Indicate
by check mark whether the registrant files or will file
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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
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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 Q1 LOSS OF €273M AS EASTER TRAVEL
CANCELLED
VACCINE ROLLOUTS & EU DIGITAL COVID CERTS
DRIVE STRONG BOOKING RECOVERY INTO PEAK SUMMER 2021
Ryanair Holdings plc today (26 July) reported a Q1 loss of
€273m, compared to a PY Q1 loss of €185m. Features of
this Q1 performance included:
● Q1 traffic rebounded from
0.5m to 8.1m as capacity recovered in May &
June.
● 1st B737-8200
"Gamechanger" delivered in June (12 for peak
S.21).
● Strong June cash balance
of €4.06bn (up from €3.15bn at 31
Mar.).
● €1.2bn 5-year
unsecured bond issued in May at record low 0.875%
coupon.
● Net debt fell from
€2.28bn at 31 Mar. to €1.66bn at 30 June (€850m
bond repaid in June).
● 379 new routes & 10
new bases announced for 2021.
● Customer Advisory Panel
appointed - 1st meeting
in Sept.
Q1 - Group
30 Jun. 2020
30 Jun. 2021
Change
Customers
0.5m
8.1m
+7.6m
Load
Factor
61%
73%
+12pts
Revenue
€125m
€371m
+196%
Op.
Costs
€313m
€675m
+116%
Net
Loss
(€185m)
(€273m)
-47%
Ryanair Holdings Group CEO, Michael O'Leary, said:
"COVID-19:
Covid-19 continued to wreak havoc on our business during Q1 with
most Easter flights cancelled and a slower than expected easing of
EU Govt. travel restrictions into May and June. Significant
uncertainty around travel green lists (particularly in the UK) and
extreme Govt. caution in Ireland meant that Q1 bookings were
close-in and at low fares. We kept aircraft and crews current
throughout the quarter and recruited additional cabin crew to
enable us recover quickly in Q2 as Covid restrictions ease.
The 1st July
rollout of EU Digital Covid Certificates ("DCC") and the scrapping
of quarantine for vaccinated arrivals to the UK from mid-July has
seen a surge in bookings over recent weeks. Pricing remains
below pre Covid-19 levels and there will continue to be great value
for Ryanair guests travelling this summer as we focus on recovering
traffic, jobs and tourism across our European network. Based
on current (close-in) bookings, we expect traffic to rise from over
5m in June to almost 9m in July, and over 10m in Aug., as long as
there are no further Covid setbacks in Europe. We will
continue our load active/yield passive strategy as we recover load
factors over the course of FY22.
The Covid-19 crisis has triggered the collapse of many European
airlines including Flybe, Norwegian, Germanwings, Level and 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,
AirFrance/KLM, LOT, Lufthansa, SAS, TAP and others) will distort EU
competition and prop up high cost, inefficient, flag carriers for
many years. We expect intra-European capacity to be
materially lower for the foreseeable future. This will create
growth opportunities for Ryanair to extend airport incentives, as
the Group takes delivery of 210 new Boeing 737 "Gamechanger"
aircraft. We are encouraged by the high rate of vaccinations
across Europe. If, as is presently predicted, most of
Europe's adult population is fully vaccinated by Sept., then we
believe that we can look forward to a strong recovery in air travel
for the second half of the fiscal year and well into S.22 - as is
presently the case in domestic US air travel.
THE ENVIRONMENT & CUSTOMER SERVICE:
Ryanair has repeatedly shown we can grow traffic while reducing our
impact on the environment. Every passenger that switches to
Ryanair from Europe's legacy airlines reduces their CO₂
emissions by almost 50% per flight. Over the next 5-years our
traffic will grow to 200m p.a. This will be achieved on a
fleet that balances the demand for low fares with the need for
sustainable flying. Our new
B737-8200 "Gamechanger" aircraft
(a $22bn+ investment) offers 4% more seats, but delivers 16% lower
fuel burn and 40% lower noise emissions, helps to meaningfully
lower Ryanair's CO₂ and noise footprint over the next
decade.
We continue to work actively with the EU, fuel suppliers and
aircraft manufacturers to incentivise sustainable aviation fuel
(SAF) use. We are working with A4E and the EU Commission to
accelerate reform to the Single European Sky, to minimise ATC
delays and lower fuel consumption and CO₂ emissions.
Last year Ryanair received an industry leading "B-" climate
protection rating from CDP[1],
and we are working to improve this to an "A" rating over the next 2
years. In April, Ryanair 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 (well ahead of the 5%
recently mandated by the EU Fit for 55 Proposals). Earlier
this month we launched a new carbon calculator enabling customers
to (voluntarily) offset their carbon footprint on every Ryanair
flight that they book. These initiatives will help Ryanair
achieve our target of lowering CO₂ per passenger/km by 10% to
just 60 grams by 2030.
In July, Ryanair announced a 7 member Customer Advisory
Panel. Following over 10,000 applications from across 16
countries, the final panel represents a diverse cross-section of
Ryanair customers (with members from Germany, Ireland, Italy,
Poland, Spain and the UK). We will welcome this Panel to
Dublin in Sept. for our first Customer Advisory meeting, with
future meetings to take place in other major European
cities. The advice and input from the Panel will help
shape Ryanair's continuing customer improvements programme,
re-enforcing our commitment to delivering the lowest fares, on-time
flights and a great customer experience as the Group returns to
strong post Covid growth.
Q1 FY22 BUSINESS REVIEW:
Revenue & Costs
Q1 scheduled revenue increased 91% to €192m due to a rise in
traffic from 0.5m to 8.1m (at a 73% load factor). While traffic
recovered significantly (compared to PY Q1), the cancellation of
Easter traffic and the delayed relaxation of Govt. travel
restrictions across the EU into May and June required significant
price stimulation. Ancillary revenue performed well,
generating approx. €22 per passenger, as more guests choose
priority boarding and reserved seating. As a result,
total revenue increased by almost 200% to over €370m in
Q1. A sevenfold increase in sectors saw operating costs
increase 116% to €675m, driven primarily by variable costs
such as fuel, airport & handling and route charges. The
Group's fuel requirements are just under 60% hedged for FY22 at
$565 per metric tonne and approx. 35% hedged for FY23 at
$600. Carbon credits are fully hedged for FY22 and approx.
35% hedged for FY23 at under €24 per EUA (compared to forward
rates of over €50).
During Q1 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 previously announced
deals (with Billund, Riga, Stockholm, Zadar & Zagreb) and long
term extensions of low-cost growth deals in London Stansted (to
2028), Milan Bergamo (to 2028) and Brussels Charleroi (to 2030),
the Group has doubled its capacity in Rome (Fiumicino), added new
routes to Helsinki and will launch new bases in Turin (Italy) and
Agadir (Morocco) this winter.
In June Ryanair took delivery of our first 3 B737-8200
"Gamechanger" aircraft from our 210 orderbook. The
Gamechangers have 4% more seats, 16% lower fuel burn and 40% lower
noise emissions and will, we believe, further widen the cost gap
between Ryanair and all other European airlines for the next
decade. While it is early days (and load factors have not yet
recovered to pre Covid levels) we are very pleased with the
operational performance and lower fuel burn recorded on these
aircraft. The feedback from our guests is resoundingly
positive as they enjoy the extra leg room and 40% less noise.
We hope to increase our fleet of Gamechangers to over 60 in advance
of S.22 and these new aircraft will drive our traffic growth to
200m p.a. by FY26.
Balance Sheet & Liquidity
Ryanair's balance sheet is one of the strongest in the industry
with a BBB credit rating (S&P and Fitch), €4.06bn cash
and almost 90% of our B737 fleet unencumbered at quarter end. In
May Ryanair issued a €1.2bn 5-year, unsecured, bond at a
record low coupon of 0.875%. In June the Group repaid its
maturing €850m (2014) 1.875% bond. Strong operating
cashflows and supplier reimbursements drove a €0.62bn
reduction in net debt to €1.66bn at 30 June (31 March:
€2.28bn). This balance sheet strength enables the Group
to capitalise on the many growth opportunities that will be
available in Europe in the post Covid-19 recovery.
OUTLOOK:
FY22 continues to be challenging, with Covid-19 travel restrictions
prolonging uncertainty. Following the 1st July
rollout of EU DCC's (and the relaxation of the UK's quarantine
rules) for fully vaccinated persons, our Group has seen Q2 bookings
recover strongly (albeit at low fares). With the booking
curve remaining very close-in and fares well below pre Covid-19
levels, visibility for the remainder of FY22 is close to
zero. It therefore remains impossible to provide meaningful
FY22 guidance at this time. We believe that FY22 traffic has
improved to a range of 90m to 100m (previously guided at the lower
end of an 80m to 120m passenger range) and (cautiously) expect that
the likely outcome for FY22 is somewhere between a small loss and
breakeven. This is dependent on the continued rollout of
vaccines this summer, and no adverse Covid variant
developments.
As we look beyond the Covid-19 recovery, and the successful
completion of vaccination rollouts, the Ryanair Group expects to
have a materially lower cost base, a very strong balance sheet and
industry leading traffic recovery. Our new B737 "Gamechanger"
aircraft will reduce fleet costs and unit costs (thanks to its
attractive pricing, higher seat density and 16% lower fuel burn)
for the next decade. They will enhance revenue opportunities
with 4% more seats, enabling the Group to fund lower fares and
capitalise on the many growth opportunities that are now available
across Europe, especially where competitor airlines have
substantially cut capacity or failed. We are seeing a strong
rebound of pent up travel demand into Aug. & Sept. and we
expect this to continue into the second half of FY22, with pre
Covid-19 growth planned to resume strongly in summer
2022."
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
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.
Ryanair Holdings plc and Subsidiaries
Condensed Consolidated Interim Balance Sheet as at
June 30, 2021 (unaudited)
At Jun 30,
At Mar 31,
2021
2021
Note
€M
€M
Non-current assets
Property,
plant and equipment
10
8,397.7
8,361.1
Right-of-use
asset
174.3
188.2
Intangible
assets
146.4
146.4
Derivative
financial instruments
11
106.9
111.3
Deferred
tax
19.1
14.0
Other
assets
48.7
48.7
Total non-current assets
8,893.1
8,869.7
Current assets
Inventories
3.8
3.6
Other
assets
256.7
179.8
Trade
receivables
22.3
18.6
Derivative
financial instruments
11
164.0
106.0
Restricted
cash
34.1
34.1
Financial
assets: cash > 3 months
470.3
465.5
Cash
and cash equivalents
3,551.9
2,650.7
Total current assets
4,503.1
3,458.3
Total assets
13,396.2
12,328.0
Current liabilities
Provisions
-
10.3
Trade
payables
565.8
336.0
Accrued
expenses and other liabilities
2,062.3
1,274.9
Current
lease liability
52.0
52.5
Current
maturities of debt
863.1
1,725.9
Derivative
financial instruments
11
43.1
79.2
Current
tax
52.0
48.1
Total current liabilities
3,638.3
3,526.9
Non-current liabilities
Provisions
58.8
47.4
Trade
payables
188.1
179.9
Derivative
financial instruments
11
3.7
6.4
Deferred
income tax liability
235.5
272.4
Non-current
lease liability
115.8
130.6
Non-current
maturities of debt
4,686.8
3,517.8
Total non-current liabilities
5,288.7
4,154.5
Shareholders' equity
Issued
share capital
12
6.7
6.7
Share
premium account
12
1,164.8
1,161.6
Other
undenominated capital
12
3.5
3.5
Retained
earnings
12
2,959.7
3,232.3
Other
reserves
334.5
242.5
Shareholders' equity
4,469.2
4,646.6
Total liabilities and shareholders' equity
13,396.2
12,328.0
Ryanair Holdings plc and Subsidiaries
Condensed Consolidated Interim Income Statement for Quarter Ended
June 30, 2021 (unaudited)
IFRS
Quarter
Ended
June 30,
2021
IFRS
Quarter
Ended
June 30,
2020
Change
Note
%*
€M
€M
Operating revenues
Scheduled revenues
191.9
100.7
Ancillary revenues
178.6
24.5
Total operating revenues
196%
370.5
125.2
Operating expenses
Depreciation
134.3
134.0
Fuel and oil
156.6
8.9
Staff costs
111.0
68.5
Airport and handling charges
87.1
18.1
Maintenance, materials and repairs
61.8
36.2
Marketing, distribution and other
71.9
42.4
Route charges
52.3
2.3
Aircraft rentals
0.0
2.4
Total operating expenses
(116%)
675.0
312.8
Operating (loss)
(62%)
(304.5)
(187.6)
Other income/(expenses)
Net finance expense
(21.4)
(9.4)
Foreign exchange / hedge Ineffectiveness
1.4
(13.0)
Total other income/(expenses)
11%
(20.0)
(22.4)
(Loss) before tax
(55%)
(324.5)
(210.0)
Tax credit on (loss)
4
51.9
24.9
(Loss) for the quarter - attributable to equity holders of
parent
(47%)
(272.6)
(185.1)
(Loss) per ordinary share (€)
9
(0.2416)
(0.1699)
Basic
9
(0.2416)
(0.1699)
Diluted
Weighted ave. no. of ord. shares (in Ms)
9
1,128.3
1,089.4
Basic
9
1,128.3
1,089.4
Diluted
*"+"
is favourable and "-" is adverse year-on-year.
Ryanair Holdings plc and Subsidiaries
Condensed Consolidated Interim Statement of Comprehensive Income
for Quarter Ended June 30, 2021 (unaudited)
Quarter
Quarter
Ended
Ended
June 30,
June 30,
2021
2020
€M
€M
(Loss) for the quarter
(272.6)
(185.1)
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
89.6
(69.9)
Other comprehensive profit/(loss) for the quarter, net of income
tax credit/charge
89.6
(69.9)
Total comprehensive (loss) for the quarter - attributable to equity
holders of parent
(183.0)
(255.0)
Ryanair Holdings plc and Subsidiaries
Condensed Consolidated Interim Statement of Cash Flows for Quarter
Ended June 30, 2021 (unaudited)
Quarter
Quarter
Ended
Ended
June 30,
June 30,
2021
2020
Restated*
Note
€M
€M
Operating activities
(Loss) after tax
(272.6)
(185.1)
Adjustments to reconcile profit after tax to net cash provided by
operating activities
Tax credit on loss on ordinary activities
(51.9)
(24.9)
Hedge ineffectiveness/foreign exchange
9.1
(296.6)
Increase/(decrease) in net finance expense
0.9
(3.3)
Depreciation
134.3
134.0
Share based payments
2.4
1.0
(Increase)/decrease in inventories
(0.2)
0.3
(Increase)/decrease in trade receivables
(3.7)
30.1
(Increase)/decrease in other assets
(77.2)
89.7
Increase/(decrease) in trade payables
1
63.1
(134.0)
Increase/(decrease) in accrued expenses
788.8
(67.3)
Increase in provisions
1.0
6.5
Income tax refunded/(paid)
0.2
(0.7)
Net cash provided by/(used in) operating activities
594.2
(450.3)
Investing activities
Capital expenditure - purchase of property, plant and
equipment
10
(82.0)
(34.3)
Supplier reimbursements
10
113.9
-
Decrease in restricted cash
-
0.3
(Increase)/decrease in financial assets: cash > 3
months
(4.8)
112.1
Net cash provided by/(used in) investing activities
27.1
78.1
Financing activities
Net proceeds from shares issued
3.2
5.8
Finance raised
1,192.0
690.0
Repayments of long term borrowings
(896.3)
(68.0)
Lease liabilities paid
(14.6)
(20.5)
Net cash provided by/(used in) financing activities
284.3
607.3
Increase in cash and cash equivalents
905.6
235.1
Net foreign exchange differences
(4.4)
5.3
Cash and cash equivalents at beginning of the year
2,650.7
2,566.4
Cash and cash equivalents at end of the quarter
3,551.9
2,806.8
*Includes
reclassification between trade payables and capital expenditure.
See note 1 for further detail.
Ryanair Holdings plc and Subsidiaries
Condensed Consolidated Interim Statement of Changes in
Shareholders' Equity for Quarter Ended June 30, 2021
(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 March 31, 2020
1,089.2
6.5
738.5
3.5
4,245.0
(111.3)
32.3
4,914.5
Adjustment on initial application of IFRS 16
-
-
-
-
-
-
-
-
Adj. 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 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
Repurchase of ordinary equity shares
-
-
-
-
-
-
-
-
Other
-
-
-
-
-
-
-
-
Cancellation of repurchased ordinary shares
-
-
-
-
-
-
-
-
Transfer of exercised and 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 quarter
-
-
-
-
(272.6)
-
-
(272.6)
Other comprehensive income
-
-
-
-
-
-
-
-
Net movements in cash flow reserve
-
-
-
-
-
89.6
-
89.6
Total other comprehensive income
-
-
-
-
-
89.6
-
89.6
Total comprehensive income
-
-
-
-
(272.6)
89.6
-
(183.0)
Transactions with owners of the
-
-
-
-
-
-
-
-
Company recognised directly in equity
Issue of ordinary equity shares
0.5
-
3.2
-
-
-
-
3.2
Share-based payments
-
-
-
-
-
-
2.4
2.4
Transfer of exercised and expired share based awards
-
-
-
-
-
-
-
-
Balance at June 30, 2021
1,128.6
6.7
1,164.8
3.5
2,959.7
300.9
33.6
4,469.2
Ryanair Holdings plc and Subsidiaries
MD&A Quarter Ended June 30, 2021
Introduction
The Ryanair Group's fleet was effectively grounded due to European
Governments travel restrictions/ lockdowns during the prior year
comparative (quarter ended June 30, 2020). Sectors (up
sevenfold) and traffic (+7.6M) are therefore significantly higher
in the quarter ended June 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 91% to €192M due to a 7.6M increase in traffic,
from 0.5M to 8.1M. While traffic increased significantly, the
cancellation of most Easter flights and the delayed relaxation of
Government travel restrictions across the EU and the UK into May
and June meant that fares required significant price
stimulation.
Ancillary revenues:
Ancillary revenues increased to €179M due to a 7.6M rebound in traffic and a solid
performance in priority boarding and reserved
seating.
Total revenues:
As a result of the above, total revenues
increased 196% to
€371M.
Operating Expenses:
Depreciation:
Depreciation was flat at €134M primarily due to the sale of 7 older B737
aircraft and 11 B737 lease handbacks over the past year, offset by
the delivery of 3 B737-8200 ("Gamechanger") aircraft in June and
increased amortisation as schedules and cycles
increased.
Fuel and oil:
Fuel and oil increased by €148M to
€157M due to a
sevenfold increase in sectors flown.
Staff
costs:
Staff costs increased by €43M to
€111M due to
significantly higher sectors.
Airport and handling charges:
Airport and handling charges rose by €69M to
€87M due to
increased sectors and passengers, offset by reduced
charges.
Maintenance, materials and repairs:
Maintenance, materials and repairs increased
by €26M to
€62M due to higher
aircraft utilisation.
Marketing, distribution and other:
Marketing, distribution and other increased
by €30M to
€72M due to higher
activity and reduced discretionary spending across the
Group.
Route
charges:
Route charges increased by €50M to €52M due to significantly higher
sectors.
Aircraft rentals:
Aircraft rentals dropped to zero due to no longer having B737 aircraft on
lease.
Other
expense:
The absence of hedge ineffectiveness in the quarter was offset by
a €12M increase in finance expenses due to higher
gross debt and negative average interest rates on euro
deposits.
Balance sheet
Gross cash increased by €906M to
€4,056M at June 30,
2021.
Gross debt increased by €291M to
€5,718M, primarily due to
a €1,200M Eurobond issuance in May 2021 offset by a
€850M (2014) Eurobond maturity repayment in June 2021 in
addition to €61M secured debt and lease liability payments in
the quarter.
Net debt was €1,661M at
June 30, 2021. This is a €615M reduction from €2,277M
at March 31, 2021.
Shareholders'
equity:
Shareholders' equity decreased by €177M to
€4,469M in the
quarter primarily due to a €273M net
loss.
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 quarter ended June 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 2020 Annual Report, have been prepared to
include information equivalent to that required for condensed
interim financial statements in accordance with International
Accounting Standard No. 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
year ended March 31, 2020, are available
at http://investor.ryanair.com/.
The June 30, 2021 figures and the June 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,
2020, 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 quarter ended June 30, 2021 on July 23,
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 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 Interim financial statements:
●
Amendments
to IFRS 4 Insurance Contracts - deferral of IFRS 19 (effective for
fiscal periods beginning 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 for fiscal periods beginning
on or after January 1, 2021).
●
Amendment
to IFRS 16 Leases - Covid-19 Related Rent Concessions Beyond June
30, 2021 (effective for fiscal periods beginning on or after April
1, 2021).*
The adoption of these new or amended standards as listed
above did not have a material impact on the Group's financial
position or results from operations in the quarter ended June 30,
2021.
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 (effective for fiscal
periods beginning on or after January 1, 2022).
●
Onerous
Contracts - Cost of Fulfilling a Contract (Amendments to IAS 37)
(effective for periods beginning on or after January 1,
2022).
●
Property,
Plant and Equipment: Proceeds before Intended Use (Amendments to
IAS 16) (effective for periods beginning on or after January 1,
2022).
●
Reference
to the Conceptual Framework (Amendments to IFRS 3) (effective for
periods beginning 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 for fiscal
periods beginning on or after January 1, 2023).*
●
Amendments
to IAS 8 Accounting policies, Changes in Accounting Estimates and
Errors: Definition of Accounting Estimates (effective for fiscal
periods beginning on or after January 1, 2023).*
●
Amendments
to IAS 1 Presentation of Financial Statements and IFRS Practice
Statement 2: Disclosure of Accounting policies (effective for
fiscal periods beginning 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 (effective for fiscal periods
beginning on or after January 1, 2023).*
●
IFRS
17 Insurance Contracts (effective for fiscal periods beginning on
or after January 1, 2023).*
* These standards or amendments to standards are not as of yet EU
endorsed.
Statement of Cash Flows restatement
Operating cash inflows and investing cash outflows for the quarter
ended June 30, 2020 have been reclassified. They both have been
reduced by approximately €103M to address accrued supplier
payables which had previously been presented as a capital
expenditure cash outflow in investing activities and as a movement
in working capital in operating activities. As no actual cash flows
arose and the payable is not working capital related, both line
items required adjustments. There is no impact on the Group's net
cash flows, consolidated balance sheet, consolidated income and
basic and diluted earnings per share for the quarter
ended.
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 interim financial
statements, the significant judgements and key sources of
estimation uncertainty were the same as those that applied in the
most recent published consolidated financial
statements.
Derivative financial instruments
The Group uses various derivative financial instruments to manage
its exposure to market risks, including the risks relating to
fluctuations in commodity prices and currency exchange rates.
Ryanair uses forward contracts for the purchase of its jet fuel
requirements to reduce its exposure to commodity price risk. It
also uses foreign currency forward contracts to reduce its exposure
to risks related to foreign currencies, principally the U.S. dollar
exposure associated with the purchase of new Boeing 737-8200
aircraft and the U.S. dollar exposure associated with the purchase
of jet fuel.
The Group recognises all derivative instruments as either assets or
liabilities in its consolidated balance sheet and measures them at
fair value.
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 effective tax rate in respect of
operations for the quarter ended June 30, 2021 was a credit of
16.0% (June 30, 2020: 11.9%). The Group's accounting tax
credit for the quarter ended June 30, 2021 of approximately
€52M (June 30, 2020: €25M); comprising of a deferred
tax credit of €56M primarily relating to net operating losses
and the temporary differences for property, plant and equipment,
offset by a Group current tax charge of approximately
€4M.
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 €2.4M in the
quarter ended June 30, 2021 (June 30, 2020: €1.0M) is the
fair value of share options granted in prior periods and a
conditional share grant under LTIP 2019, in the current quarter, to
over 80 managers across the Group (the Executive and Non-Executive
Directors were not included in this LTIP 2019 grant). The charge is
recognised within the income statement in accordance with employee
services rendered. During the quarter ended June 30, 2021, 0.5M
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
As of June 30, 2021, the Ryanair Group had a fleet of 422 owned
Boeing 737s, including 3 "Gamechanger" B737-8200s. In addition, the
Group had 29 leased Airbus A320 aircraft. In September 2014, the
Group agreed to purchase up to 200 (100 firm and 100 options)
Boeing 737-8200 aircraft, 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 and in June 2021,
the Group took delivery of the first of these aircraft. The
remaining aircraft are due to deliver 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 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.
Ryanair DAC and Malta Air are reportable segments for financial
reporting purposes. Buzz and Lauda do not exceed the quantitative
thresholds for reporting purposes and accordingly have been
presented on an aggregate basis in the table below.
Reportable segment information is presented as
follows:
Ryanair DAC
Malta Air
Other Airlines
Elimination
Total
Quarter Ended
June 30,
June 30,
June 30,
June 30,
June 30,
2021
2021
2021
2021
2021
€M
€M
€M
€M
€M
External revenue
364.1
-
6.4
-
370.5
Inter-segment revenue
196.7
142.6
57.4
(396.7)
-
Segment revenue
560.8
142.6
63.8
(396.7)
370.5
Segment (loss)
(244.8)
(2.7)
(25.1)
-
(272.6)
Other segment information:
Depreciation
119.9
-
14.4
-
134.3
Additions
269.5
-
0.5
-
270.0
Ryanair DAC
Malta Air
Other Airlines
Elimination
Total
June 30,
June 30,
June 30,
June 30,
June 30,
2021
2021
2021
2021
2021
€M
€M
€M
€M
€M
Segment assets
12,961.8
91.3
343.1
-
13,396.2
Segment liabilities
8,069.7
115.6
741.7
-
8,927.0
Ryanair DAC
Malta Air
Other Airlines
Elimination
Total
June 30,
June 30
June 30,
June 30,
June 30,
2020
2020
2020
2020
2020
€M
€M
€M
€M
€M
External revenue
121.3
-
3.9
-
125.2
Inter-segment revenue
239.9
137.7
0.7
(378.3)
-
Segment
revenue
361.2
137.7
4.6
(378.3)
125.2
Segment (loss)/profit
(127.0)
8.3
(66.4)
-
(185.1)
Other segment information:
Depreciation
117.4
-
16.6
-
134.0
Additions
137.4
-
-
-
137.4
Ryanair DAC
Malta Air
Other Airlines
Elimination
Total
June 30,
June 30
June 30,
June 30,
June 30,
2020
2020
2020
2020
2020
€M
€M
€M
€M
€M
Segment assets
14,048.7
164.3
380.8
-
14,593.8
Segment liabilities
9,035.2
158.6
733.7
-
9,927.5
9.
Loss per share
Quarter
Ended
Quarter
Ended
June 30,
June 30,
2021
2020
Basic (Loss) per ordinary share (€)
(0.2416)
(0.1699)
Diluted (Loss) per ordinary share (€)
(0.2416)
(0.1699)
Weighted average number of ordinary shares (in M's) -
basic
1,128.3
1,089.4
Weighted average number of ordinary shares (in M's) -
diluted
1,128.3
1,089.4
10. Property,
plant and equipment
Acquisitions and disposals
Net capital additions for the quarter ended June 30, 2021 amounted
to €157M, principally reflecting aircraft pre-delivery
deposits, and 3 aircraft deliveries offset by supplier
reimbursements of €114M.
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
2020 Annual Report. There have been no changes in our risk
management policies in the period.
Fair value hierarchy
Financial instruments measured at fair value in the balance sheet
are categorised by the type of valuation method used. The different
valuation levels are defined as follows:
●
Level
1: quoted prices (unadjusted) in active markets for identical
assets or liabilities that the Group can access at the measurement
date.
●
Level
2: inputs other than quoted prices included within Level 1 that are
observable for that asset or liability, either directly or
indirectly.
●
Level
3: significant unobservable inputs for the asset or
liability.
Fair value estimation
Fair value is the price that would be received to sell an asset, or
paid to transfer a liability, in an orderly transaction between
market participants at the measurement date. The following methods
and assumptions were used to estimate the fair value of each
material class of the Group's financial instruments:
Financial instruments measured at fair value
●
Derivatives - interest rate
swaps: Discounted cash
flow analyses have been used to determine the fair value, taking
into account current market inputs and rates. (Level
2)
●
Derivatives - currency
forwards, aircraft fuel contracts and EUA
contracts: A comparison of
the contracted rate to the market rate for contracts providing a
similar risk profile at June 30, 2021 has been used to establish
fair value. (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 June
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
June 30, 2021 to arrive at a fair value representing the amount
payable to a third party to assume the
obligations.
While
there have been significant changes in business and economic
circumstances during the quarter ended June 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 financial
balance sheet, are as follows:
11. Financial
instruments and financial risk management
(continued)
At June 30,
At June 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
96.3
96.3
109.4
109.4
- Jet fuel contracts
9.2
9.2
-
-
- Interest rate swaps
1.4
1.4
1.9
1.9
106.9
106.9
111.3
111.3
Current financial assets
Derivative financial instruments:
- U.S. dollar currency forward contracts
76.9
76.9
99.5
99.5
- GBP currency swap
1.4
1.4
5.4
5.4
- Jet fuel contracts
84.8
84.8
-
-
- Interest rate swaps
0.9
0.9
1.1
1.1
164.0
164.0
106.0
106.0
Trade receivables*
22.3
-
18.6
-
Cash and cash equivalents*
3,551.9
-
2,650.7
-
Financial asset: cash > 3 months*
470.3
-
465.5
-
Restricted cash*
34.1
-
34.1
-
4,242.6
164.0
3,274.9
106.0
Total financial assets
4,349.5
270.9
3,386.2
217.3
At June 30,
At June 30,
At Mar 31,
At Mar 31,
2021
2021
2021
2021
Carrying
Fair
Carrying
Fair
Non-current financial liabilities
Amount
Value
Amount
Value
Derivative financial instruments:
€M
€M
€M
€M
- U.S. dollar currency forward contracts
3.7
3.7
6.4
6.4
Long-term debt
1,053.1
1,061.3
1,077.5
1,083.2
Bonds
3,633.7
3,764.1
2,440.3
2,545.5
Trade payables
188.1
188.1
179.9
179.9
4,878.6
5,017.2
3,704.1
3,815.0
Current financial liabilities
Derivative financial instruments:
- Jet fuel & carbon derivative contracts
19.8
19.8
- U.S. dollar currency forward contracts
43.1
43.1
59.4
59.4
43.1
43.1
79.2
79.2
Current maturities of debt
863.1
863.1
875.1
875.1
Bonds
-
-
850.8
852.6
Trade payables*
565.8
-
336.0
-
Accrued expenses*
937.5
-
887.3
-
2,409.5
906.2
3,028.4
1,806.9
Total financial liabilities
7,288.1
5,923.4
6,732.5
5,621.9
*The fair value of these financial instruments approximate their
carrying values due to the short-term nature of the
instruments.
11. Financial
instruments and financial risk management
(continued)
The
Group issued senior, unsecured bonds with a fair value of
€1,200M in May 2021. The bond has a coupon of 0.875% and a
maturity date of June 2026. During the quarter the Group repaid the
maturing €850M (2014) Eurobond issued at a coupon of
1.875%.
12. Shareholders
equity and shareholder returns
During the quarter ended June 30, 2021, 0.5M ordinary shares were
issued at strike prices between €6.25 and €6.74 per
share following the exercise of vested share options. There were no
shareholder returns during the quarter ended June 30, 2021 or in
the prior year comparative.
13. Related
party transactions
The
Company's related parties comprise its subsidiaries, Directors and
senior key management personnel. All transactions with
subsidiaries eliminate on consolidation and are not
disclosed.
There
were no related party transactions in the quarter ended June 30,
2021 that materially affected the financial position or the
performance of the Company during that period and there were no
changes in the related party transactions described in the 2020
Annual Report that could have a material effect on the financial
position or performance of the Company in the same
period.
14. Government
grants and assistance
During the quarter ended June 30, 2021, many European countries in
which the Ryanair Group operates made available payroll support
schemes. The 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 €22M 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 subsequently 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 June 30, 2021.
15. Post balance sheet
events
There were no significant post balance sheet events.
16. Going
concern
The
Board are satisfied that it remains appropriate to adopt the going
concern concept. In arriving at this decision, the Board
considered, among other things:
1.
The Ryanair Group's liquidity with over €4bn cash at June 30,
2021, a €0.62bn reduction in net debt in the quarter and the
Group's continued focus on cash management;
2.
The Group's solid BBB credit ratings (from both S&P and Fitch
Ratings);
3.
The Group's strong balance sheet with almost 90% of its B737 fleet
unencumbered;
4.
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%;
5.
Ongoing cost reductions across the Group;
6.
The widespread rollout of Covid-19 vaccines in Europe, with it
reported that the vast majority of the European adult population
will be vaccinated before the end of September 2021;
7.
Increased bookings; and
8.
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 from mid-July, and the (expected)
further easing of European Governments travel
restrictions/lockdowns over the coming months.
[1] CDP
- Carbon Disclosure Project is an independent, non-profit, global
environmental reporting organisation.
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.