RYANAIR FULL YEAR PROFIT
RISES 34% TO €1.92BN
TRAFFIC GROWS 9%TO 184M
DESPITE BOEING DELAYS
€700M SHARE BUYBACK
ANNOUNCED
Ryanair Holdings plc today (20 May)
reported full-year PAT growth of 34% to €1.92bn, as traffic grew 9%
to 184m passengers (23% more than pre-Covid). The Group's
industry leading cost base and increased revenues helped to offset
a significantly higher fuel bill as hedged oil prices rose from
$65bbl in FY23 to $89bbl in FY24.
|
Mar. 2023
|
Mar. 2024
|
Change
|
Customers
|
168.6m
|
183.7m
|
+9%
|
Load Factor
|
93%
|
94%
|
+1pt
|
Revenue
|
€10.78bn
|
€13.44bn
|
+25%
|
Op. Costs
|
€9.20bn*
|
€11.38bn
|
+24%
|
PAT
|
€1.43bn*
|
€1.92bn
|
+34%
|
FY24 Highlights:
· Traffic grew 9% to 183.7m, despite Boeing delays.
· Rev. per pax up 15% (ave. fare +21% & ancil. rev.
+3%).
· Fuel bill rose 32% (+€1.25bn) to €5.14bn.
· ESG ratings upgraded (MSCI 'A' & CDP 'A-') & strong
85% CSAT score achieved.
· 146x B737 "Gamechangers" in 584 aircraft fleet at
Mar. 2024 due to Boeing delays.
· 5 new bases and over 200 new routes open for S.24.
· FY25 fuel over 70% hedged at just under $80bbl saving
€450m.
· Maiden int. div. €0.175 paid in Feb. Final div. of
€0.178 (payable in Sept.).
· 300x B737-MAX-10 order underpins growth to 300m pax (FY34)
subject to Boeing deliveries.
Ryanair's Group CEO Michael
O'Leary, said:
ENVIRONMENT:
"CDP recently awarded Ryanair an
'A-' climate rating (previously 'B'), topping off a year of ESG
upgrades incl. our industry leading MSCI 'A' rating (up from
'BBB'), and retention of our Sustainalytics ranking as Europe's
No.1 airline for ESG. Our new aircraft and increasing use of
SAF has positioned Ryanair as one of the EU's most environmentally
efficient major airlines. In FY24 we took delivery of 48x
B737-8200 "Gamechangers"
(4% more seats, 16% less fuel & CO2) and we retro-fitted
winglets on over 25% of our B737NG fleet (target 409 by 2026),
reducing fuel burn by 1.5% and noise by 6%. Last year we
expanded our SAF partnerships (incl. our first UK delivery from
Shell) and we remain on track to achieve our ambitious 2030 goal of
powering 12.5% of Ryanair flights with SAF (10% supply already
secured). In Apr. we extended our partnership with Trinity
College Dublin's Sustainable Aviation Research Centre ("TCD") to
2030. TCD's valuable research facility supports the
acceleration of SAF deployment across Europe.
In 2023 Europe suffered 67 days of
ATC strikes, causing thousands of (avoidable) flight cancellations
to/from Germany, Spain, Italy and the UK while France (in
particular) uses minimum service laws to overprotect French
local/domestic flights. As we head into S.24, we again call
on the EU Commission to deliver urgent reform of Europe's
inefficient ATC system, by protecting overflights (during national
strikes) which would deliver important environmental improvements
in EU air travel. Regrettably, there has been zero action
from the Commission on this environmental initiative. We
again call on Commission President Ursula von der Leyen to
defend the single market for air travel by protecting 100% of
overflights during national ATC strikes, as is already the case in
Greece, Italy and Spain.
GOVERNANCE:
The Board is pleased to welcome 2
new NEDs from 1 July, Ms. Jinane Laghrari Laabi (Morocco) and Ms.
Amber Rudd (UK). Jinane is a former partner with McKinsey
& Company (Casablanca) covering Morocco, Africa & Middle
East. Amber is a former UK MP who held senior cabinet
positions including Home Secretary and Secretary of State for
Energy and Climate Change. To facilitate these appointments,
Louise Phelan and Michael Cawley have confirmed that they will step
down from the Board at the end of June having completed their 9
year tenure and we thank them sincerely for their leadership and
service. These new appointments, which align with our orderly
succession plans, further enhance Ryanair's Board diversity
(geographic, gender and ethnic balance) with a 50:50 gender split
following these latest changes. Our Chairman (Stan McCarthy)
recently refreshed Board Committees to reflect these Board
changes.
During FY24, Ryanair's EU ownership
continued to increase and was just over 48% at year-end (up from
46%).
FLEET &
GROWTH:
Ryanair had a fleet of 146x B737
Gamechangers at year-end and we hope to increase this to 158 by the
end of July, which is 23 short of our contracted Boeing
deliveries. We continue to work closely with Boeing CEO (Dave
Calhoun), CFO (Brian West) and the new Seattle management team to
improve quality and accelerate B737 aircraft deliveries.
There remains a risk that Boeing deliveries could slip
further. We plan to deliver as much growth as possible for
passengers and airport partners in S.24, although these delays mean
more traffic growth will occur in lower yielding H2 than
planned. To facilitate this growth, we will continue to take
delivery of B737s through Jul., Aug., and Sept., and Lauda recently
extended 3x A320 op. leases by 4-years to 2028.
Travel demand in Europe is strong
for S.24 and, despite Boeing delivery delays, we will operate our
largest ever Summer schedule with over 200 new routes (and 5 new
bases). S.24 short-haul EU capacity is constrained as
competitor airlines ground A320 aircraft for P&W engine repairs
(these disruptions will likely run into 2026) and OEMs struggle to
recover their delivery backlogs. We therefore urge customers
to book Summer travel early on www.ryanair.com
to secure the best airfares before they sell
out.
We expect European airline
consolidation to continue, with the takeover of ITA (Italy) and Air
Europa (Spain) progressing and the sale of TAP (Portugal)
next. This, in addition to A320 fleet groundings and the
large backlog of OEM aircraft deliveries, is likely to constrain
capacity growth in Europe for some years. These capacity
constraints, combined with our significant cost advantage (incl.
FY25 fuel hedge savings of €450m), strong balance sheet, low-cost
aircraft orders and industry leading resilience, will (we believe)
underpin a decade of profitable growth for Ryanair as we grow to
300m passengers by FY34.
FY24 BUSINESS
REVIEW:
Revenue &
Costs:
FY24 scheduled revenue increased 32%
to €9.15bn. Traffic grew 9% to 183.7m while ave. fare rose
21% to €49.80, thanks to a record H1 and strong Easter traffic in
late Mar., offset by softer than expected Q3 fares and load factors
(following the sudden, but welcome, removal of Ryanair flights from
many OTA Pirate websites in early Dec.). Ancillary sales
increased 12% to €4.30bn (c.€23.40 per passenger). Total FY24
revenue rose 25% to €13.44bn. Operating costs increased 24%
to €11.38bn, primarily due to a 32% increase in fuel costs, higher
staff costs (incl. pay restoration, crew, engineering & handler
pay rises, higher crewing ratios and pilot productivity pay as we
improve operational resilience) and Boeing delivery delays.
More importantly, the widening cost gap between Ryanair and our EU
competitors (which is further enhanced by Ryanair's low-cost
financing and net interest income) remains a growing competitive
advantage.
Our FY25 fuel requirements are over
70% hedged at just under $80bbl and 80% of €/$ opex is hedged at
$1.11. This strong hedge position locks-in approx. €450m
savings on fuel, and substantially insulates the Group from current
fuel price volatility.
Balance Sheet &
Liquidity:
Our balance sheet remains one of the
strongest in the industry with a BBB+ credit rating (both S&P
and Fitch) and €4.12bn gross cash at year-end, despite €2.4bn capex
and well over €1bn debt repayments. Year-end net cash was
€1.37bn (PY: €0.56bn), somewhat boosted by Boeing delivery
delays. Our owned B737 fleet (556 aircraft) is fully
unencumbered, which significantly widens our cost advantage over
competitor airlines, many of whom are exposed to rising aircraft
lease and financing costs.
SHAREHOLDER
RETURNS:
Our strategy, as Ryanair recovered
from Covid, was to prioritise pay restoration and multi-year pay
increases for our people, which has now been delivered.
Secondly, in a higher interest rate environment, we intended to pay
down remaining debt as it matures in 2025 and 2026, while also
financing our aircraft capex from internal resources. Once
these priorities have been secured, Group policy is to prioritise
growth to drive shareholder value while maintaining a strong,
investment grade, balance sheet, and delivering shareholder
returns.
In line with the above Capital
Allocation Policy, Ryanair paid an interim dividend of €0.175 per
share in Feb. with a final dividend of €0.178 per share due in
Sept. following our AGM. Given current surplus cash, the
Board has approved a €700m share buyback now (which will formally
launch later this week). This buyback when completed, will
increase the funds Ryanair has returned to shareholders since 2008
to over €7.8bn.
OUTLOOK:
Ryanair expects to grow FY25 traffic
by 8% (198m to 200m passengers), subject to Boeing deliveries
returning to contracted levels before year-end. Our cost
advantage over competitors continues to widen, even though we
expect FY25 unit costs to rise modestly as ex-fuel costs (incl.
annualised pay & productivity allowance increases, higher
handling & ATC fees and the impact of Gamechanger delivery
delays on crewing ratios and fixed costs) is substantially offset
by our fuel hedge savings and our rising interest income.
With EU short-haul capacity constrained, S.24 demand is positive,
with bookings trending ahead of last year. Recent pricing is
softer than we expected, with Q1 requiring more price stimulation
than last year (particularly as half of Easter moved into Mar. and
out of Apr.). While visibility is limited, and the
outcome will be heavily dependent on close-in peak S.24 pricing, we
remain cautiously optimistic that peak S.24 fares will be flat to
modestly ahead of last summer. Q4 FY25 will not benefit from
an early Easter (as it did in FY24). It is therefore too
early to be able to provide sensible or accurate FY25 PAT
guidance. The final outcome for FY25 will be heavily
dependent upon avoiding adverse events during FY25 (such as wars in
Ukraine and the Middle East, extensive ATC disruptions or further
Boeing delivery delays)."
ENDS
For further information
please contact:
www.ryanair.com
|
Neil Sorahan
Ryanair Holdings plc
Tel: +353-1-9451212
|
Paul Clifford
Drury
Tel: +353-1-260-5000
|
Ryanair Holdings plc, Europe's largest airline group, is the
parent company of Buzz, Lauda, Malta Air, Ryanair & Ryanair UK.
Carrying c.200m guests p.a. on over 3,600 daily flights from 95
bases, the Group connects 235 airports in 37 countries on a fleet
of 584 aircraft, with a further 364 Boeing 737 on order, which will
enable the Ryanair Group to grow traffic to 300m p.a. by FY34.
Ryanair has a team of over 27,000 highly skilled aviation
professionals delivering Europe's No.1 operational performance, and
an industry leading 38-year safety record. Ryanair is one of the
most efficient major EU airlines. With a young fleet and high
load factors, Ryanair's CO₂ per pax/km is just 65
grams.
|
|
|
|
|
Notes:
*
Non-IFRS financial measure, excl. €114m except. unrealised
mark-to-market loss (timing unwind) on fuel caps.
Certain of the information
included in this release is forward looking and is subject to
important risks and uncertainties that could cause actual results
to differ materially. It is not reasonably possible to
itemise all of the many factors and specific events that could
affect the outlook and results of an airline operating in the
European economy. Among the factors that are subject to
change and could significantly impact Ryanair's expected results
are the airline pricing environment, fuel costs, competition from
new and existing carriers, market prices for the replacement of
aircraft, costs associated with environmental, safety and security
measures, actions of the Irish, U.K., European Union ("EU") and
other governments and their respective regulatory agencies,
post-Brexit uncertainties, weather related disruptions, ATC strikes
and staffing related disruptions, delays in the delivery of
contracted aircraft, fluctuations in currency exchange rates and
interest rates, airport access and charges, labour relations, the
economic environment of the airline industry, the general economic
environment in Ireland, the U.K. and Continental Europe, the
general willingness of passengers to travel and other economics,
social and political factors, global pandemics such as Covid-19 and
unforeseen security events.
Ryanair Holdings plc and Subsidiaries
Condensed Consolidated
Preliminary Income Statement for the Year Ended March 31, 2024
(unaudited)
|
|
|
Pre-
Except.
|
IFRS
Year
Ended
Mar 31,
|
Pre-Except.
Year
Ended
Mar,
|
Except.
Year
Ended
Mar
31,
|
IFRS
Year
Ended
Mar
31,
|
|
|
|
Change
|
2024
|
2023
|
2023
|
2023
|
|
|
Note
|
%*
|
€M
|
€M
|
€M
|
€M
|
Operating revenues
|
|
|
|
|
|
|
|
Scheduled revenues
|
|
+32%
|
9,145.1
|
6,930.3
|
-
|
6,930.3
|
|
Ancillary revenues
|
|
+12%
|
4,298.7
|
3,844.9
|
-
|
3,844.9
|
Total operating revenues
|
8
|
+25%
|
13,443.8
|
10,775.2
|
-
|
10,775.2
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
|
|
|
|
|
Fuel and oil
|
|
-32%
|
5,142.6
|
3,895.2
|
130.5
|
4,025.7
|
|
Staff costs
|
|
-26%
|
1,500.0
|
1,191.4
|
-
|
1,191.4
|
|
Airport and handling
charges
|
|
-20%
|
1,484.5
|
1,240.5
|
-
|
1,240.5
|
|
Depreciation
|
|
-15%
|
1,059.5
|
923.2
|
-
|
923.2
|
|
Route charges
|
|
-13%
|
1,024.4
|
903.7
|
-
|
903.7
|
|
Marketing, distribution and
other
|
|
-12%
|
757.2
|
674.4
|
-
|
674.4
|
|
Maintenance, materials and
repairs
|
|
-11%
|
414.9
|
373.7
|
-
|
373.7
|
Total operating expenses
|
|
-24%
|
11,383.1
|
9,202.1
|
130.5
|
9,332.6
|
|
|
|
|
|
|
|
|
Operating profit/(loss)
|
|
+31%
|
2,060.7
|
1,573.1
|
(130.5)
|
1,442.6
|
|
|
|
|
|
|
|
Other income/(expense)
|
|
|
|
|
|
|
|
Net finance
income/(expense)
|
|
|
61.8
|
(34.4)
|
-
|
(34.4)
|
|
Foreign exchange
|
|
|
5.5
|
34.3
|
-
|
34.3
|
Total other income/(expense)
|
|
|
67.3
|
(0.1)
|
-
|
(0.1)
|
|
|
|
|
|
|
|
|
Profit/(loss) before tax
|
|
+35%
|
2,128.0
|
1,573.0
|
(130.5)
|
1,442.5
|
|
|
|
|
|
|
|
|
|
Tax (expense)/credit
|
5
|
|
(210.9)
|
(145.0)
|
16.3
|
(128.7)
|
|
|
|
|
|
|
|
|
Profit/(loss) for the year - all attributable to equity
holders of parent
|
+34%
|
1,917.1
|
1,428.0
|
(114.2)
|
1,313.8
|
|
|
|
|
|
|
|
|
|
Earnings per ordinary share
(€)
|
|
|
|
|
|
|
|
Basic
|
|
+46%
|
1.6828
|
|
|
1.1557
|
|
Diluted
|
|
+45%
|
1.6743
|
|
|
1.1529
|
|
Weighted avg. no. of ord. shares (in
Ms)
|
|
|
|
|
|
|
|
Basic
|
|
|
1,139.2
|
|
|
1,136.8
|
|
Diluted
|
|
|
1,145.0
|
|
|
1,139.6
|
|
|
|
|
|
|
|
| |
|
*'+' is favourable and '-' is adverse
year-on-year.
Ryanair Holdings plc and Subsidiaries
Condensed Consolidated
Preliminary Statement of Comprehensive Income for the Year Ended
March 31, 2024 (unaudited)
|
Year Ended
|
Year
Ended
|
|
Mar 31,
|
Mar
31,
|
2024
|
2023
|
|
€M
|
€M
|
|
|
|
Profit for the year
|
1,917.1
|
1,313.8
|
|
|
|
Other comprehensive income/(loss):
|
|
|
Items that will not be
reclassified subsequently to profit or loss:
|
|
|
Net actuarial gain
|
6.6
|
-
|
Items that are or may be
reclassified subsequently to profit or loss:
|
|
|
Movements in hedging reserve, net of tax:
|
|
|
Net movement in cash-flow hedge
reserve
|
234.5
|
(1,264.0)
|
Other comprehensive income/(loss) for the year, net of income
tax
|
241.1
|
(1,264.0)
|
Total comprehensive income for the year - attributable to
equity holders of parent
|
|
|
2,158.2
|
49.8
|
Ryanair Holdings plc and Subsidiaries
Condensed Consolidated
Preliminary Statement of Cash Flows for the Year Ended March 31,
2024 (unaudited)
|
|
|
Year
Ended
|
Year
Ended
|
|
|
|
|
Mar 31,
|
Mar
31,
|
|
|
2024
|
2023
|
|
|
|
Note
|
€M
|
€M
|
|
Operating activities
|
|
|
|
|
|
Profit after tax
|
|
1,917.1
|
1,313.8
|
|
|
|
|
|
|
|
Adjustments to reconcile
profit after tax to net cash from operating
activities
|
|
|
|
|
|
Depreciation
|
|
1,059.5
|
923.2
|
|
|
(Increase) in inventories
|
|
(0.2)
|
(1.7)
|
|
|
Tax expense
|
|
210.9
|
128.7
|
|
|
Share-based payments
|
|
(3.9)
|
16.2
|
|
|
(Increase) in trade
receivables
|
|
(16.7)
|
(16.2)
|
|
|
(Increase) in other assets
|
|
(359.0)
|
(482.0)
|
|
|
(Decrease)/increase in trade
payables
|
|
(46.4)
|
31.2
|
|
|
Increase in accrued expenses and
other liabilities
|
|
449.6
|
1,788.9
|
|
|
(Decrease)/increase in
provisions
|
|
(8.3)
|
33.7
|
|
|
Increase in finance income
|
|
3.6
|
10.4
|
|
|
Decrease in finance
expense
|
|
7.9
|
4.2
|
|
|
Foreign exchange and fair
value*
|
|
(7.1)
|
144.7
|
|
|
Income tax (paid)
|
|
(49.1)
|
(4.1)
|
|
Net
cash inflow from operating activities
|
|
3,157.9
|
3,891.0
|
|
|
|
|
|
|
|
Investing activities
|
|
|
|
|
|
Capital expenditure - purchase of
property, plant and equipment
|
|
(2,391.9)
|
(1,914.7)
|
|
|
Disposal proceeds
|
|
-
|
4.9
|
|
|
Supplier reimbursements
|
11
|
-
|
127.5
|
|
|
Decrease in restricted
cash
|
|
13.1
|
3.2
|
|
|
Decrease/(increase) in financial
assets: cash > 3 months
|
|
818.4
|
(122.1)
|
|
Net
cash used in investing activities
|
|
(1,560.4)
|
(1,901.2)
|
|
|
|
|
|
|
|
Financing activities
|
|
|
|
|
|
Proceeds from shares
issued
|
12
|
16.4
|
31.7
|
|
|
Dividends paid
|
12
|
(199.5)
|
-
|
|
|
Repayment of borrowings
|
|
(1,100.5)
|
(1,039.4)
|
|
|
Lease liabilities paid
|
|
(42.7)
|
(46.3)
|
|
Net
cash used in financing activities
|
|
(1,326.3)
|
(1,054.0)
|
|
|
|
|
|
|
|
Increase in cash and cash equivalents
|
|
271.2
|
935.8
|
|
|
Net foreign exchange
differences
|
|
4.9
|
(5.5)
|
|
|
Cash and cash equivalents at
beginning of the year
|
|
3,599.3
|
2,669.0
|
|
Cash
and cash equivalents at end of the year
|
11
|
3,875.4
|
3,599.3
|
|
|
|
|
|
|
Included in the cash flows from operating activities for the
year are the following amounts:
|
|
|
|
|
Interest income received
|
|
148.4
|
52.7
|
|
Interest expense paid
|
|
(88.7)
|
(75.0)
|
|
*The year ended March 31, 2023, includes an exceptional loss
of €130.5M pre-tax, attributable to the fair value measurement of
jet fuel call options.
Ryanair Holdings plc and Subsidiaries
Condensed Consolidated
Preliminary Statement of Changes in Shareholders' Equity for the
Year Ended March 31, 2024 (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issued
|
Share
|
Other
|
|
Other
|
|
|
|
Ordinary
|
Share
|
Premium
|
Undenom.
|
Retained
|
Reserves
|
Other
|
|
|
Shares
|
Capital
|
Account
|
Capital
|
Earnings
|
Hedging
|
Reserves
|
Total
|
|
M
|
€M
|
€M
|
€M
|
€M
|
€M
|
€M
|
€M
|
Balance at April 01, 2022
|
1,134.6
|
6.8
|
1,328.2
|
3.5
|
2,880.9
|
1,295.4
|
30.5
|
5,545.3
|
Profit for the year
|
-
|
-
|
-
|
-
|
1,313.8
|
-
|
-
|
1,313.8
|
Other comprehensive income/(loss)
|
|
|
|
|
|
|
|
|
Net movements in cash-flow
reserve
|
-
|
-
|
-
|
-
|
-
|
(1,264.0)
|
-
|
(1,264.0)
|
Total other comprehensive
income
|
-
|
-
|
-
|
-
|
-
|
(1,264.0)
|
-
|
(1,264.0)
|
Total comprehensive
income/(loss)
|
-
|
-
|
-
|
-
|
1,313.8
|
(1,264.0)
|
-
|
49.8
|
Transactions with owners of the
|
|
|
|
|
|
|
|
|
Company recognised directly in equity
|
|
|
|
|
|
|
|
|
Issue of ordinary equity
shares
|
4.1
|
0.1
|
51.7
|
-
|
(20.1)
|
-
|
-
|
31.7
|
Share-based payments
|
-
|
-
|
-
|
-
|
-
|
-
|
16.2
|
16.2
|
Transfer of exercised and expired
share-based awards
|
-
|
-
|
-
|
-
|
5.4
|
-
|
(5.4)
|
-
|
Balance at March 31, 2023
|
1,138.7
|
6.9
|
1,379.9
|
3.5
|
4,180.0
|
31.4
|
41.3
|
5,643.0
|
Profit for the year
|
-
|
-
|
-
|
-
|
1,917.1
|
-
|
-
|
1,917.1
|
Other comprehensive income
|
|
|
|
|
|
|
|
|
Net actuarial gains from retirement
benefit plans
|
-
|
-
|
-
|
-
|
6.6
|
-
|
-
|
6.6
|
Net movements in cash-flow
reserve
|
-
|
-
|
-
|
-
|
-
|
234.5
|
-
|
234.5
|
Total other comprehensive
income
|
-
|
-
|
-
|
-
|
6.6
|
234.5
|
-
|
241.1
|
Total comprehensive
income
|
-
|
-
|
-
|
-
|
1,923.7
|
234.5
|
-
|
2,158.2
|
Transactions with owners of the
|
|
|
|
|
|
|
|
|
Company recognised directly in equity
|
|
|
|
|
|
|
|
|
Issue of ordinary equity
shares
|
1.4
|
-
|
24.4
|
-
|
(8.0)
|
-
|
-
|
16.4
|
Dividends paid
|
-
|
-
|
-
|
-
|
(199.5)
|
-
|
-
|
(199.5)
|
Share-based payments
|
-
|
-
|
-
|
-
|
-
|
-
|
(3.9)
|
(3.9)
|
Transfer of exercised and expired
share-based awards
|
-
|
-
|
-
|
-
|
3.6
|
-
|
(3.6)
|
-
|
Balance at March 31, 2024
|
1,140.1
|
6.9
|
1,404.3
|
3.5
|
5,899.8
|
265.9
|
33.8
|
7,614.2
|
Ryanair Holdings plc and
Subsidiaries
MD&A Year Ended March 31, 2024 ("FY24")
Introduction
For the purposes of the Management
Discussion and Analysis ("MD&A") (with the exception of the
balance sheet commentary) all figures and comments are by reference
to the year ended March 31, 2024 results excluding the FY23
exceptional item referred to below.
The Group, as part of its risk
management strategy, utilised jet fuel call options to set a
maximum price for approximately 16% of FY23 expected fuel
requirements. These instruments were measured at fair value through
the income statement. Following the Russian invasion of Ukraine in
February 2022, the price of jet fuel significantly increased. An
exceptional unrealised mark-to-market loss of €114M (after-tax) was
recorded on the Group's jet fuel call options for the year ended
March 31, 2023. This was a timing unwind of the exceptional
unrealised mark-to-market gain recorded for the year ended March
31, 2022.
Income
Statement
Scheduled revenues:
Scheduled revenues increased
32% to €9.15BN due to 9% traffic growth
(from 168.6M to
183.7M) and a 21% increase
in average fare to approx. €49.80.
Ancillary revenues:
Ancillary revenues increased
12% to €4.30BN as traffic grew (up 9%) and
spend on discretionary services such as priority boarding, reserved
seating and inflight sales increased to approx. €23.40 per
passenger.
Total revenues:
As a result of the above, total
revenues increased 25% to
€13.44BN.
Operating Expenses:
Fuel and oil:
Fuel and oil rose 32% to
€5.14BN due to an 8% increase in sectors flown and
significantly higher jet fuel prices, offset by fuel burn savings
on the new B737-8200 "Gamechanger" aircraft.
Staff costs:
Staff costs increased 26% to €1.50BN due to the larger fleet,
8% higher sectors, investment in operational resilience with higher
crewing ratios, restoration of Covid-19 pay reductions, crew
productivity pay increases implemented and Boeing delivery
delays.
Airport and handling charges:
Airport and handling charges rose
20% to €1.48BN, due to 9%
traffic growth, higher ground ATC and handling rates, and
termination of temporary Covid reliefs (included in the prior year
comparative).
Depreciation:
Depreciation increased 15% to €1.06BN, primarily due to higher
amortisation resulting from the delivery of 48 new "Gamechanger"
aircraft and higher aircraft utilisation (flight hours up
9%).
Route charges:
Route charges increased 13% to €1.02BN, due to the 9% increase
in flight hours and higher Eurocontrol rates.
Marketing, distribution and other:
Marketing, distribution and other
rose 12% to €0.76BN due to
higher activity in the year (including increased credit card
transactions and higher inflight sales) and increased EU261 and
right-to-care passenger compensation due to delays arising
primarily from the knock-on effect of ATC related disruptions
(including the NATS system failure in August 2023, and a record
number of French ATC strikes).
Maintenance, materials and repairs:
Maintenance, materials and repairs
increased 11% to €0.41BN
due to higher utilisation, engineering pay increases and lease
handback costs.
Other income/(expense):
Net finance income was positive at
€62M due to higher deposit
interest rates, lower gross debt, and a positive net cash position
throughout the year. Foreign exchange translation reflects the
impact of €/US$ exchange rate movements on balance sheet
revaluations.
Balance sheet:
Gross cash was €4.12BN at March 31, 2024 despite
€2.39BN capex and well over €1BN debt repayments. Gross debt was
€2.75BN and net cash was €1.37BN at March 31, 2024 (€0.56BN at
March 31, 2023).
Other assets increased by €0.40BN at
March 31, 2024 due to an increase in ETS carbon credits held.
Accrued expenses and other liabilities increased by €0.44BN, due to
higher ETS liabilities (following the partial unwind of the free
allowances from January 2024 and increased activity in the year)
and future fly (which reflects the timing of half of Easter traffic
in March 2024 compared to all of Easter traffic in April
2023).
Shareholders' equity:
Shareholders' equity increased by
€1.97BN to €7.61BN in the
year primarily due to a €1.92BN net profit and an IFRS hedge
accounting increase in derivatives of €0.23BN, offset by a €0.20BN
dividend payment.
Ryanair Holdings plc and
Subsidiaries
Notes forming Part of the Condensed
Consolidated
Preliminary Financial
Statements
1.
Basis of preparation and material accounting
policies
Ryanair Holdings plc (the "Company")
is a company domiciled in Ireland. The unaudited condensed
consolidated preliminary financial statements for the year ended
March 31, 2024 ("preliminary financial statements") comprise the
results of the Company and its subsidiaries (together referred to
as the "Group").
The March 31, 2024 figures and the
March 31, 2023 comparative figures do not include all of the
information required for full annual financial statements and
therefore do not constitute statutory financial statements of the
Group within the meaning of the Companies Act, 2014. The
consolidated financial statements of the Group for the year ended
March 31, 2023, together with the independent auditor's report
thereon, are available on the Company's website and were filed with
the Irish Registrar of Companies following the Company's Annual
General Meeting. The auditor's report on those financial statements
was unqualified. The financial information presented in these
preliminary financial statements does not represent full statutory
accounts as defined by the Companies Act 2014. The statutory
accounts of Ryanair Holdings plc for the year ended March 31, 2024,
are expected to be filed with the Companies Registration Office by
the end of 2024. The accounting policies, presentation and methods
of computation followed in the preliminary financial statements are
consistent with those applied in the Company's latest Annual
Report.
The Audit Committee, upon delegation
of authority by the Board of Directors, approved the unaudited
condensed consolidated preliminary financial statements for the
year ended March 31, 2024 on May 17, 2024.
Except as stated otherwise below,
the preliminary financial statements for the year ended March 31,
2024 have been prepared in accordance with the accounting policies
set out in the Group's most recent published consolidated financial
statements, which were prepared in accordance with IFRS as adopted
by the EU and also in compliance with IFRS Accounting Standards as
issued by the International Accounting Standards Board
(IASB).
New IFRS standards and amendments adopted during the
year
The following new and amended IFRS
standards, amendments and IFRIC interpretations, have been issued
by the IASB, and have also been endorsed by the EU unless stated
otherwise. These standards are effective for the first time for the
Group's financial year beginning on April 1, 2023 and therefore
have been applied by the Group in these condensed consolidated
preliminary financial statements:
·
Amendments to IAS 12 Income Taxes: Deferred Tax
related to Assets and Liabilities arising from a Single Transaction
(effective on or after January 1, 2023).
·
Amendments to IAS 8 Accounting Policies, Changes
in Accounting Estimates and Errors: Definition of Accounting
Estimates (effective on or after January 1, 2023).
·
Amendments to IAS 1 Presentation of Financial
Statements and IFRS Practice Statement 2: Disclosure of Accounting
policies (effective on or after January 1, 2023).
·
IFRS 17 Insurance Contracts; including amendments
to IFRS 17 (effective on or after January 1, 2023).
·
Amendments to IFRS 17 Insurance contracts: Initial
Application of IFRS 17 and IFRS 9 - Comparative Information
(effective on or after January 1, 2023).
·
Amendments to IAS 12 Income taxes: International
Tax Reform - Pillar Two Model Rules (effective on or after January
1, 2023).
The adoption of these new or amended
standards did not have a material impact on the Group's financial
position or results in the year ended March 31, 2024, and are not
expected to have a material impact on financial periods
thereafter.
New IFRS standards and amendments issued but not yet
effective
The following new or amended
standards and interpretations will be adopted for the purposes of
the preparation of future financial statements, where applicable.
While under review, we do not anticipate that the adoption of these
new or revised standards and interpretations will have a material
impact on our financial position or performance:
·
Amendments to IAS 1 Presentation of Financial
Statements: Classification of Liabilities as Current or
Non-current, Classification of Liabilities as Current or
Non-current - Deferral of Effective Date, and Non-current
Liabilities with Covenants (effective on or after January 1,
2024).
·
Amendments to IFRS 16 Leases: Lease Liability in a
Sale & Leaseback (effective on or after January 1,
2024).
·
Amendments to IAS 7 Statement of Cash Flows and
IFRS 7 Financial Instruments: Disclosures: Supplier Finance
Arrangements (effective on or after January 1, 2024).*
·
Amendments to IAS 21 The Effects of Changes in
Foreign Exchange Rates: Lack of Exchangeability (effective on or
after January 1, 2025).*
·
IFRS 18 Presentation and Disclosure in Financial
Statements (effective on or after January 1, 2027).*
* These standards or amendments to
standards are not as of yet EU endorsed.
2.
Board of Directors
Details of the members of the
Company's Board of Directors are set forth on pages 119 and 120 of
the Group's 2023 Annual Report. Bertrand Grabowski was appointed to
the Board with effect from October 1, 2023. Roberta Neri joined the
Board with effect from February 1, 2024 and Dick Milliken retired
from the Board with effect from September 14, 2023.
3.
Judgements and estimates
The preparation of financial
statements in conformity with IFRS requires management to make
estimates, judgements and assumptions that affect the application
of policies and reported amounts of assets and liabilities, income
and expenses. These estimates and associated assumptions are based
on historical experience and various other factors believed to be
reasonable under the circumstances, and the results of such
estimates form the basis of carrying values of assets and
liabilities that are not readily apparent from other sources.
Actual results could differ materially from these estimates. These
underlying assumptions are reviewed on an ongoing basis. A revision
to an accounting estimate is recognised in the period in which the
estimate is revised if the revision affects only that period or in
the period of the revision and future periods if these are also
affected. Principal sources of estimation uncertainty have been set
forth below. Actual results may differ from estimates.
Critical estimates
Long-lived assets
At March 31, 2024, the Group had
€10.85BN of property, plant and equipment long-lived assets, of
which €10.61BN were aircraft related. In accounting for long-lived
assets, the Group must make estimates about the expected useful
lives of the assets and the expected residual values of the
assets.
In estimating the useful lives and
expected residual values of the aircraft component, the Group
considered a number of factors, including its own historic
experience and past practices of aircraft disposals, renewal
programmes, forecasted growth plans, external valuations from
independent appraisers, recommendations from the aircraft supplier
and manufacturer and other industry-available
information.
The Group's estimate of each
aircraft's residual value is 15% of market value on delivery, based
on independent valuations and actual aircraft disposals during
prior periods, and each aircraft's useful life is determined to be
23 years.
Revisions to these estimates could
be caused by changes to maintenance programmes, changes in
utilisation of the aircraft, governmental regulations on ageing
aircraft, changes in new aircraft technology, changes in
governmental and environmental taxes, changes in new aircraft fuel
efficiency and changing market prices for new and used aircraft of
the same or similar types. The Group therefore evaluates its
estimates and assumptions in each reporting period, and, when
warranted, adjusts these assumptions. Any adjustments are accounted
for on a prospective basis through depreciation expense.
Critical judgements
In the opinion of the Directors, the
following significant judgements were exercised in the preparation
of the financial statements:
Long-lived assets
On acquisition a judgement is made
to allocate an element of the cost of an acquired aircraft to the
cost of major airframe and engine overhauls, reflecting its service
potential and the maintenance condition of its engines and
airframe. This cost, which can equate to a substantial element of
the total aircraft cost, is amortised over the shorter of the
period to the next maintenance check (usually between 8 and 12
years) or the remaining useful life of the aircraft.
4.
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.
5.
Income tax expense
The Group's consolidated tax expense
for the year ended March 31, 2024 of €211M (March 31, 2023:
pre-exceptional €145M) comprises a current tax charge of €50M and a
deferred tax charge of €161M primarily relating to the temporary
differences for property, plant and equipment and net operating
losses. No significant or unusual tax charges or credits arose
during the year. The effective tax rate of 10% for the year
(2023: 9%) is the result of the mix of profits incurred by
Ryanair's operating subsidiaries primarily in Ireland, Malta,
Poland and the U.K.
6.
Contingencies
The Group is engaged in litigation
arising in the ordinary course of its business. The Group
does not believe that any such litigation will individually, or in
aggregate, have a material adverse effect on the financial
condition of the Group. Should the Group be unsuccessful in these
litigation actions, management believes the possible liabilities
then arising cannot be determined but are not expected to
materially adversely affect the Group's results of operations or
financial position.
7.
Capital commitments
At March 31, 2024 the Group had an
operating fleet of 557 (2023: 509) Boeing 737 and 27 (2023: 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. At March 31, 2024, the
Group had taken delivery of 146 of these aircraft. The remaining
aircraft are due to be delivered before the end of FY25. In May
2023, the Group ordered up to 300 (150 firm and 150 options) new
Boeing 737-MAX-10 aircraft for delivery between 2027 to 2033. This
transaction was approved at the Company's AGM in September
2023.
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 Company's Chief Operating
Decision Maker (CODM).
The Group comprises five separate
airlines, Buzz, Lauda Europe (Lauda), Malta Air, Ryanair DAC and
Ryanair UK (which is consolidated within Ryanair DAC). Ryanair DAC
is reported as a separate segment as it exceeds the applicable
quantitative thresholds for reporting purposes. Buzz, Malta and
Lauda do not individually exceed the quantitative thresholds and
accordingly are presented on an aggregate basis as they exhibit
similar economic characteristics and their services, activities and
operations are sufficiently similar in nature. The results of these
operations are included as 'Other Airlines.'
The CODM assesses the performance of
the business based on the profit after tax of each airline for the
reporting period. Resource allocation decisions for all airlines
are based on airline performance for the relevant period, with the
objective in making these resource allocation decisions being to
optimise consolidated financial results. Reportable segment
information is presented as follows:
Year Ended
|
Ryanair DAC
|
Other
Airlines
|
Elimination
|
Total
|
|
Mar 31,
|
Mar 31,
|
Mar 31,
|
Mar 31,
|
2024
|
2024
|
2024
|
2024
|
|
€M
|
€M
|
€M
|
€M
|
Scheduled revenue
|
9,037.7
|
107.4
|
-
|
9,145.1
|
Ancillary revenue
|
4,298.7
|
-
|
-
|
4,298.7
|
Inter-segment revenue
|
744.6
|
1,366.1
|
(2,110.7)
|
-
|
Segment
revenue
|
14,081.0
|
1,473.5
|
(2,110.7)
|
13,443.8
|
|
|
|
|
|
Reportable segment profit after income tax
|
1,860.0
|
57.1
|
-
|
1,917.1
|
|
|
|
|
|
Other segment information:
|
|
|
|
|
Depreciation
|
(1,018.0)
|
(41.5)
|
-
|
(1,059.5)
|
Net finance
income/(expense)
|
70.1
|
(8.3)
|
-
|
61.8
|
Capital expenditure
|
(1,926.6)
|
(42.7)
|
-
|
(1,969.3)
|
|
|
|
|
|
Segment assets
|
16,867.5
|
308.1
|
-
|
17,175.6
|
Segment liabilities
|
(8,948.7)
|
(612.7)
|
-
|
(9,561.4)
|
Year Ended
|
Ryanair DAC
|
Other
Airlines
|
Elimination
|
Total
|
|
Mar 31,
|
Mar 31,
|
Mar 31,
|
Mar 31,
|
2023
|
2023
|
2023
|
2023
|
|
€M
|
€M
|
€M
|
€M
|
Scheduled revenue
|
6,843.4
|
86.9
|
-
|
6,930.3
|
Ancillary revenue
|
3,844.9
|
-
|
-
|
3,844.9
|
Inter-segment revenue
|
759.4
|
1,294.5
|
(2,053.9)
|
-
|
Segment
revenue
|
11,447.7
|
1,381.4
|
(2,053.9)
|
10,775.2
|
|
|
|
|
|
Reportable segment profit after income tax
(i)
|
1,382.3
|
45.7
|
-
|
1,428.0
|
|
|
|
|
|
Other segment information:
|
|
|
|
|
Net finance expense
|
(27.8)
|
(6.6)
|
-
|
(34.4)
|
Depreciation
|
(876.6)
|
(46.6)
|
-
|
(923.2)
|
Capital expenditure
|
(1,760.1)
|
(153.0)
|
-
|
(1,913.1)
|
|
|
|
|
|
Segment assets
|
15,920.4
|
485.5
|
-
|
16,405.9
|
Segment liabilities
|
(9,914.7)
|
(848.2)
|
-
|
(10,762.9)
|
(i) Reportable segment profit after income tax in the
financial year ended March 31, 2023, excludes a net exceptional
loss after tax of €114M, attributable to the fair value measurement
of jet fuel call options.
The following table disaggregates
revenue by primary geographical market. In accordance with IFRS 8,
revenue by country of departure has been provided where revenue for
that country is in excess of 10% of total revenue. Ireland is
presented as it represents the country of domicile. "Other"
includes all other countries in which the Group has
operations.
|
|
|
Year Ended
Mar 31,
2024
€M
|
Year Ended
Mar 31,
2023
€M
|
Italy
|
|
|
2,853.3
|
2,364.5
|
Spain
|
|
|
2,416.2
|
1,883.4
|
United Kingdom
|
|
|
2,031.0
|
1,589.7
|
Ireland
|
|
|
791.0
|
640.4
|
Other
|
|
|
5,352.3
|
4,297.2
|
Total revenue
|
|
|
13,443.8
|
10,775.2
|
Ancillary revenues comprise revenues
from non-flight scheduled operations, inflight sales and
internet-related services. Non-flight scheduled revenue arises from
the sale of discretionary products such as priority boarding,
allocated seats, car hire, travel insurance, airport transfers,
room reservations and other sources, including excess baggage
charges and other fees, all directly attributable to the low-fares
business.
The vast majority of ancillary
revenue is recognised at a point in time, which is typically the
flight date. The economic factors that would impact the nature,
amount, timing and uncertainty of revenue and cashflows associated
with the provision of passenger travel-related ancillary services
are homogeneous across the various component categories within
ancillary revenue. Accordingly, there is no further disaggregation
of ancillary revenue required in accordance with IFRS
15.
9.
Property, plant and equipment
Acquisitions and disposals
During the year ended March 31,
2024, net capital additions amounted to €1.93BN principally
reflecting aircraft deliveries in the year, aircraft pre-delivery
deposits and capitalised maintenance, offset by supplier
reimbursements and favourable €/US$ hedging.
10.
Related party transactions
The Company's related parties
include its subsidiaries, Directors and key management personnel.
All transactions with subsidiaries eliminate on consolidation and
are not disclosed.
There were no related party
transactions in the year ended March 31, 2024 that materially
affected the financial position or the performance of the Group
during that year and there were no changes in the related party
transactions described in the 2023 Annual Report that could have a
material effect on the financial position or performance of the
Group in the same period.
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 condensed consolidated
preliminary financial statements do not include all financial risk
management information and disclosures required in the annual
financial statements and should be read in conjunction with the
2023 Annual Report. There have been no
changes in our risk management policies in the period.
Fair value
hierarchy
Financial instruments measured at
fair value in the balance sheet are categorised by the type of
valuation method used. The different valuation levels are defined
as follows:
·
Level 1: quoted prices (unadjusted) in active
markets for identical assets or liabilities that the Group can
access at the measurement date.
·
Level 2: inputs other than quoted prices included
within Level 1 that are observable for that asset or liability,
either directly or indirectly.
·
Level 3: significant unobservable inputs for the
asset or liability.
Fair value
estimation
Fair value is the price that would
be received to sell an asset, or paid to transfer a liability, in
an orderly transaction between market participants at the
measurement date. The following methods and assumptions were used
to estimate the fair value of each material class of the Group's
financial instruments:
Financial instruments measured at fair value
·
Derivatives -
interest rate swaps: Discounted
cash-flow analyses have been used to determine their fair value,
taking into account current market inputs and rates. The Group's
credit risk and counterparty's credit risk is taken into account
when establishing fair value (Level 2).
·
Derivatives -
currency forwards, jet fuel forward contracts and carbon
contracts: A comparison of the
contracted rate to the market rate for contracts providing a
similar risk profile at March 31, 2024 has been used to establish
fair value. The Group's credit risk and counterparty's credit risk
is taken into account when establishing fair value (Level
2).
·
Derivatives - jet
fuel call options: The fair value of
jet fuel call options is determined based on standard option
pricing valuation models (Level 2).
The Group policy is to recognise any
transfers between levels of the fair value hierarchy as of the end
of the reporting period during which the transfer occurred. During
the year ended March 31, 2024, 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 at March 31, 2024 to arrive at a fair
value representing the amount payable to a third party to assume
the obligations.
The fair value of financial assets
and financial liabilities, together with the carrying amounts in
the condensed consolidated balance sheet, are as
follows:
|
At Mar 31,
|
At Mar 31,
|
At Mar 31,
|
At Mar 31,
|
|
2024
|
2024
|
2023
|
2023
|
|
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
|
3.2
|
3.2
|
53.2
|
53.2
|
- Jet fuel & carbon
derivatives contracts
|
0.1
|
0.1
|
-
|
-
|
- Interest rate swaps
|
-
|
-
|
1.4
|
1.4
|
|
3.3
|
3.3
|
54.6
|
54.6
|
Current financial assets
|
|
|
|
|
Derivative financial
instruments:
|
|
|
|
|
- U.S. dollar currency forward
contracts
|
144.0
|
144.0
|
226.2
|
226.2
|
- Jet fuel options
|
-
|
-
|
14.1
|
14.1
|
- Jet fuel & carbon derivative
contracts
|
205.5
|
205.5
|
49.6
|
49.6
|
- Interest rate swaps
|
-
|
-
|
2.2
|
2.2
|
|
349.5
|
349.5
|
292.1
|
292.1
|
Trade receivables*
|
76.4
|
|
59.7
|
|
Cash and cash
equivalents*
|
3,875.4
|
|
3,599.3
|
|
Financial asset: cash > 3
months*
|
237.8
|
|
1,056.2
|
|
Restricted cash*
|
6.4
|
|
19.5
|
|
|
4,545.5
|
349.5
|
5,026.8
|
292.1
|
Total financial assets
|
4,548.8
|
352.8
|
5,081.4
|
346.7
|
|
|
|
|
|
|
At Mar 31,
|
At Mar 31,
|
At Mar 31,
|
At Mar 31,
|
|
2024
|
2024
|
2023
|
2023
|
|
Carrying
|
Fair
|
Carrying
|
Fair
|
|
Amount
|
Value
|
Amount
|
Value
|
Non-current financial liabilities
|
€M
|
€M
|
€M
|
€M
|
Derivative financial
instruments:
|
|
|
|
|
- Jet fuel & carbon derivative
contracts
|
-
|
-
|
8.1
|
8.1
|
- U.S. dollar currency forward
contracts
|
3.3
|
3.3
|
3.1
|
3.1
|
|
3.3
|
3.3
|
11.2
|
11.2
|
Non-current maturities of
debt
|
|
|
|
|
- Long-term debt
|
488.7
|
488.7
|
812.3
|
812.3
|
- Bonds
|
2,043.5
|
1,971.6
|
2,040.9
|
1,928.4
|
|
2,532.2
|
2,460.3
|
2,853.2
|
2,740.7
|
|
2,535.5
|
2,463.6
|
2,864.4
|
2,751.9
|
|
|
|
|
|
Current financial liabilities
|
|
|
|
|
Derivative financial
instruments:
|
|
|
|
|
- Jet fuel & carbon derivative
contracts
|
178.8
|
178.8
|
341.7
|
341.7
|
- U.S. dollar currency forward
contracts
|
-
|
-
|
44.9
|
44.9
|
|
178.8
|
178.8
|
386.6
|
386.6
|
|
|
|
|
|
Current maturities of
debt:
|
|
|
|
|
- Short-term debt
|
50.0
|
50.0
|
76.8
|
76.8
|
- Promissory note**
|
-
|
-
|
230.6
|
230.6
|
- Bonds
|
-
|
-
|
749.3
|
744.3
|
|
50.0
|
50.0
|
1,056.7
|
1,051.7
|
Trade payables*
|
792.2
|
|
1,065.5
|
|
Accrued expenses*
|
1,603.1
|
|
1,276.6
|
|
|
2,624.1
|
228.8
|
3,785.4
|
1,438.3
|
Total financial
liabilities
|
5,159.6
|
2,692.4
|
6,649.8
|
4,190.2
|
*The fair value of each of these financial instruments
approximate their carrying values due to the short-term nature of
the instruments.
**During the year ended March 31, 2024, €0.2BN promissory
notes were non-cash settled.
During May 2023 the Group converted
its unsecured €750m syndicated term loan into a revolving credit
facility (at a lower margin) with an extended maturity to May 2028
(previously 2024). During FY24 the Group
repaid a maturing €750M bond and paid down €260M of its revolving
credit facility.
12.
Shareholders'
equity and shareholders' returns
During the year ended March 31,
2024, 1.4M ordinary shares were issued at a strike price of €12 per
share following the exercise of vested share options for proceeds
of €16M.
In November 2023, the Board
announced the Group's new Dividend Policy. In line with this
policy, an interim dividend of €0.175 per share was paid on
February 28, 2024 (Record Date: January 19, 2024). Dividends paid
for the year ended March 31, 2024 amounted to €200M. The Directors
propose a final dividend of €0.178 per share payable after the
Company's AGM in September 2024.
13.
Going concern
The Directors, having made
inquiries, believe that the Group has adequate resources to
continue in operational existence for at least the next 12 months
and that it is appropriate to adopt the going concern basis in
preparing these preliminary financial statements. The continued
preparation of the Group's condensed consolidated preliminary
financial statements on the going concern basis is supported by the
financial projections prepared by the Group.
In arriving at this decision to
adopt the going concern basis of accounting, the Board has
considered, among other things:
· The
Group's net profit of €1.92BN for the year ended March 31,
2024;
· The
Group's liquidity, with €4.12BN gross cash and €1.37BN net cash at
March 31, 2024, €0.26BN undrawn funds under the Group's €0.75BN
revolving credit facility and the Group's continued focus on cash
management;
· The
Group's BBB+ (stable) credit ratings from both S&P and Fitch
Ratings;
· The
Group's strong balance sheet position with its 556 owned B737 fleet unencumbered;
· The
Group's access to the debt capital markets, unsecured/secured bank
debt and sale & leaseback transactions;
· Strong
cost control across the Group;
· The
Group's fuel hedging position (approx. 70% of FY25 jet fuel
requirements were hedged at March 31, 2024); and
· The
Group's ability, as evidenced throughout the Covid-19 crisis, to
preserve cash and reduce operational and capital expenditure in a
downturn.
14. Post
balance sheet events
Subsequent to the year end, the
Board approved a €700M share buyback, which will commence later
this week.