level, Stobart and
material capacity cuts at many others including Alitalia (now ITA),
TAP, LOT, SAS, etc. The tsunami of State Aid from EU Govts. to
their insolvent flag carriers (Alitalia, Air France/KLM, Iberia,
LOT, Lufthansa, SAS, TAP and others) will distort EU competition
and prop up high cost, inefficient, flag carriers for some years.
Ryanair was one of very few airlines during the Covid crisis to
place significant new aircraft orders, to expand our airport
partnerships, secure lower costs so that we can pass on even lower
fares on many new routes during the post Covid recovery. Over the
past 2 years, Ryanair’s market share has increased markedly
across Europe. Notable examples include Italy where our market
share increased from c.30% (pre-Covid) to almost 40% this summer.
Market share in Vienna has jumped from 8% (S.19) to 21% (S.22). In
Budapest (a competitor’s home base) we have gone from 18% to
over 30% (and market leadership), Ireland rose from 49% to over
55%, Sweden doubled to 12% and Poland has grown from 25% to
35%.
Up to
March 2022, Ryanair has taken delivery of 61 B737-8200
“Gamechanger”
aircraft and we hope to increase this to over 70 new aircraft for
peak S.22 (more than the 65 previously targeted) to facilitate S.22
recovery and growth opportunities. This Summer, our capacity will
grow to approx. 115% of S.19 (pre-Covid) levels although we expect
to fill these flights with lower fares and at higher fuel costs
than pre-Covid. Our new, fuel efficient, “Gamechangers”
widen the cost gap between Ryanair and all other European airlines
for the next decade. Their operational reliability, lower fuel
consumption and CO₂ emissions have so far exceeded
expectations, with very positive feedback from both passengers and
our crews. Based on our 210 order book and available fleet
capacity, the Ryanair Group plans to accelerate traffic growth over
the next 5 years. From a pre-Covid figure of 149m, we now expect to
grow (by 50%) to over 225m guests p.a. by FY26.
FY22 BUSINESS REVIEW:
Revenue & Costs
FY22
scheduled revenues increased 156% to €2.65bn. While traffic
recovered strongly from 27.5m to 97.1m guests, the delayed
relaxation of EU Covid-19 travel restrictions until July 2021 (Oct.
in the case of the UK Govt.), combined with the damaging impact of
the Omicron variant and Russia’s invasion of Ukraine in H2,
meant that fares required significant price stimulation. Ave. fares
in FY22 were down 27% to just €27. Ancillary revenue
delivered a solid performance, generating more than €22 per
passenger as traffic recovered and guests increasingly chose
priority boarding and reserved seating. Total revenues increased by
over 190% to €4.80bn.
While
sectors increased almost 200% and traffic rose 253%, operating
costs rose just 113% to €5.27bn (incl. a notable 237%
increase in fuel to €1.83bn), driven primarily by lower
variable costs such as airport & handling, route charges and
lower fuel burn as 61xB737 Gamechangers entered the fleet (offset
by the higher cost jet fuel). Lower costs, coupled with rising load
factors, saw FY22 (ex-fuel) unit cost per passenger reduce to
€35.
Our
FY23 fuel needs are approx. 80% hedged (65% jet swaps at c.$63bbl
and 15% caps at c.$78bbl). Almost 10% of Ryanair’s H1 FY24
fuel requirements are hedged at c.$76bbl (via jet swaps). Carbon
credits are 85% hedged for FY23 at €53 (well below the
current spot price of almost €90). This very strong fuel
hedge position gives Ryanair a considerable competitive advantage
for the next 12 months and will enable us to grow market share
strongly over the coming year.
Balance Sheet & Liquidity
Ryanair’s
balance sheet is one of the strongest in our industry with a BBB
(stable) credit rating (S&P and Fitch). Year-end net debt fell
to €1.45bn (prior year €2.28bn), and over 90% of the
Group’s fleet of B737 aircraft are unencumbered. We plan to
reduce this net debt to zero over the next 2 years, despite peak
capex during that time. The strength of Ryanair’s balance
sheet ensures that the Group is well poised to capitalise rapidly
on the many growth opportunities that exist in Europe into the post
Covid-19 recovery this year and beyond.
OUTLOOK:
While
bookings have improved in recent weeks, the booking curve remains
much closer-in than was typical (pre-Covid) at this time of year.
The damaging impact of the Omicron variant, and Russia’s
invasion of Ukraine in Feb. means that Q1 pricing continues to need
stimulation. There is, however, pent-up demand and we are
cautiously optimistic that peak S.22 fares will be somewhat ahead
of peak S.19 (pre-Covid) levels. Ryanair plans to grow FY23 traffic
to 165m (up from 97m in FY22 and 149m pre-Covid) and will pursue
its load active, yield passive strategy to achieve this growth.
While 80% of Ryanair’s fuel requirements are hedged well
below current spot prices of over $100bbl, our unhedged 20% will
give rise to some unbudgeted cost increases.
Despite
limited H1 visibility (and almost zero H2 visibility), 20% unhedged
fuel and the significant risks posed by both the invasion of
Ukraine and Covid, we hope to return to reasonable profitability in
FY23. This recovery, however, remains fragile. This was clearly
evidenced by the sudden, and unexpected, emergence of the Omicron
variant pre-Christmas and the Russian invasion of Ukraine in Feb.,
both of which immediately damaged close-in bookings and yields for
the Christmas and Easter peak travel periods. Given the continuing
risk of adverse news flows on both these topics, it is impractical
(if not impossible) to provide a sensible or accurate profit
guidance range at this time”.
ENDS
For
further information please contact:
Neil
Sorahan
Piaras
Kelly
Ryanair
Holdings plc
Edelman
Tel:
+353-1-9451212
Tel:
+353-1- 5921330
www.ryanair.com
Ryanair Holdings plc, Europe’s largest airline group, is the
parent company of Buzz, Lauda, Malta Air, Ryanair & Ryanair UK.
Carrying 165m guests p.a. on more than 2,500 daily flights from 89
bases, the Group connects almost 230 destinations in 36 countries
on a fleet of over 500 aircraft, with a further 145 Boeing 737s on
order, which will enable the Ryanair Group to lower fares and grow
traffic to 225m p.a. over the next 5 years. Ryanair has a team of
18,500 highly skilled aviation professionals delivering
Europe’s No.1 on-time performance, and an industry leading
36-year safety record. Ryanair is Europe’s greenest,
cleanest, airline group and customers switching to fly Ryanair can
reduce their CO₂ emissions by up to 50% compared to the other
Big 4 European major 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, 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 UK and Continental
Europe, the general willingness of passengers to travel and other
economics, social and political factors, global pandemics such as
Covid-19, wars and unforeseen security events.
Ryanair Holdings plc and Subsidiaries
Condensed Consolidated Preliminary Balance Sheet
as at March 31, 2022 (unaudited)
At Mar 31,
At Mar 31,
2022
2021
Note
€M
€M
Non-current assets
Property,
plant and equipment
9
9,095.1
8,361.1
Right-of-use
asset
133.7
188.2
Intangible
assets
146.4
146.4
Derivative
financial instruments
12
185.1
111.3
Deferred
tax
42.3
14.0
Other
assets
72.1
48.7
Total non-current assets
9,674.7
8,869.7
Current assets
Inventories
4.3
3.6
Other
assets
401.1
179.8
Trade
receivables
12
43.5
18.6
Derivative
financial instruments
12
1,400.4
106.0
Restricted
cash
12
22.7
34.1
Financial
assets: cash > 3 months
12
934.1
465.5
Cash
and cash equivalents
12
2,669.0
2,650.7
Total current assets
5,475.1
3,458.3
Total assets
15,149.8
12,328.0
Current liabilities
Provisions
9.2
10.3
Trade
payables
12
1,029.0
336.0
Accrued
expenses and other liabilities
2,992.8
1,274.9
Current
lease liability
56.9
52.5
Current
maturities of debt
12
1,224.5
1,725.9
Derivative
financial instruments
12
38.6
79.2
Current
tax
47.7
48.1
Total current liabilities
5,398.7
3,526.9
Non-current liabilities
Provisions
94.1
47.4
Trade
payables
12
49.2
179.9
Derivative
financial instruments
12
-
6.4
Deferred
tax
266.5
272.4
Non-current
lease liability
81.4
130.6
Non-current
maturities of debt
12
3,714.6
3,517.8
Total non-current liabilities
4,205.8
4,154.5
Shareholders' equity
Issued
share capital
13
6.8
6.7
Share
premium account
13
1,328.2
1,161.6
Other
undenominated capital
3.5
3.5
Retained
earnings
2,880.9
3,232.3
Other
reserves
1,325.9
242.5
Shareholders' equity
5,545.3
4,646.6
Total liabilities and shareholders' equity
15,149.8
12,328.0
Ryanair Holdings plc and Subsidiaries
Condensed Consolidated Preliminary Income Statement for year ended
March 31, 2022 (unaudited)
Pre-Except.
Pre-Except.
Except.
IFRS
IFRS
Year Ended
Item Year Ended
Year Ended
Year Ended
Mar 31, 2022
Mar 31, 2022
Mar 31, 2022
Mar 31, 2021
Change
Note
%*
€M
€M
€M
€M
Operating revenues
Scheduled revenues
+156%
2,652.5
-
2,652.5
1,036.0
Ancillary revenues
+258%
2,148.4
-
2,148.4
599.8
Total operating revenues
+193%
4,800.9
-
4,800.9
1,635.8
Operating expenses
Fuel and oil
-237%
1,829.9
(130.5)
1,699.4
542.6
Airport and handling charges
-183%
813.4
-
813.4
287.2
Depreciation
-26%
719.4
-
719.4
571.0
Staff costs
-46%
690.1
-
690.1
472.2
Route charges
-194%
551.2
-
551.2
187.3
Marketing, distribution and other
-104%
411.3
-
411.3
201.5
Maintenance, materials and repairs
-24%
255.7
-
255.7
206.7
Aircraft rentals
-
-
-
6.7
Total operating expenses
-113%
5,271.0
(130.5)
5,140.5
2,475.2
Operating (loss)/profit
(470.1)
130.5
(339.6)
(839.4)
Other (expense)/income
Net finance expense
(91.4)
-
(91.4)
(53.8)
Foreign exchange / hedge Ineffectiveness
1.2
-
1.2
(215.5)
Total other (expense)
+67%
(90.2)
-
(90.2)
(269.3)
(Loss)/profit before tax
(560.3)
130.5
(429.8)
(1,108.7)
Tax credit/(charge)
4
205.3
(16.3)
189.0
93.6
(Loss)/profit for the year - attributable to equity holders of
parent
(355.0)
114.2
(240.8)
(1,015.1)
(Loss) per ordinary share (€)
Basic
(0.2130)
(0.9142)
Diluted
(0.2130)
(0.9142)
Weighted avg. no. of ord. shares (in Ms)
Basic
1,130.5
1,110.4
Diluted
1,130.5
1,110.4
*”+” is favourable and “-“ is adverse
year-on-year.
Ryanair Holdings plc and Subsidiaries
Condensed Consolidated Preliminary Statement of Comprehensive
Income for year ended March 31, 2022 (unaudited)
Year
Year
Ended
Ended
Mar 31,
Mar 31,
2022
2021
€M
€M
(Loss) for the year
(240.8)
(1,015.1)
Other comprehensive income:
Items that are or may be reclassified to profit or
loss:
Cash flow hedge reserve movements:
Net movement in cash flow hedge reserve
1,084.1
322.6
Other comprehensive income for the year, net of income tax
credit
1,084.1
322.6
Total comprehensive income/(expense) for the year –
attributable to equity holders of parent
843.3
(692.5)
Ryanair Holdings plc and Subsidiaries
Condensed Consolidated Preliminary Statement of Cash Flows for year
ended March 31, 2022 (unaudited)
Year
Year
Ended
Ended
Mar 31,
Mar 31,
2022
2021
Note
€M
€M
Operating activities
(Loss) after tax
(240.8)
(1,015.1)
Adjustments to reconcile (loss) after tax to net cash provided
from/(used in) operating activities
Depreciation
719.4
571.0
(Increase) in inventories
(0.7)
(0.3)
Tax (credit) on loss
(189.0)
(93.6)
Share based payments
5
8.6
3.6
(Increase)/decrease in trade receivables
(24.9)
48.9
(Increase) in other assets
(241.4)
(3.5)
Increase/(decrease) in trade payables
284.6
(407.6)
Increase/(decrease) in accrued expenses and other
liabilities
1,722.8
(1,318.8)
Increase/(decrease) in provisions
45.5
(21.9)
(Increase) in net finance expense
(6.6)
(3.7)
Foreign exchange/hedge ineffectiveness & fair
value
(146.5)
(294.1)
Income tax refunded
9.5
87.1
Net cash from/(used in) operating activities
1,940.5
(2,448.0)
Investing activities
Capital expenditure - purchase of property, plant and
equipment
9
(1,181.6)
(294.7)
Supplier reimbursements
9
113.9
377.6
Proceeds from sale of property, plant and equipment
9
110.5
112.1
Decrease in restricted cash
11.4
0.3
(Increase)/decrease in financial assets: cash > 3
months
(468.6)
741.7
Net cash (used in)/from investing activities
(1,414.4)
937.0
Financing activities
Net proceeds from shares issued
13
46.8
421.0
Proceeds from long term borrowings
1,192.0
2,228.6
Repayments of long term borrowings
(1,722.3)
(950.3)
Lease liabilities paid
(53.0)
(76.8)
Net cash (used in)/from financing activities
(536.5)
1,622.5
(Decrease)/increase in cash and cash equivalents
(10.4)
111.5
Net foreign exchange differences
28.7
(27.2)
Cash and cash equivalents at beginning of the year
2,650.7
2,566.4
Cash and cash equivalents at end of the year
2,669.0
2,650.7
Ryanair Holdings plc and Subsidiaries
Condensed Consolidated Preliminary Statement of Changes in
Shareholders’ Equity for year ended March 31, 2022
(unaudited)
Issued
Share
Other
Other
Ordinary
Share
Premium
Undenom.
Retained
Reserves
Other
Shares
Capital
Account
Capital
Earnings
Hedging
Reserves
Total
M
€M
€M
€M
€M
€M
€M
€M
Balance at April 01, 2020
1,089.2
6.5
738.5
3.5
4,245.0
(111.3)
32.3
4,914.5
Loss for the year
-
-
-
-
(1,015.1)
-
-
(1,015.1)
Other comprehensive income
Net movements in cash-flow reserve
-
-
-
-
-
322.6
-
322.6
Total other comprehensive income
-
-
-
-
-
322.6
-
322.6
Total comprehensive (loss)/income
-
-
-
-
(1,015.1)
322.6
-
(692.5)
Transactions with owners of the
Company recognised directly in equity
Issue of ordinary equity shares
38.9
0.2
423.1
-
(2.3)
-
-
421.0
Share-based payments
-
-
-
-
-
-
3.6
3.6
Transfer of exercised and expired share based awards
-
-
-
-
4.7
-
(4.7)
-
Balance at March 31, 2021
1,128.1
6.7
1,161.6
3.5
3,232.3
211.3
31.2
4,646.6
Loss for the year
-
-
-
-
(240.8)
-
-
(240.8)
Other comprehensive income
Net movements in cash flow reserve
-
-
-
-
-
1,084.1
-
1,084.1
Total other comprehensive income
-
-
-
-
-
1,084.1
-
1,084.1
Total comprehensive (loss)/income
-
-
-
-
(240.8)
1,084.1
-
843.3
Transactions with owners of the
Company recognised directly in equity
Issue of ordinary equity shares
6.5
0.1
112.2
-
(65.5)
-
-
46.8
Additional share premium on the allotment of shares
-
-
54.4
-
(54.4)
-
-
-
Share-based payments
-
-
-
-
-
-
8.6
8.6
Transfer of exercised and expired share based awards
-
-
-
-
9.3
-
(9.3)
-
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
1 CDP
– Carbon Disclosure Project is an independent, non-profit,
global environmental reporting organisation.
2 Sustainalytics
– a leading independent ESG & corporate governance
research, ratings & analytics firm.
MD&A
Year Ended March 31, 2022 (“FY22”)
Introduction
The
Ryanair Group’s fleet was effectively grounded as a result of
European Governments’ Covid-19 travel restrictions/lockdowns
for much of the prior year comparative (year ended March 31,
2021). Sectors (+197%) and traffic (+253%) are therefore
significantly higher in the year ended March 31, 2022 (although
still below pre Covid-19 levels) and 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 FY22
results excluding the exceptional item referred to
below.
In
FY22, as part of its risk management strategy, the Group utilised
jet fuel call options to set a maximum price for up to 15% 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. An exceptional (pre-tax) unrealised mark-to-market gain
of €131M was recorded on the Group’s jet fuel call
options at March 31, 2022.
Income Statement
Scheduled revenues:
Scheduled
revenues increased by 156% to
€2.65BN due to a 253% increase in traffic, from
27.5M to 97.1M. While traffic increased
significantly, the delayed relaxation of EU Governments’
Covid-19 travel restrictions until July 2021 (October in the case
of the UK Government) combined with the damaging impact of the
Omicron variant and Russia’s invasion of Ukraine in H2, meant
that fares required significant price stimulation. Average fares in
FY22 were down 27% to just €27.
Ancillary revenues:
Ancillary
revenues increased by 258%
to €2.15BN due to a
253% rebound in traffic and a solid performance in priority
boarding and reserved seating.
Total revenues:
As a
result of the above, total revenues increased by 193% to €4.80BN.
Operating Expenses:
Fuel and oil:
Fuel
and oil increased by 237% to
€1.83BN due to a 197% increase in sectors and 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 183% to €813M, below the 197%
increase in sectors and 253% higher traffic.
Depreciation:
Depreciation
increased by 26% to
€719M, primarily due to higher amortisation resulting
from increased aircraft utilisation and the delivery of 61 new
B737-8200 “Gamechanger”
aircraft.
Staff costs:
Staff
costs increased by 46% to
€690M due to higher sectors.
Route charges:
Route
charges rose by 194% to
€551M, broadly in line with higher sectors.
Marketing, distribution and other:
Marketing,
distribution and other doubled to €411M due to higher activity
(including increased in-flight sales), offset by cost
savings.
Maintenance, materials and repairs:
Maintenance,
materials and repairs increased by 24% to €256M due to higher
aircraft utilisation and the handback of 3 leased aircraft during
FY22.
Other expense:
Net
finance expenses increased by €38M to €91M due to higher
average gross debt in the year and negative interest rates on euro
deposits.
In the
prior year, due to an 81% reduction in traffic and aircraft
delivery delays, the Group recorded approximately €200M
ineffectiveness charges on fuel and currency hedges. No hedge
ineffectiveness was recorded in FY22.
Balance sheet:
Gross
cash increased by €0.48BN to €3.63BN at March 31,
2022.
Gross
debt fell by €0.35BN to €5.08BN primarily due to
€1.72BN debt repayments offset by a €1.20BN bond
issuance in May 2021.
Net
debt was €1.45BN at March 31, 2022, a drop of €0.83BN
from €2.28BN at March 31, 2021.
Increased
activity in the twelve months to March 31, 2022 (including a 197%
increase in sectors and 253% rise in traffic), and higher forward
bookings (unearned revenue) led to significant movements in Other
Assets (+€0.24BN), Trade Payables (+€0.56BN), and
Accrued Expenses and Other Liabilities
(+€1.72BN).
Shareholders’ equity:
Shareholders’
equity increased by €0.90BN to €5.54BN primarily due to
a €1.08BN IFRS hedge accounting unrealised gain for
derivatives, offset by the €0.24BN net loss.
Ryanair
Holdings plc and Subsidiaries
Notes
forming Part of the Condensed Consolidated
Preliminary
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 preliminary financial
statements of the Company for the year ended March 31, 2022
comprise the Company and its subsidiaries (together referred to as
the “Group”).
The March 31, 2022
figures and the March 31, 2021 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, 2021, 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 preliminary financial
statements for the year ended March 31, 2022 on May 13,
2022.
Except as stated
otherwise below, this year’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, 2021 and
therefore have been applied by the Group in these condensed
consolidated preliminary financial statements:
●
Amendments to IFRS
4 Insurance Contracts – Deferral of IFRS 9 (effective on or
after January 1, 2021).
●
Amendments to IFRS
9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 Interest Rate Benchmark
Reform – Phase 2 (effective on or after January 1,
2021).
●
Amendment to IFRS
16 Leases – Covid-19 Related Rent Concessions Beyond June 30,
2021 (effective on or after April 1, 2021).
The adoption of
these new or amended standards did not have a material impact on
the Group’s financial position or results in the year ended
March 31, 2022.
New IFRS standards and amendments issued but not yet
effective
The following new
or revised IFRS standards and IFRIC 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 a material impact on our financial position or results
from operations:
●
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
●
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
Making Materiality Judgments: 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 – Deferral of Effective Date
(effective on or after January 1, 2023).*
●
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)*
*These standards or amendments to standards are not as of yet EU
endorsed.
2. Judgements
and estimates
The preparation of
financial statements requires management to make judgements,
estimates and assumptions 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 preliminary 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 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 gains or losses taken to
the income statement. At March 31, 2022, a net asset of
€1.20BN (2021: net liability €46M) was recognised on
balance sheet in respect of the Group’s jet fuel forward
contracts, foreign currency derivative instruments associated with
future jet fuel purchases and carbon credits and a net asset of
€330M (2021: net asset €171M) 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 of 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 March 31,
2022 the Group had entered into jet fuel forward contracts covering
approximately 65% of its estimated requirements for fiscal year
2023 and approximately 5% of its estimated requirements for fiscal
year 2024. The Group believes these hedges to be effective for
hedge accounting purposes.
Long-lived assets – Useful lives, residual values and
impairment
At March 31, 2022,
the Group had €9.10BN of property, plant and equipment
long-lived assets, of which €8.93BN were aircraft. 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 aircraft, and each aircraft’s
useful life is determined to be 23 years. For the 61 new Boeing
737-8200 aircraft delivered during the year ended March 31, 2022,
the Group has determined the estimated useful life to be 23 years
and estimated residual value to be 15% of its current market value
upon delivery. 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 utilization 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
typically results in higher revenues and results.
4. Income
tax expense
The Group’s
consolidated tax credit for the year ended March 31, 2022 of
€189M (March 31, 2021: €94M) comprises a current tax
credit of €10M and a deferred tax credit of €179M
primarily relating to the temporary differences for property, plant
and equipment and net operating losses. This consolidated tax
credit 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. The effective tax rate of approximately 44%
credit for the year ended March 31, 2022 (March 31, 2021:
approximately 8% credit) is the result of the mix of profits and
losses incurred by Ryanair’s operating subsidiaries primarily
in Ireland, Malta, Poland and the UK, and revised assessments of
the value of deferred tax assets in the wake of the Covid-19
pandemic.
5. Share
based payments
The terms and
conditions of the Group’s share-based remuneration programmes
are disclosed in the most recent, published, consolidated financial
statements. The charge of €9M in the year ended March 31,
2022 (March 31, 2021: €4M) is the fair value of options
granted in prior periods and a conditional share grant under LTIP
2019, in fiscal year 2022, to managers across the Group (the
Executive and Non-Executive Directors were not included in this
LTIP grant). The charge is recognised within the income statement
in accordance with employee services rendered. During the year
ended March 31, 2022, 6.5M ordinary shares were issued at strike
prices between €6.25 and €12.00 per share following the
exercise of vested share options.
6. 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.
7. Capital
commitments
At March 31, 2022
the Group had an operating fleet of 471 (2021: 422) Boeing 737s and
29 (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. In the year ended
March 31, 2022, the Group took delivery of 61 of these aircraft.
The remaining aircraft are due to be delivered before the end of
fiscal year 2025.
8. Analysis
of operating segment
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 currently
comprises four key separate airlines, Buzz, Lauda Europe (Lauda),
Malta Air and Ryanair DAC. Ryanair DAC and Malta Air are separate
reportable segments as they each exceed the applicable quantitative
thresholds for reporting 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 optimize consolidated financial
results.
Reportable segment
information is presented as follows:
Ryanair DAC
Malta Air
Other Airlines
Elimination
Total
Year Ended
Mar 31,
Mar 31,
Mar 31,
Mar 31,
Mar 31,
2022
2022
2022
2022
2022
€M
€M
€M
€M
€M
Scheduled revenue
2,616.1
-
36.4
-
2,652.5
Ancillary revenue
2,148.4
-
-
-
2,148.4
Inter-segment revenue
698.5
679.4
406.9
(1,784.8)
-
Segment revenue
5,463.0
679.4
443.3
(1,784.8)
4,800.9
Reportable segment (loss)/profit after income tax (i)
(354.7)
5.9
(6.2)
-
(355.0)
Other segment information:
Net Finance Expense
(87.8)
-
(3.6)
-
(91.4)
Depreciation
(660.1)
-
(59.3)
-
(719.4)
Capital Expenditure
(1,527.8)
-
(5.0)
-
(1,532.8)
Segment assets
14,832.1
69.6
248.1
-
15,149.8
Segment liabilities
8,879.3
85.3
639.9
-
9,604.5
(i) Adjusted loss after tax in the financial year ended March 31,
2022, excludes a net exceptional gain of €114M, attributable
to the fair value measurement of jet fuel call
options.
Ryanair DAC
Malta Air
Other Airlines
Elimination
Total
Year Ended
Mar 31,
Mar 31,
Mar 31,
Mar 31,
Mar 31,
2021
2021
2021
2021
2021
€M
€M
€M
€M
€M
Scheduled revenue
1,020.2
-
15.8
-
1,036.0
Ancillary revenue
599.8
-
-
-
599.8
Inter-segment revenue
586.4
464.2
196.9
(1,247.5)
-
Segment revenue
2,206.4
464.2
212.7
(1,247.5)
1,635.8
Reportable segment (loss) after income tax (i)
(641.6)
(18.7)
(155.1)
-
(815.4)
Other segment information:
Net Finance Expense
(54.7)
-
0.9
-
(53.8)
Depreciation
(506.6)
-
(64.4)
-
(571.0)
Capital Expenditure
(343.0)
-
(33.6)
-
(376.6)
Segment assets
11,898.7
86.7
342.6
-
12,328.0
Segment liabilities
6,830.8
108.3
742.3
-
7,681.4
(i) Adjusted loss after tax in the financial year ended March 31,
2021, excludes a charge of €200M, attributable to a hedge
ineffectiveness charge on jet fuel derivative instruments, foreign
currency derivative instruments related to jet fuel, and aircraft
delivery delays.
The following table
disaggregates revenue by primary geographical market. In accordance
with IFRS 8 paragraph 13, 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 European countries” includes all other
countries in which the Group has operations.
Year Ended
Mar 31, 2022
Year Ended
Mar 31, 2021
€M
€M
Italy
1,188.8
377.5
Spain
873.8
315.7
United Kingdom
564.0
251.4
Ireland
229.6
81.0
Other European countries
1,944.7
610.2
Total revenue
4,800.9
1,635.8
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, 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, paragraph 114.
9. Property,
plant and equipment
Acquisitions and disposals
During the year
ended March 31, 2022, net capital additions amounted to
€1.5BN principally reflecting 61 aircraft deliveries,
aircraft pre-delivery deposits and capitalised maintenance offset
by supplier reimbursements of €114M. In the year ended March
31, 2022 the Group sold 10 Boeing 737-800NG aircraft.
10. Government
grants and assistance
In April 2020, the
Group raised £600M unsecured debt for general corporate
purposes under the HMT and Bank of England CCFF. The 0.44% interest
rate was the prevailing rate for strong BBB rated companies. This
debt was extended in March 2021 for a further 12 months at a 0.46%
interest rate. In October 2021 the Group repaid the £600M HMT
and Bank of England CCFF in full.
During the year
ended March 31, 2022, some European countries in which the Ryanair
Group operates continued to make available payroll support schemes.
The Ryanair Group utilised a number of these employment retention
schemes to protect jobs within the Group. These schemes were a mix
of short term Covid-19 specific programmes and long-term schemes
linked to social security that existed pre Covid-19. The total
amount of payroll supports received by the Group under the various
schemes amounted to approximately €82M (2021: €84M) and
are offset against staff costs in the condensed consolidated
preliminary income statement. Such supports wound down
significantly in H2 FY22.
There are no
unfulfilled conditions attaching to government assistance at March
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 year ended March 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 2021 Annual Report that
could have a material effect on the financial position or
performance of the Group in the same period.
12. 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 condensed
consolidated preliminary 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 2021 Annual Report. There have been no changes in our risk
management policies in the year. While there have been no changes
in our risk management policies in the year, the Group has started
using jet fuel call options to manage some of the risk associated
with rising fuel prices. These options set a maximum price that the
Group will pay for jet fuel.
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 March 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 year ended March 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
March 31, 2022 to arrive at a fair value representing the amount
payable to a third party to assume the obligations.
While there have
been improvements in business and economic circumstances during
fiscal year 2022, 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 preliminary balance
sheet, are as follows:
At Mar 31,
At Mar 31,
At Mar 31,
At Mar 31,
2022
2022
2021
2021
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
160.4
160.4
109.4
109.4
- Jet fuel & carbon derivative forward contracts
22.2
22.2
- Interest rate swaps
2.5
2.5
1.9
1.9
185.1
185.1
111.3
111.3
Current financial assets
Derivative financial instruments:
- U.S. dollar currency forward contracts
313.7
313.7
99.5
99.5
- GBP currency swap
-
-
5.4
5.4
- Jet fuel options
150.5
150.5
- Jet fuel & carbon derivative forward contracts
934.1
934.1
- Interest rate swaps
2.1
2.1
1.1
1.1
1,400.4
1,400.4
106.0
106.0
Trade receivables*
43.5
18.6
Cash and cash equivalents*
2,669.0
2,650.7
Financial asset: cash > 3 months*
934.1
465.5
Restricted cash*
22.7
34.1
5,069.7
1,400.4
3,274.9
106.0
Total financial assets
5,254.8
1,585.5
3,386.2
217.3
At Mar 31,
At Mar 31,
At Mar 31,
At Mar 31,
2022
2022
2021
2021
Carrying
Fair
Carrying
Fair
Amount
Value
Amount
Value
Non-current financial liabilities
€M
€M
€M
€M
Derivative financial instruments:
- U.S. dollar currency forward contracts
-
-
6.4
6.4
-
-
6.4
6.4
Non-current maturities of debt
- Long-term debt
924.8
927.1
1,077.5
1,083.2
- Bonds
2,789.8
2,792.1
2,440.3
2,545.5
3,714.6
3,719.2
3,517.8
3,628.7
Trade payables
49.2
49.2
179.9
179.9
3,763.8
3,768.4
3,704.1
3,815.0
Current financial liabilities
Derivative financial instruments:
- Jet fuel & carbon derivative contracts
7.6
7.6
19.8
19.8
- U.S. dollar currency forward contracts
31.0
31.0
59.4
59.4
38.6
38.6
79.2
79.2
Current maturities of debt
- Short-term debt
152.1
152.1
875.1
875.1
- Promissory notes
225.9
225.9
-
-
- Bonds
846.5
855.0
850.8
852.6
1,224.5
1,233.0
1,725.9
1,727.7
Trade payables*
1,029.0
336.0
Accrued expenses*
953.0
888.2
3,245.1
1,271.6
3,029.3
1,806.9
Total financial liabilities
7,008.9
5,040.0
6,733.4
5,621.9
*The fair value of these financial instruments approximate their
carrying values due to the short-term nature of the
instruments.
The Group issued
senior, unsecured bonds for €1.2BN in May 2021. The bond has
a coupon of 0.875% and a maturity date of May 2026. During the year
ended March 31, 2022 the Group repaid the maturing €850M
(2014) Eurobond issued at a coupon of 1.875% and repaid the
£600M HMT and Bank of England CCFF in full.
During the year
ended March 31, 2022, the Group issued promissory notes to the
value of €226M with maturity dates of October 2022. The 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.
13. Shareholders’
equity and shareholders’ returns
During the year
ended March 31, 2022 6.5M ordinary shares were issued at a strike
price between €6.25 and €12.00 per share following the
exercise of vested options for total proceeds of €47M. There
were no shareholder returns during the year ended March 31,
2022.
14. Going
concern
The Directors,
having made inquiries, including consideration of the possible
future financial effects associated with the Covid-19 pandemic,
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
condensed consolidated preliminary financial statements. While
there is uncertainty as to the full extent of the impact on the
Ryanair Group, the continued preparation of the Group’s
condensed consolidated preliminary 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
liquidity with €3.63BN cash at March 31, 2022, a
€0.83BN reduction in net debt when compared to March 31, 2021
(despite €1.18BN capital expenditure) and the Group’s
continued focus on cash management;
●
The Group’s
solid BBB credit ratings combined with a stable outlook (from both
S&P and Fitch Ratings);
●
The Group’s
strong balance sheet position with over 90% of its B737 fleet
unencumbered;
●
The Group’s
access to the debt capital markets. In May 2021, the Group raised a
€1.2BN, 5-year unsecured, Eurobond at a coupon of
0.875%;
●
Ongoing cost
reductions across the Group, coupled with the Group’s ability
(as evidenced throughout the Covid-19 crisis) to preserve cash and
reduce operational and capital expenditure in a
downturn;
●
The widespread
rollout of the Covid-19 vaccine and booster programme in
Europe;
●
Increased bookings
and passenger traffic; and
●
The Group’s
flexibility to react quickly to improved customer demand following
vaccine rollouts and the launch of EU Digital Covid Certificates in
2021.
15. Post
balance sheet events
There were no
significant post balance sheet events.
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf
by the undersigned, hereunto duly authorized.