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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
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contained
in this Form is also thereby furnishing the information to
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pursuant to Rule 12g3-2(b) under the Securities
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No ..X..
If
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in
connection with Rule 12g3-2(b): 82- ________
RYANAIR REPORTS H1 LOSS OF €48M AS TRAFFIC REBOUNDS AT LOWER
FARES
Ryanair
Holdings today (1 Nov.) reported a H1 loss of €48m, compared
to a PY H1 loss of €411m. Highlights of this 6-month period
include:
●
H1 traffic
rebounded by 128% from 17.1m to 39.1m.
●
1st B737-8200
“Gamechanger”
delivered in June (65+ for peak S.22).
●
Customer Advisory
Panel 1st
met in Sept.
●
€1.2bn 5-year
unsecured bond issued in May at record low 0.875%
coupon.
●
Strong Sept. cash
balance of €4.24bn (up from €3.15bn at 31
Mar.).
●
Net debt fell from
€2.28bn at 31 Mar. to €1.50bn at 30 Sept. (CCFF
£600m loan repaid in Oct).
●
560 new routes
& 14 new bases announced for W.21/S.22.
●
5-year growth
accelerates to 225m p.a. by FY26 (prev. 200m p.a.).
H1 – Group
30 Sept. 2020
30 Sept. 2021
Change
Customers
17.1m
39.1m
+128%
Load
Factor
72%
79%
+7pts
Revenue
€1.18bn
€2.15bn
+83%
Op.
Costs
€1.35bn
€2.20bn
+63%
Net
Loss
(€411m)
(€48m)
n/m
Ryanair’s Michael O’Leary, said:
OUR ENVIRONMENT:
Ryanair
has shown we can grow traffic while reducing our impact on the
environment. Every passenger that switches to Ryanair from legacy
airlines reduces their CO₂ emissions by up to 50% per flight.
Over the next 5-years our traffic will grow by 50% to 225m p.a.
This will be achieved on a fleet of new B737 “Gamechanger” aircraft,
which offer 4% more seats, but consume 16% less fuel and cuts noise
emissions by 40%, which helps to lower each passenger’s
CO₂ and noise footprint over the next decade.
We
continue to work with the EU, our fuel suppliers and aircraft
manufacturers to incentivise sustainable aviation fuel (SAF) use.
We are working with A4E and the EU Commission to accelerate reform
of the Single European Sky, to minimise ATC delays which will lower
fuel consumption and CO₂ emissions. Last year Ryanair
received an industry leading “B-” climate protection
rating from CDP1, and we are committed to improving this
to an “A” rating over the next 2 years. In April, we
established a Sustainable Aviation Research Centre partnership with
Trinity College Dublin to accelerate the development of SAFs.
Ryanair’s goal is to power 12.5% of our flights with SAF by
2030. These initiatives will help Ryanair achieve our target of
cutting CO₂ per passenger/km by 10% to just 60 grams by
2030.
Our
growth plans over the next 5 years will create 5,000 new jobs for
pilots, cabin crew and engineers. Ryanair recently invested
€50m in an Aviation Skills Training Centre in Dublin and we
plan to invest over €100m in 2 more, high skills, training
centres in possibly Spain and Poland during this
period.
In
Sept. our Customer Advisory Panel met for the first time in Dublin.
This Panel will meet again in the spring and their advice and input
will shape Ryanair’s customer improvements for 2022,
reinforcing our commitment to delivering the lowest fares, the most
on-time flights and a great customer service as the Group
stimulates very strong post Covid-19 growth. We have already
implemented a number of their suggestions, including a Day of
Travel feature in the Ryanair App to assist customers through every
step of their Ryanair journey.
COVID-19 – RAPID RECOVERY & GROWTH:
Following
a very badly disrupted Q1, which saw most Easter flights cancelled
and a slower than expected easing of EU Govt. travel restrictions
in May and June, traffic rebounded in Q2 with the successful
rollout of the EU Digital Covid Certificates (“DCC”) in
July. H1 bookings were mostly “close-in” and required
price stimulation, particularly to/from the UK where consumer
confidence was undermined (until early Oct.), by the UK
Govt.’s confusing and inconsistent traffic light system. In
recent weeks, we have seen a surge in bookings for the Oct.
mid-term and Christmas breaks and we expect this peak buoyancy to
continue into Easter and S.22. We will continue our load
active/yield passive recovery strategy as we rebuild load factors
(consistently above 80% in Q2) and, in time, yields over the second
half of FY22.
The
Covid-19 crisis accelerated the collapse of many European airlines
including Flybe, Norwegian, Germanwings, Level, Stobart and led to
substantial capacity cuts at many others including Alitalia, 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 many years.
Ryanair was one of the very few airlines to use the Covid crisis to
place significant aircraft orders, to expand our airport
partnerships and to secure lower operating costs so that we can
pass on even lower fares, post Covid, to our customers. Together
with our airport partners, we are leading Europe’s traffic
recovery and we plan to deliver accelerated growth in both traffic
and jobs over the next 5 years.
During
H1 our Route Development team continued their work with airport
partners across Europe, and have negotiated lower airport costs,
recovery incentives and the extension of many low-cost airport
growth deals. In addition to its new base deals (Agadir, Billund,
Chania, Corfu, Rhodes, Riga, Stockholm, Venice Treviso, Turin,
Zadar & Zagreb), over 560 new route announcements and long-term
extensions of low-cost growth deals in Stansted (to 2028), Bergamo
(to 2028), Manchester (to 2028), East Midlands (to 2028), Charleroi
(to 2030), the Group has doubled its capacity in Rome (Fiumicino),
Lisbon, Vienna and will launch new bases in Cork, Newcastle and
Venice (Marco-Polo) for S.22.
In June
Ryanair took delivery of our first B737-8200 “Gamechanger” aircraft (from our
210 orderbook) and we expect to have over 65 in the Group fleet by
S.22. These Gamechangers will, we believe, further widen the cost
gap between Ryanair and all other European airlines over the next
decade. While load factors have yet to recover to pre-Covid levels,
the performance of the Gamechangers has exceeded our expectations
this summer. Operational reliability, fuel consumption and
CO₂ emissions have, so far, exceeded guidelines with very
positive passenger and crew feedback to these new, more fuel
efficient, quieter aircraft. Based on our 210 order book and
available fleet capacity, we plan to accelerate our traffic growth
to 225m p.a. by FY26.
H1 FY22 BUSINESS REVIEW:
Revenue & Costs
H1
scheduled revenues increased 61% to €1.27bn as traffic jumped
128% from 17.1m to 39.1m (at a 79% load factor). The Covid
disruption of Easter traffic, the delayed relaxation of EU travel
restrictions into May/June, and the uncertainty caused by the
UK’s confusing traffic light system this summer and the
close-in nature of bookings required price stimulation –
resulting in average fares of just €33 (down 30% on H1 last
year). Ancillary revenue continued its strong performance,
generating over €22.50 per passenger, as guests choose
priority boarding and reserved seating. Total revenue increased by
over 80% to €2.15bn in H1.
While
sectors and traffic more than doubled, operating costs increased by
just 63% to €2.20bn, driven primarily by lower variable costs
such as aircraft, airport & handling, route charges and fuel.
Lower costs, coupled with rising load factors, led to a marked
reduction in cost per passenger (ex-fuel) to €38. We expect
to see further improvements in costs as our new, lower cost, more
fuel-efficient aircraft deliver and EU countries (such as Ireland,
Spain & Italy) rollout Covid recovery incentive
schemes.
Our
fuel requirements are 80% hedged for Q4 FY22 (50% jet swaps at
$580, with the balance hedged with caps at $750 per met. tonne). H1
FY23 is 80% hedged (60% jet swaps at $620 and 20% caps at $715) and
H2 FY23 is 60% hedged at $625. Carbon credits are fully hedged for
FY22 and 70% hedged for FY23 at €24 and €40 per EUA
respectively.
Balance Sheet & Liquidity
Ryanair’s
balance sheet is one of the strongest in the industry with a BBB
credit rating (S&P and Fitch), €4.24bn cash and almost
90% of our B737 fleet unencumbered. In May Ryanair issued a
€1.2bn 5-year, unsecured, bond at a record low coupon of just
0.875%. In June the Group repaid its (2014) maturing €850m
1.875% bond and last week the Group repaid its UK CCFF £600m
loan 5 months early. Strong operating cashflows and supplier
reimbursements, offset by capex, drove a €0.8bn reduction in
net debt to €1.5bn at 30 Sept. (31 March: €2.3bn).
During Q2 the Group agreed to sell its 10 oldest B737NGs. 2 of
these aircraft were delivered in Sept. and the remainder will exit
the fleet before the financial year end. The strength of
Ryanair’s balance sheet ensures that the Group can capitalise
rapidly on the many growth opportunities that exist in Europe in
the post Covid-19 recovery.
POTENTIAL LSE DELISTING:
Trading
on the London Stock Exchange (“LSE”) as a percentage of
overall trading volume in Ryanair’s ordinary shares has
reduced materially during 2021. The migration away from the LSE is
consistent with a general trend for trading in shares of EU
corporates post Brexit and is, potentially, more acute for Ryanair
as a result of the long-standing prohibition on non-EU citizens
purchasing Ryanair's ordinary shares being extended to UK nationals
following Brexit. The Board of Ryanair is now considering the
merits of retaining the Standard listing on the LSE. Ryanair has a
primary listing on the regulated market of Euronext Dublin, which
offers shareholders the highest standard of protection, including
compliance with the UK Corporate Governance Code, and its ADRs are
listed on NASDAQ.
OUTLOOK:
The
outlook for pricing and yields for the winter of FY22 will be
challenging. With the booking curve remaining very close-in,
traffic recovery will require continuing price stimulation. This,
coupled with rising costs for the small unhedged balance of our
fuel needs, means that visibility for the remainder of FY22 is very
limited. It is therefore difficult to provide meaningful FY22
guidance. We believe that FY22 traffic has improved to just over
100m and (subject to winter fares) expect to record an FY22 loss of
between €100m to €200m. This outturn will be crucially
dependent on the continued rollout of vaccines and no adverse
Covid-19 developments.
ACCELERATED POST-COVID GROWTH:
As
noted above, subject to no adverse Covid developments, and high
vaccination levels remaining across Europe, Ryanair will take
delivery of 210 Gamechanger aircraft over the next 5 years which
allows Ryanair uniquely to accelerate growth into the post Covid-19
recovery. These aircraft deliver industry lowest costs, lower
emissions, and will enable Ryanair to exploit growth opportunities
at primary and secondary airports all over Europe - particularly
where legacy carriers have failed or cut back their fleet as a
result of Covid-19 and State Aid. As announced at our AGM in Sept.,
Ryanair Group now expect to deliver accelerated growth over the
next 5 years, with the growth forecast raised from 33% to 50%. As a
result, Ryanair’s pre-Covid traffic of 149m is expected to
grow to over 225m guests p.a. by March 2026 (previously targeted at
200m p.a.).”
ENDS
For
further information
please
contact:
www.ryanair.com
Neil
Sorahan
Ryanair
Holdings plc
Tel: +353-1-9451212
Piaras
Kelly
Edelman
Tel: +353-1-6789333
Ryanair Holdings plc, Europe’s largest airline group, is the
parent company of Buzz, Lauda, Malta Air & Ryanair. Carrying
149m guests p.a. (pre Covid-19) on more than 2,500 daily flights
from over 89 bases, the Group connects over 230 destinations in 37
countries on a fleet of 467 aircraft, with a further 190 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 17,000 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 and unforeseen security events.
1 CDP
– Carbon Disclosure Project is an independent, non-profit,
global environmental reporting organisation.
Ryanair Holdings plc and Subsidiaries
Condensed Consolidated Interim Balance Sheet as at September 30,
2021 (unaudited)
At Sep 30,
At Mar 31,
2021
2021
Note
€M
€M
Non-current assets
Property, plant and equipment
10
8,489.9
8,361.1
Right-of-use asset
160.8
188.2
Intangible assets
146.4
146.4
Derivative financial instruments
11
214.3
111.3
Deferred tax
13.2
14.0
Other assets
52.8
48.7
Total non-current assets
9,077.4
8,869.7
Current assets
Inventories
3.6
3.6
Other assets
283.7
179.8
Assets Held for sale
10
82.1
-
Trade receivables
11
39.7
18.6
Derivative financial instruments
11
342.1
106.0
Restricted cash
22.7
34.1
Financial assets: cash > 3 months
100.0
465.5
Cash and cash equivalents
4,118.2
2,650.7
Total current assets
4,992.1
3,458.3
Total assets
14,069.5
12,328.0
Current liabilities
Provisions
-
10.3
Trade payables
11
788.5
336.0
Accrued expenses and other liabilities
1,947.1
1,274.9
Current lease liability
55.1
52.5
Current maturities of debt
11
858.5
1,725.9
Derivative financial instruments
11
28.1
79.2
Current tax
53.9
48.1
Total current liabilities
3,731.2
3,526.9
Non-current liabilities
Provisions
67.4
47.4
Trade
payables
11
240.7
179.9
Derivative
financial instruments
11
4.1
6.4
Deferred
tax
263.0
272.4
Non-current
lease liability
103.5
130.6
Non-current
maturities of debt
11
4,726.7
3,517.8
Total non-current liabilities
5,405.4
4,154.5
Shareholders' equity
Issued share capital
12
6.7
6.7
Share premium account
12
1,166.0
1,161.6
Other undenominated capital
12
3.5
3.5
Retained earnings
12
3,185.6
3,232.3
Other reserves
571.1
242.5
Shareholders' equity
4,932.9
4,646.6
Total liabilities and shareholders' equity
14,069.5
12,328.0
Ryanair Holdings plc and Subsidiaries
Condensed Consolidated Interim Income Statement for the Half-Year
ended September 30, 2021 (unaudited)
Half-Year
Ended
Sep 30,
Half-Year Ended
Sep 30,
Change
2021
2020
Note
%
€M
€M
Operating revenues
Scheduled revenues
+61%
1,273.3
790.8
Ancillary revenues
+129%
881.6
385.4
Total operating revenues
8
+83%
2,154.9
1,176.2
Operating expenses
Fuel and oil
-108%
713.1
343.0
Airport and handling charges
-99%
336.9
169.7
Depreciation
-13%
336.2
296.5
Staff costs
-29%
303.1
234.7
Route charges
-99%
230.0
115.3
Marketing, distribution and other
-58%
168.3
106.4
Maintenance, materials and repairs
-43%
117.8
82.6
Aircraft rentals
-
4.8
Total operating expenses
-63%
2,205.4
1,353.0
Operating (loss)
(50.5)
(176.8)
Other income/(expenses)
Net finance expense
-192%
(44.7)
(15.3)
Foreign exchange/hedge ineffectiveness
+98%
(4.7)
(240.2)
Total other (expenses)
+81%
(49.4)
(255.5)
(Loss) before tax
(99.9)
(432.3)
Tax credit on (loss)
4
52.3
21.8
(Loss) for the half-year – all attributable to equity holders
of parent
(47.6)
(410.5)
(Loss) per ordinary share (€)
Basic
9
+89%
(0.0422)
(0.3752)
Diluted
9
+89%
(0.0422)
(0.3752)
Weighted avg. no. of ord. shares (in Ms)
Basic
9
1,128.4
1,094.0
Diluted
9
1,128.4
1,094.0
*’+’ is favourable and ‘-‘ is adverse
period-on-period.
Ryanair Holdings plc and Subsidiaries
Condensed Consolidated Interim Income Statement for the Quarter
ended September 30, 2021 (unaudited)
Quarter
Ended
Sep 30,
Quarter
Ended
Sep 30,
Change
2021
2020
Note
%
€M
€M
Operating revenues
Scheduled revenues
+57%
1,081.4
690.1
Ancillary revenues
+95%
703.0
360.9
Total operating revenues
8
+70%
1,784.4
1,051.0
Operating expenses
Fuel and oil
-67%
556.5
334.1
Airport and handling charges
-65%
249.8
151.6
Depreciation
-24%
201.9
162.5
Staff costs
-16%
192.1
166.2
Route charges
-57%
177.7
113.0
Marketing, distribution and other
-51%
96.4
64.0
Maintenance, materials and repairs
-21%
56.0
46.4
Aircraft rentals
-
2.4
Total operating expenses
-47%
1,530.4
1,040.2
Operating profit
254.0
10.8
Other income/(expenses)
Net finance expense
-295%
(23.3)
(5.9)
Foreign exchange/hedge ineffectiveness
+97%
(6.1)
(227.3)
Total other (expense)
+87%
(29.4)
(233.2)
Profit/(loss) before tax
224.6
(222.4)
Tax credit/(expense) on profit/(loss)
4
0.4
(3.1)
Profit/(loss) for the quarter – attributable to equity
holders of parent
225.0
(225.5)
Earnings/(loss)
per ordinary share (€)
Basic
9
+197%
0.1994
(0.2053)
Diluted
9
+196%
0.1975
(0.2053)
Weighted
avg. no. ord. shares (in Ms)
Basic
9
1,128.6
1,098.6
Diluted
9
1,139.5
1,098.6
*’+’ is favourable and ‘-‘ is adverse
period-on-period.
Ryanair Holdings plc and Subsidiaries
Condensed Consolidated Interim Statement of Comprehensive Income
for the Half-Year ended
September 30, 2021 (unaudited)
Half-Year
Half-Year
Ended
Ended
Sep 30,
2021
Sep 30,
2020
€M
€M
(Loss) for the half-year
(47.6)
(410.5)
Other comprehensive income:
Items that are or may be reclassified to profit or
loss:
Movements in hedging reserve, net of tax:
Net
movements in cash-flow hedge reserve
324.3
69.1
Other comprehensive income for the half-year, net of income
tax
324.3
69.1
Total comprehensive income/(loss) for the half-year – all
attributable to equity holders of parent
276.7
(341.4)
Ryanair Holdings plc and Subsidiaries
Condensed Consolidated Interim Statement of Comprehensive Income
for the quarter ended
September 30, 2021 (unaudited)
Quarter
Quarter
Ended
Ended
Sep 30,
2021
Sep 30,
2020
€M
€M
Profit/(loss) for the quarter
225.0
(225.5)
Other comprehensive income:
Items that are or may be reclassified to profit or
loss:
Movements in hedging reserve, net of tax:
Net
movement in cash-flow hedge reserve
234.7
103.1
Other comprehensive income for the quarter, net of income
tax
234.7
103.1
Total comprehensive income/(loss) for the quarter – all
attributable to equity holders of parent
459.7
(122.4)
Ryanair Holdings plc and Subsidiaries
Condensed Consolidated Interim Statement of Cash Flows for the
Half-Year ended September 30, 2021 (unaudited)
Half-Year
Half-Year
Ended
Ended
Sep 30,
2021
Sep 30,
2020
Note
€M
€M
Operating activities
(Loss) after tax
(47.6)
(410.5)
Adjustments to reconcile profit after tax to net cash from
operating activities
Depreciation
336.2
296.5
Increase in inventories
-
(0.4)
Tax (credit) on loss
(52.3)
(21.8)
Share based payments
5
5.2
2.1
(Increase)/decrease in trade receivables
(21.1)
34.5
(Increase)/decrease in other assets
(118.5)
19.1
Increase/(decrease) in trade payables
248.1
(108.6)
Increase/(decrease) in accrued expenses
693.5
(868.8)
Decrease in provisions
9.6
11.1
Decrease in finance income
-
2.2
Increase in finance expense
(22.1)
(14.9)
Hedge ineffectiveness/foreign exchange
-
(97.4)
Income tax paid
8.5
(1.0)
Net cash inflow/(outflow) from operating activities
1,039.5
(1,157.9)
Investing activities
Capital expenditure - purchase of property, plant and
equipment
(311.4)
(107.9)
Disposal proceeds
28.2
-
Supplier reimbursements
10
113.9
250.4
Decrease in restricted cash
11
11.4
0.3
Decrease/(increase) in financial assets: cash > 3
months
11
365.5
(308.9)
Net cash (used in) investing activities
207.6
(166.1)
Financing activities
Net proceeds from shares issued
12
4.4
403.5
Proceeds from long term borrowings
11
1,192.0
1,540.0
Repayments of long term borrowings
11
(943.3)
(132.3)
Lease liabilities paid
(28.6)
(38.2)
Net cash from financing activities
224.5
1,773.0
Increase in cash and cash equivalents
1,471.6
449.0
Net foreign exchange differences
(4.1)
(63.3)
Cash and cash equivalents at beginning of the period
2,650.7
2,566.4
Cash and cash equivalents at end of the period
11
4,118.2
2,952.1
Ryanair Holdings plc and Subsidiaries
Condensed Consolidated Interim Statement of Changes in
Shareholders’ Equity for the Half-Year ended
September 30, 2021 (unaudited)
Ordinary
Issued
Share
Share
Premium
Retained
Other
Undenom.
Other
Shares
Capital
Account
Earnings
Capital
Hedging
Reserves
Total
M
€M
€M
€M
€M
€M
€M
€M
Balance at March 31, 2020
1,089.2
6.5
738.5
4,245.0
3.5
(111.3)
32.3
4,914.5
Loss for the half-year
-
-
-
(410.5)
-
-
-
(410.5)
Other comprehensive income
Net movements in cash flow reserve
-
-
-
-
-
69.1
-
69.1
Total other comprehensive income
-
-
-
-
-
69.1
-
69.1
Total comprehensive income
-
-
-
(410.5)
-
69.1
-
(341.4)
Transactions with owners of the Company recognised directly in
equity
Issue of ordinary equity shares
36.1
0.2
405.6
(2.3)
-
-
-
403.5
Share-based payments
-
-
-
-
-
-
-
0.9
-
-
-
-
2.1
(0.9)
2.1
-
Transfer of exercised and expired share based awards
Balance at September 30, 2020
1,125.3
6.7
1,144.1
3,833.1
3.5
(42.2)
33.5
4,978.7
Loss for the half-year
-
-
-
(604.6)
-
-
-
(604.6)
Other comprehensive income
Net movements in cash flow reserve
-
-
-
-
-
253.5
-
253.5
Total other comprehensive income
-
-
-
-
-
253.5
-
253.5
Total comprehensive income
-
-
-
3,228.5
-
253.5
-
253.5
Transactions with owners of the Company recognised directly in
equity
Issue of ordinary equity shares
2.8
-
17.5
-
-
-
-
17.5
Share-based payments
-
-
-
-
-
-
1.5
1.5
Transfer of exercised and expired share based awards
-
-
-
3.8
-
-
(3.8)
-
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 half-year
-
-
-
(47.6)
-
-
-
(47.6)
Other comprehensive income
Net movements in cash flow reserve
-
-
-
-
-
324.3
-
324.3
Total other comprehensive income
-
-
-
-
-
324.3
-
324.3
Total comprehensive income
-
-
-
(47.6)
-
324.3
-
276.7
Transactions with owners of the Company recognised directly in
equity
-
-
-
-
-
-
-
-
Issue of ordinary equity shares
0.7
-
4.4
-
-
-
-
4.4
Share-based payments
-
-
-
-
-
-
5.2
5.2
Transfer of exercised and expired share based awards
-
-
-
0.9
-
(0.9)
-
Balance at September 30, 2021
1,128.8
6.7
1,166.0
3,185.6
3.5
535.6
35.5
4,932.9
Ryanair Holdings plc and Subsidiaries
MD&A Half-Year Ended September 30, 2021
Introduction
The
Ryanair Group’s fleet was effectively grounded due to
European Governments travel restrictions/ lockdowns for much of the
prior year comparative (half-year ended September 30, 2020).
Sectors (up 100%) and traffic (+128%) are therefore significantly
higher in the half-year ended September 30, 2021 (although still
below pre Covid-19 levels) and the following discussion should be
read in that context.
Income Statement
Scheduled revenues:
Scheduled
revenues increased by 61% to
€1,273.3M due to a 128% increase in traffic, from
17.1M to 39.1M. While traffic increased
significantly, the delayed relaxation of Government travel
restrictions across the EU and the UK meant that fares required
significant price stimulation, with average fares down
30%.
Ancillary
revenues:
Ancillary
revenues increased to €881.6M due to a 128% 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 83% to €2,154.9M.
Operating Expenses:
Fuel and oil:
Fuel
and oil increased by €370.1M
(+108%) to €713.1M due to a 100% increase in sectors
flown and higher jet fuel prices.
Airport and handling charges
Airport
and handling charges rose by €167.2M (+99%) to €336.9M
due to a doubling of sectors and a 128% increase in
traffic.
Depreciation:
Depreciation
increased by 13% to
€336.2M, primarily due to higher amortisation
resulting from increased aircraft utilisation and the delivery of
20 new Boeing 737-8200 aircraft in the period.
Staff costs:
Staff
costs increased by 29% to
€303.1M due to higher sectors.
Route charges:
Route
charges increased by 99% to
€230.0M, broadly in line with higher
sectors.
Marketing, distribution and other:
Marketing,
distribution and other rose by 58%
to €168.3M due to higher activity in the period,
offset by cost savings.
Maintenance, materials and repairs:
Maintenance,
materials and repairs increased by 43% to €117.8M due to higher
aircraft utilisation and the handback of leased aircraft in the
period.
Other
expense:
Finance
expenses increased by €29.4M
to €44.7M due to higher gross debt and negative
average interest rates on euro deposits.
Balance sheet:
Gross
cash increased by €1.09BN to €4.24BN at September 30,
2021.
Gross
debt increased by €0.32BN to €5.74BN primarily due to a
€1.20BN bond issuance in May 2021, offset by €0.94BN
debt repayments and €29.0M lease liability
payments.
Net
debt was €1.50BN at September 30, 2021. This is a
€0.77BN reduction from €2.28BN at March 31,
2021.
Increased
activity in the period (including a 100% increase in sectors and
128% rise in traffic), and higher forward bookings (unearned
revenue) led to significant movements in Other Assets
(+€0.10BN), Trade Payables (+€0.51BN), and Accrued
Expenses and Other Liabilities (+€0.67BN)
Shareholders’ equity:
Shareholders’
equity increased by €0.29BN to €4.93BN in the period
primarily due to an IFRS hedge accounting unrealised gain for
derivatives of €0.32BN, offset by the €47.6M net
loss.
MD&A Quarter Ended September 30, 2021
Introduction
As a
result of European Government’s Covid-19 travel
restrictions/lockdowns during the prior year comparative (quarter
ended September 30, 2020), the Group experienced a significant
reduction in traffic. In the quarter ended September 30, 2021,
following the rollout of EU Digital Covid Certificates in July,
sectors rose 64% and traffic increased by 86% to 31.0M. The
following discussion should be read in that context.
Income Statement
Scheduled
revenues:
Scheduled
revenues increased by 57% to
€1,081.4M due to an 86% increase in traffic, from
16.7M to 31.0M. While traffic increased
significantly, the close-in nature of bookings and uncertainty
around UK travel restrictions meant that fares required significant
price stimulation.
Ancillary revenues:
Ancillary revenues
rose by 95% to €703.0M
due to an 86% increase in traffic and a solid performance in
priority boarding and reserved seating.
Total revenues:
As a
result of the above, total revenues increased by 70% to €1,784.4M.
Operating Expenses:
Fuel and oil:
Fuel
and oil increased by 67% to
€556.5M due to a 64% increase in sectors flown and
higher jet fuel prices, offset by an improved fuel burn.
Airport
and handling charges:
Airport
and handling charges rose 65% to
€249.8M due to a 64% increase in sectors and 86% more
passengers.
Depreciation:
Depreciation
increased by 24% to
€201.9M, primarily due to higher amortisation as a
result of increased aircraft utilisation and the delivery of 20 new
Boeing 737-8200 aircraft in the quarter.
Staff costs:
Staff
costs increased by 16% to
€192.1M due to higher sectors.
Route charges:
Route
charges increased by 57% to
€177.7M, due to 64% more sectors.
Marketing, distribution and
other:
Marketing,
distribution and other increased by 51% to €96.4M due to higher
activity in the quarter.
Maintenance, materials and repairs:
Maintenance,
materials and repairs increased by 21% to €56.0M due to higher
aircraft utilisation.
Other expense:
Finance
expenses increased by €17.4M
to €23.3M primarily due to higher gross debt and
negative average interest rates on euro deposits.
Ryanair
Holdings plc and Subsidiaries
Interim
Management Report
Introduction
This
financial report for the half-year ended September 30, 2021 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 six months of the
year;
●
Related party
transactions; and
●
Post balance sheet
events.
Results
of operations for the six-month period ended September 30, 2021
compared to the six-month period ended September 30, 2020,
including important events that occurred during the half-year, are
set forth above in the MD&A.
Principal risks and uncertainties for the remainder of the
year
The
full extent of the ongoing impact of Covid-19 on the Group’s
longer-term operational and financial performance will depend on
future developments, many of which are outside of the Group’s
control, including the duration and spread of Covid-19 and related
travel advisories and restrictions, the impact of Covid-19 on
overall long-term demand for air travel, the impact of Covid-19 on
the financial health and operations of the Group’s business
partners (particularly Boeing), and future governmental actions,
all of which are highly uncertain and cannot be
predicted.
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, actions of the
Irish, UK, European Union (“EU”) and other governments
and their respective regulatory agencies, delays in the delivery of
contracted aircraft, 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 UK, and Continental Europe, the general willingness of
passengers to travel, other economic, social and political factors
and unforeseen security events.
Board of Directors
With
the exception of Geoff Doherty, who joined the Board in October
2021, details of the members of the Group’s Board of
Directors are set forth on page 16 of the Group’s 2021 annual
report.
Related party transactions – Please see note 13.
Post balance sheet events – Please see note 15.
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 interim 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 consolidated interim
financial statements on the going concern basis is supported by the
financial projections prepared by the Group.
In
arriving at this decision to adopt the going concern basis of
accounting, the Board has considered, among other
things:
●
The Group’s
net profit of €225M in the quarter ended September 30,
2021;
●
The Group’s
liquidity with over €4.24BN cash at September 30, 2021, a
€0.77BN reduction in net debt in the first half-year and the
Group’s continued focus on cash management;
●
The Group’s
solid BBB credit ratings (from both S&P and Fitch
Ratings);
●
The Group’s
strong balance sheet position with almost 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 low coupon of
0.875%;
●
The repayment of
the HMT & Bank of England CCFF £600M loan in October means
that the Group has no significant debt maturities until
2023;
●
Ongoing cost
reductions across the Group;
●
The widespread
rollout of Covid-19 vaccines in Europe;
●
Increased
bookings;
●
The Group’s
flexibility to react quickly to improved customer demand following
vaccine rollouts, the launch of EU Digital Covid Certificates, the
relaxation of quarantine requirements for vaccinated arrivals to
the UK, and the expected further easing of European Governments
travel restrictions/lockdowns over the coming months;
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 half-year ended September 30,
2021 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 2021 Annual Report for the year ended
March 31, 2021, 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, 2021, are available at http://investor.ryanair.com/.
The
September 30, 2021 figures and the September 30, 2020 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, 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 condensed consolidated interim financial
statements for the half-year ended September 30, 2021 on October
29, 2021.
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 standards, amendments and
interpretations, have been issued by the IASB, and have also been
endorsed by the EU (unless otherwise stated). These standards are
effective for the first time for the Group’s financial year
beginning on April 1, 2021. The adoption of these new or amended
standards did not have either a material impact, or any impact, on
the Group’s financial position or performance in the
half-year ended September 30, 2021.
●
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).
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:
●
Annual Improvements
2018-2020 (effective on or after January 1, 2022).
●
Amendments to IAS
37 Provisions, Contingent
Liabilities and Contingent Assets: Onerous Contracts –
Cost of Fulfilling a Contract (effective for on or after January 1,
2022).
●
Amendments to IAS
16 Property, Plant and
Equipment: Proceeds before Intended Use (effective on or
after January 1, 2022).
●
Amendments to IFRS
3 Business Combinations:
Reference to the Conceptual Framework (effective on or after
January 1, 2022).
●
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 and
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).*
* 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 and options for the purchase of its
jet fuel (jet kerosene) 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 recognises all derivative instruments as either assets or
liabilities in its consolidated balance sheet and measures them at
fair value. At September 30, 2021, a net asset of €238.0M
(March 31, 2021: net liability €46.0M) was recognised on
balance sheet in respect of the Group’s jet fuel derivative
instruments and a net asset of €247.0M (March 31, 2021: net
asset €171.0M) 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 timing of the full
removal of flight restrictions imposed by governments relating to
the Covid-19 pandemic, the expected recovery of passenger demand
and the subsequent flight schedules. 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
September 30, 2021 the Group had entered into forward jet fuel
hedging contracts covering approximately 60% of its estimated
requirements for fiscal year 2022 and approximately 50% of its
estimated requirements for fiscal year 2023. The Group believes
these hedges to be effective for hedge accounting
purposes.
Long-lived assets – Useful lives, residual values and
impairment
As at
the half-year ended September 30, 2021, the Group had
€8,489.9M of property, plant and equipment long-lived assets,
of which €8,321.5M 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 20 new Boeing
737-8200 aircraft delivered during the half-year period to
September 30, 2021, 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.
Revisions
to these estimates could be caused by changes to maintenance
programs, changes in utilization of the aircraft, governmental
regulations on aging 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 credit for the half-year ended
September 30, 2021 of €52.3M (tax credit September 30, 2020:
€21.8M) comprises a current tax credit of €2.9M and a
deferred tax credit of €49.4M 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.
No significant or unusual tax charges or credits arose during
the period. The effective tax rate of 52% for the half year
(September 30, 2020: 5%) is the result of the mix of profits and
losses incurred by Ryanair’s operating subsidiaries primarily
in Ireland, Malta, Poland and the UK.
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 €5.2M in the
half-year ended September 30, 2021 (September 30, 2020:
€2.1M) is the fair value of options granted in prior periods
and a conditional share grant under LTIP 2019, in the current
period, to over 80 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 half-year ended September
30, 2021, 0.7M ordinary shares were issued at strike prices between
€6.25 and €6.74 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
September 30, 2021 the Group had an operating fleet of 438 (2020:
438) Boeing 737 and 29 (2020: 28) Airbus A320 aircraft. In
September 2014, the Group agreed to purchase up to 200 (100 firm
and 100 options) Boeing 737-8200 aircraft which was subsequently
increased to 210 (135 firm and 75 options). In December 2020, the
Group increased its firm orders from 135 to 210 Boeing 737-8200
aircraft. In the half-year to September 30, 2021, the Group took
delivery of 20 of these aircraft and expects to have over 65 Boeing
737-8200s in the Group fleet ahead of Summer 2022. The remaining
aircraft are due to be delivered before the end of fiscal year
2025.
8. 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 currently comprises four key separate airlines, Buzz, 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
Half-Year Ended
Sep 30,
Sep 30,
Sep 30,
Sep 30,
Sep 30,
2021
2021
2021
2021
2021
€M
€M
€M
€M
€M
Scheduled revenue
1,241.4
-
31.9
-
1,273.3
Ancillary revenue
881.6
-
-
-
881.6
Inter-segment revenue
332.6
365.3
184.8
(882.7)
-
Segment revenue
2,455.6
365.3
216.7
(882.7)
2,154.9
Reportable segment (loss)/profit after income tax
(80.5)
29.6
3.3
-
(47.6)
Other segment information:
Depreciation
307.4
-
28.8
-
336.2
Net finance expense
42.8
-
1.9
-
44.7
Additions
553.3
-
1.9
-
555.2
Segment assets
13,729.0
95.0
245.5
-
14,069.5
Segment liabilities
8,430.0
87.0
619.6
-
9,136.6
Ryanair DAC
Malta Air
Other Airlines
Elimination
Total
Half-Year Ended
Sep 30,
Sep 30,
Sep 30,
Sep 30,
Sep 30,
2020
2020
2020
2020
2020
€M
€M
€M
€M
€M
Scheduled revenue
775.4
-
15.4
-
790.8
Ancillary revenue
385.2
-
0.2
-
385.4
Inter-segment revenue
295.4
229.7
109.1
(634.2)
-
Segment revenue
1,456.0
229.7
124.7
(634.2)
1,176.2
Reportable segment (loss) after income tax
(317.9)
(4.5)
(88.1)
-
(410.5)
Other segment information:
Depreciation
264.2
-
32.3
-
296.5
Net finance expense
13.4
-
1.9
-
15.3
Additions
85.3
-
4.0
-
89.3
Segment assets
14,100.7
220.8
362.9
-
14,684.4
Segment liabilities
8,780.3
228.4
697.0
-
9,705.7
Ryanair DAC
Malta Air
Other Airlines
Elimination
Total
Quarter Ended
Sep 30,
Sep 30,
Sep 30,
Sep 30,
Sep 30,
2021
2021
2021
2021
2021
€M
€M
€M
€M
€M
Scheduled revenue
1,055.9
-
25.5
-
1,081.4
Ancillary revenue
703.0
-
-
-
703.0
Inter-segment revenue
135.9
222.7
127.4
(486.0)
-
Segment revenue
1,894.8
222.7
152.9
(486.0)
1,784.4
Reportable segment profit after income tax
164.3
32.3
28.4
-
225.0
Other segment information:
Depreciation
187.5
-
14.4
-
201.9
Net finance expense
22.4
-
0.9
-
23.3
Additions
397.0
-
1.5
-
398.5
Segment assets
13,729.0
95.0
245.5
-
14,069.5
Segment liabilities
8,430.0
87.0
619.6
-
9,136.6
Ryanair DAC
Malta Air
Other Airlines
Elimination
Total
Quarter Ended
Sep 30,
Sep 30,
Sep 30,
Sep 30,
Sep 30,
2020
2020
2020
2020
2020
€M
€M
€M
€M
€M
Scheduled revenue
678.4
-
11.7
-
690.1
Ancillary revenue
360.9
-
-
-
360.9
Inter-segment revenue
55.5
92.0
108.4
(255.9)
-
Segment revenue
1,094.8
92.0
120.1
(255.9)
1,051.0
Reportable segment (loss) after income tax
(190.9)
(12.8)
(21.8)
-
(225.5)
Other segment information:
Depreciation
146.8
-
15.7
-
162.5
Net finance expense
4.7
-
1.2
-
5.9
Additions
(51.9)
-
2.1
-
(49.8)
Segment assets
14,100.7
220.8
362.9
-
14,684.4
Segment liabilities
8,780.3
228.4
697.0
-
9,705.7
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.
Half-Year Ended
Sep 30, 2021
Half-Year Ended
Sep 30, 2020
Quarter Ended
Sep 30, 2021
Quarter Ended
Sep 30, 2020
€M
€M
€M
€M
Italy
537.8
265.2
422.9
237.5
Spain
409.9
213.8
336.7
190.9
United Kingdom
219.2
180.7
190.4
159.9
Ireland
80.1
53.3
71.5
45.3
Other European countries
907.9
463.2
762.9
417.4
Total revenue
2,154.9
1,176.2
1,784.4
1,051.0
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 recognized 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.
Earnings
per share
Half-Year Ended
Sep 30, 2021
Half-Year Ended
Sep 30, 2020
Quarter Ended
Sep 30, 2021
Quarter Ended
Sep 30, 2020
Basic (loss)/earnings per ordinary share (€)
(0.0422)
(0.3752)
0.1994
(0.2053)
Diluted earnings per ordinary share (€)
(0.0422)
(0.3752)
0.1975
(0.2053)
Weighted average number of ordinary shares (in M’s) –
basic
1,128.4
1,094.0
1,128.6
1,098.6
Weighted average number of ordinary shares (in M’s) –
diluted
1,128.4
1,094.0
1,139.5
1,098.6
Diluted
earnings per share takes account solely of the potential future
exercise of share options granted under the Company’s share
option schemes. For the half-year ended September 30, 2021, due to
the loss-making position, share options are antidilutive in
accordance with IAS 33 and therefore are not assumed to be
converted. For the half-year ended September 20, 2021, the weighted
average number of shares includes share options assumed to be
converted of 11.0M (2020: 4.1M) and weighted issued share capital
of 0.4M (2020: 4.8M).
10.
Property,
plant and equipment
Acquisitions and disposals
During
the half-year ended September 30, 2021, net capital additions
amounted to €551M principally reflecting aircraft
pre-delivery deposits, capitalised maintenance provisions, 20
aircraft deliveries and supplier reimbursements of
€114M.
Assets held for sale
In the
quarter ended September 30, 2021 the Group entered into an
agreement to sell 10 Boeing 737-800NG aircraft for delivery in
fiscal year 2022. 2 of these aircraft were sold in September 2021.
The remaining 8 aircraft are reflected as current assets within the
Ryanair DAC airline at September 30, 2021 (Note 8).
11.
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
2021 Annual Report. 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 the risk associated with rising fuel
prices. These options set a maximum price that the Group will pay
for 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, aircraft
fuel swap contracts and EUA contracts: A comparison of the
contracted rate to the market rate for contracts providing a
similar risk profile at September 30, 2021 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 – aircraft fuel
options: The fair value of aircraft fuel 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 quarter ended September 30,
2021, there were no reclassifications of financial instruments and
no transfers between levels of the fair value hierarchy used in
measuring the fair value of financial instruments.
Financial instruments not measured at fair value
● Long-term debt: The repayments which the
Group is committed to make have been discounted at the relevant
market rates of interest applicable (including credit spreads) at
September 30, 2021 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 the quarter ended September 30, 2021, 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 Sep 30,
At Sep 30,
At Mar
31,
At Mar
31,
2021
2021
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
167.1
167.1
109.4
109.4
- Jet
fuel & carbon derivative forward contracts
45.1
45.1
-
-
-
Interest rate swaps
2.1
2.1
1.9
1.9
214.3
214.3
111.3
111.3
Current financial assets
Derivative
financial instruments:
- U.S.
dollar currency forward contracts
142.0
142.0
99.5
99.5
- GBP
currency swap
0.6
0.6
5.4
5.4
- Jet
fuel options
27.0
27.0
-
-
- Jet
fuel & carbon derivative forward contracts
171.2
171.2
-
-
-
Interest rate swaps
1.3
1.3
1.1
1.1
342.1
342.1
106.0
106.0
Trade
receivables*
39.7
18.6
Cash
and cash equivalents*
4,118.2
2,650.7
Financial
asset: cash > 3 months*
100.0
465.5
Restricted
cash*
22.7
34.1
4,622.7
342.1
3,274.9
106.0
Total financial assets
4,837.0
556.4
3,386.2
217.3
At Sep 30,
At Sep 30,
At Mar
31,
At Mar
31,
2021
2021
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
4.1
4.1
6.4
6.4
4.1
4.1
6.4
6.4
Non-current
maturities of debt:
-
Long-term debt
994.9
998.4
1,077.5
1,083.2
-
Promissory notes
96.3
96.3
-
-
-
Bonds
3,635.5
3,780.1
2,440.3
2,545.5
4,726.7
4,874.8
3,517.8
3,628.7
Trade
payables
240.7
240.7
179.9
179.9
4,971.5
5,119.6
3,704.1
3,815.0
Current financial liabilities
Derivative
financial instruments:
- Jet
fuel & carbon derivative forward contracts
-
-
19.8
19.8
- U.S.
dollar currency forward contracts
28.1
28.1
59.4
59.4
28.1
28.1
79.2
79.2
Current
maturities of debt:
-
Short-term debt
858.5
858.4
875.1
875.1
-
Bonds
-
-
850.8
852.6
858.5
858.4
1,725.9
1,727.7
Trade
payables*
788.5
336.0
Accrued
expenses*
934.8
888.2
2,609.9
886.5
3,029.3
1,806.9
Total
financial liabilities
7,581.4
6,006.1
6,733.4
5,621.9
*The fair value of each 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 June 2026.
During the half-year the Group repaid the maturing €850M
(2014) Eurobond issued at a coupon of 1.875%.
During
the half-year ended September 30, 2021, the Group issued promissory
notes to the value of €96M 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.
12.
Shareholders
equity and shareholder returns
During
the half-year ended September 30, 2021 0.7M ordinary shares were
issued at a strike price between €6.25 and €6.74 per
share following the exercise of vested options for total proceeds
of €4.4M. There were no shareholder returns during the
half-year ended September 30, 2021.
13.
Related
party transactions
The
Company’s related parties comprise its subsidiaries,
Directors and key management personnel. All transactions with
subsidiaries eliminate on consolidation and are not
disclosed.
There
were no related party transactions in the half-year ended September
30, 2021 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.
14.
Government
grants and assistance
During
the half-year to September 30, 2021, many 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
€42M (2020: €44M) and are offset against staff costs in
the Consolidated Income Statement.
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.
There
are no unfulfilled conditions attaching to government assistance at
September 30, 2021.
15.
Post
balance sheet events
In
October 2021 the Group repaid the £600M HMT and Bank of
England CCFF in full.
Ryanair
Holdings plc and Subsidiaries
Responsibility
Statement
Statement of the Directors in respect of the interim financial
report
The
Directors are responsible for preparing the half-yearly financial
report in accordance with the Transparency (Directive 2004/109/EC)
Regulations 2007 (“Transparency Directive”), and the
Transparency Rules of the Central Bank of Ireland.
In
preparing the condensed set of consolidated interim financial
statements included within the half-yearly financial report, the
Directors are required to:
●
prepare and present
the condensed set of financial statements in accordance with IAS 34
Interim Financial Reporting
as adopted by the EU, the Transparency Directive and the
Transparency Rules of the Central Bank of Ireland;
●
ensure the
condensed set of financial statements has adequate
disclosures;
●
select and apply
appropriate accounting policies; and
●
make accounting
estimates that are reasonable in the circumstances.
The
Directors are responsible for designing, implementing and
maintaining such internal controls as they determine is necessary
to enable the preparation of the condensed set of financial
statements that is free from material misstatement whether due to
fraud or error.
We
confirm that to the best of our knowledge:
(1)
the condensed set
of consolidated interim financial statements included within the
half-yearly financial report of Ryanair Holdings plc for the six
months ended September 30, 2021 (“the interim financial
information”) which comprises the condensed consolidated
interim balance sheet, the condensed consolidated interim income
statement, the condensed consolidated interim statement of
comprehensive income, the condensed consolidated interim statement
of cash flows and the condensed consolidated interim statement of
changes in shareholders’ equity and the related explanatory
notes, have been presented and prepared in accordance with IAS 34
Interim Financial
Reporting, as adopted by the EU, the Transparency Directive
and Transparency Rules of the Central Bank of Ireland.
(2)
The interim
financial information presented, as required by the Transparency
Directive, includes:
a.
an indication of
important events that have occurred during the first 6 months of
the financial year, and their impact on the condensed set of
consolidated interim financial statements;
b.
a description of
the principal risks and uncertainties for the remaining 6 months of
the financial year
c.
related
parties’ transactions that have taken place in the first 6
months of the current financial year and that have materially
affected the financial position or the performance of the
enterprise during that period; and
d.
any changes in the
related parties’ transactions described in the last annual
report that could have a material effect on the financial position
or performance of the enterprise in the first 6 months of the
current financial year.
On
behalf of the Board
Stan
McCarthy
Michael
O’Leary
Chairman
Chief Executive
October
29, 2021
Independent
review report to Ryanair Holdings plc and Subsidiaries
Introduction
We have
been engaged by the Company to review the condensed set of
consolidated financial statements in the half-yearly financial
report for the six months ended September 30, 2021 which comprises
the condensed consolidated interim balance sheet, the condensed
consolidated interim income statement, the condensed consolidated
interim statement of comprehensive income, the condensed
consolidated interim statement of cash flows, and the condensed
consolidated interim statement of changes in shareholders’
equity and the related explanatory notes. Our review was conducted
having regard to the Financial Reporting Council’s
International Standard on Review Engagements (UK and Ireland) 2410,
‘Review of Interim Financial
Information Performed by the Independent Auditor of the
Entity’.
Conclusion
Based
on our review, nothing has come to our attention that causes us to
believe that the condensed set of consolidated financial statements
in the half-yearly financial report for the six months ended
September 30, 2021 is not prepared, in all material respects in
accordance with IAS 34 ‘Interim Financial Reporting’ as
adopted by the EU, the Transparency (Directive 2004/109/EC)
Regulations 2007 (“Transparency Directive”), and the
Transparency Rules of the Central Bank of Ireland.
Directors’
responsibilities
The
half-yearly financial report is the responsibility of, and has been
approved by, the Directors. The Directors are responsible for
preparing the half-yearly financial report in accordance with the
Transparency Directive and the Transparency Rules of the Central
Bank of Ireland. As disclosed in note 1, the annual financial
statements of the Group are prepared in accordance with
International Financial Reporting Standards as adopted by the EU.
The Directors are responsible for ensuring that the condensed set
of consolidated financial statements included in this half-yearly
financial report has been prepared in accordance with IAS 34
Interim Financial Reporting as adopted by the EU.
Our
responsibility
Our
responsibility is to express to the Company a conclusion on the
condensed set of consolidated financial statements in the
half-yearly financial report based on our review.
Scope
of review
We
conducted our review having regard to the Financial Reporting
Council’s International Standard on Review Engagements (UK
and Ireland) 2410 Review of
Interim Financial Information Performed by the Independent Auditor
of the Entity. A review of interim financial information
consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other
review procedures. A review is substantially less in scope than an
audit conducted in accordance with International Standards on
Auditing (Ireland) and consequently does not enable us to obtain
assurance that we would become aware of all significant matters
that might be identified in an audit. Accordingly, we do not
express an audit opinion.
We read
the other information contained in the half-yearly financial report
to identify material inconsistencies with the information in the
condensed set of consolidated financial statements and to identify
any information that is apparently materially incorrect based on,
or materially inconsistent with, the knowledge acquired by us in
the course of performing the review. If we become aware of any
apparent material misstatements or inconsistencies, we consider the
implications for our report.
The
purpose of our review work and to whom we owe our
responsibilities
This
report is made solely to the Company in accordance with the terms
of our engagement to assist the Company in meeting the requirements
of the Transparency Directive and the Transparency Rules of the
Central Bank of Ireland. Our review has been undertaken so that we
might state to the Company those matters we are required to state
to it in this report and for no other purpose. To the fullest
extent permitted by law, we do not accept or assume responsibility
to anyone other than the Company for our review work, for this
report, or for the conclusions we have reached.
Sean
O’Keefe
For and on behalf
of
KPMG
October 29,
2021
Chartered Accountants
1
Stokes Place
St
Stephen’s Green Dublin 2
Ireland
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.