SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
For the month of May 2005
RYANAIR HOLDINGS PLC
(Translation of registrant's name into English)
c/o Ryanair Ltd Corporate Head Office
Dublin Airport
County Dublin Ireland
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F.
Form 20-F..X.. Form 40-F.....
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange
Act of 1934.
Yes ..... No ..X..
If "Yes" is marked, indicate below the file number assigned to the registrant
in connection with Rule 12g3-2(b): 82- ________
RYANAIR CELEBRATES 20 YEARS OF OPERATIONS
AS NET PROFITS RISE 19% TO EUR268.9m
AND TRAFFIC GROWS 19% TO 27.6M
ANNOUNCES "50% OFF OUR LOWEST FARES" SEAT SALE
Ryanair, Europe's No.1 low fares airline today (Tuesday, 31 May 2005) celebrated
its 20th birthday by announcing record results for the year end 31 March 2005.
Both passenger volumes and net profits grew by 19% to 27.6m and EUR268.9m
respectively. Yields were 2% higher than last year (partially offsetting the 14%
yield decline in 2003/04) and ancillary revenues grew by 40%, much faster than
passenger volumes, which resulted in total revenues rising by 24% to EUR1.337bn.
Operating costs rose by 25%, fractionally faster than the growth in revenues
reflecting higher fuel costs. As a result, Ryanair's adjusted after tax margin
for the full year fell by just 1% to an industry leading 20% as Adjusted Net
Profit increased by 19% to a record EUR268.9m.
Summary Table of Results (Irish GAAP) - in Euro(unaudited)
Year Ended March 31, 2004 March 31, 2005 %Increase
Passengers 23.1m 27.6m +19%
Revenue EUR1.074bn EUR1.337bn +24%
Profit after tax (Note1) EUR226.6m EUR268.9m +19%
Basic EPS (Euro Cents)(Note 1) 29.91c 35.38c 18%
Note 1:Adjusted profit after tax and EPS during the year ended 31 March 2004
excludes the non-recurring costs of EUR14.9m (net of tax) arising from the
earlier than planned retirement of 6 Boeing 737-200 aircraft, the reorganisation
of "Buzz" in April '03 of EUR2.7m (net of tax), and a goodwill charge of EUR2.3m
in 2004 and EUR2.1m in 2005.
Announcing these results Ryanair's Chief Executive, Michael O'Leary, said:
"We can think of no better way to celebrate Ryanair's 20th birthday than to
announce another year of record traffic and record profits, with after tax
margins at an industry leading 20%. Our robust trading performance over the past
12 months, despite intense competition and significantly higher oil prices
reaffirms the unique strength of Ryanair's lowest cost model in Europe. While
many airlines recorded losses, Ryanair increased after tax profits for the
Winter half year by 33% from EUR51.0m to EUR67.6m, while our year end cash
balances increased to EUR1.61 billion equating to 121% of annual revenues.
"Contrary to initial expectations, average yields for the 12 months rose by 2%,
despite a 16% increase in capacity. This is partially due to the lower
comparables last year (when yields fell by 14%), and continuing capacity
reductions by the European flag carriers in markets where they compete with
Ryanair. Most of our yield growth was due to multiple fuel surcharges imposed by
the flag carriers on short-haul passengers, which have further widened the gap
between their high fares and our low fares. Ryanair's traffic growth and yields
have benefited substantially from our refusal to impose fuel surcharges.
"Clearly fuel costs remain high, and the market is volatile. Higher oil prices
will continue to impact our cost base over the coming 12 months. We are unhedged
for the remainder of this Summer and are benefiting from the recent oil price
declines. In order to remove some cost uncertainty during the volatile Winter
period, we have now hedged 75% of next Winter's fuel requirement at rates
equivalent to $47 per barrel. We will continue to exploit our hedging policy
where we believe it can remove uncertainty from our business at acceptable cost
levels.
"Our new routes and bases continue to perform well. We have been most encouraged
by the strong advance bookings at our new Luton and Liverpool bases where
passengers are looking for an alternative to Easyjet's high prices. Traffic at
our new Shannon base is also booking strongly, although yields have been
slightly lower than we expected. Recently we announced five new routes from
London to Poland (4) and Slovakia (1) and expect that these will be the first in
a series of new route announcements over the coming weeks for next Winter.
"Without question, the single most important initiative of the past 12 months
was the purchase of 140 additional Boeing 737-800's (comprising 70 firm and 70
options), for delivery during the period 2008 - 2012, at a substantial discount
to our previous competitively priced aircraft order.
This new order, which also included the repricing of the balance of the previous
order, will enable Ryanair to significantly reduce our aircraft per seat
operating costs, and substantially improve our cash balances, while we maintain
a disciplined rate of passenger growth out to 2012, by which time we expect to
carry over 70m passengers per annum, making Ryanair, Europe's largest airline.
We expect to overtake British Airways' monthly traffic later this Summer. This
will be a very significant milestone for a small Irish airline which only
started flying in 1985 and yet in just over 20 years (thanks to low fares,
lowest costs and brand new Boeing aircraft) has overtaken British Airways.
"On the regulatory front, we were pleased with the recent settlement of the fuel
levy dispute with the BAA at Stansted Airport, which will reduce the fuel levy
for all airlines at Stansted for the coming 3 years. We continue to lobby
against the BAA's grandiose plans at Stansted Airport for a gold-plated second
runway. When the cost of a runway and even a second terminal should run to no
more than GBP400m, the BAA's proposed spend of GBP4 billion is gold-plating on a
rip off scale, which will result in overcharging of ordinary passengers for many
decades into the future.
"If the BAA monopoly was broken up, and Stansted forced to compete with Gatwick
and Heathrow, then low cost efficient facilities would be developed with the
co-operation of user airlines like Ryanair and Easyjet. Instead we have the
truly bizarre proposal that GBP4 billion be wasted by Stansted, building
facilities that its airlines unanimously oppose, with part of the cost to be
subsidized by passengers at Gatwick and Heathrow (who get no benefit from
Stansted) and all of this waste is designed so that the BAA airport monopoly can
claim a return on GBP4 billion of capital expenditure instead of GBP400 million.
The CAA presently stands idly by while the BAA ignores the stated wishes of the
very airline users at Stansted who are expected to pay for these extravagant and
over specified facilities.
"In Ireland, the situation at Dublin Airport has descended into a farce. The
Dublin Airport Authority which is responsible for this third world facility is
to be rewarded for its incompetence by being allowed to build the second
terminal. This facility will not be available until 2009 at the earliest and in
the mean time passengers at Dublin will be forced to endure long queues and
intolerable overcrowding while the Government protects this failed monopoly by
blocking competition. It should be remembered that thirteen expressions of
interest to build and operate this second terminal were received by the Irish
Government as far back as October 2002, many of them from established airport
operators who were prepared to invest in and offer genuine competition at
Dublin.
"The Taoiseach (Prime Minister) recently demonstrated how hopelessly out of
touch he is by claiming that the present overcrowded terminal has the capacity
for 6 million more passengers per annum. It would appear that there aren't any
queues at the VIP escort to the Government jet. "We have instructed our lawyers
to prepare the necessary papers to oppose this second terminal on competition
and public procurement grounds. We will also vigorously oppose any planning
application which is based on over specified or inefficient terminal facilities,
which is all that the DAA have ever developed either here at Dublin, or Cork, or
Shannon. Had the Irish Government heeded Ryanair's calls for a competing second
terminal seven years ago, this current embarrassment for Irish tourism would
have been avoided. As always in Ireland the ordinary passengers suffer, while
the politicians fudge.
"Our outlook for the coming 12 months is more positive than it was this time
last year. We continue to budget for higher oil prices, but anticipate that
these higher costs will be partially offset by a slightly more benign yield
environment. If our competitors continue to maintain surcharges or continue to
remove capacity from our markets then yields should be more stable, even as we
continue to expand. Advance bookings for the Summer months are strong, and we
are raising our traffic growth forecast for the coming year from 34m (+23%) to
35m (+27%). We expect that ancillary sales will continue to significantly
outstrip traffic growth. Our new aircraft pricing and new airport deals will
continue to have a downward impact on operating costs even though fuel
volatility will remain a variable.
"It is becoming increasingly clear that being the lowest cost operator is the
key competitive advantage in our industry. There is no better business model in
the short haul market. Lowest cost wins. Like Wal-mart, Tesco and Dell in their
respective markets, Ryanair's low fares cannot be matched nor beaten by any of
our competitors. As the published statistics for punctuality, cancellations and
lost bags confirm, none of our competitors can match our customer service
either. We remain confident that Ryanair's unique combination of lowest costs,
direct flights, brand new aircraft and market leading punctuality will ensure
that the travelling public continues to fly Ryanair for the next twenty years,
just as enthusiastically as they have in our first twenty.
"To celebrate these record results, we are running a "50% off our lowest fares"
seat sale from today until midnight Thursday 2nd June for travel during the last
2 weeks in June and first 2 weeks in July." For more information, see
www.ryanair.com".
ENDS. Tuesday, 31 May 2005
For results and further information please contact:
Howard Millar,Ryanair Holdings Plc Pauline McAlester, Murray Consultants
Tel: 353-1-8121212 Tel:353-1-4980300
www.Ryanair.com
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 replacement 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, 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.
Ryanair is Europe's largest low fares airline with 229 low fare routes across 20
countries. Ryanair operates a fleet of 91 aircraft, and firm orders for up to a
further 147 new 737-800's which will be delivered over the next 7 years. Ryanair
currently employs a team of 2,700 people and expect to carry approximately 35
million scheduled passengers in the current year.
Ryanair Holdings plc and Subsidiaries
Consolidated Profit and Loss Accounts in accordance with
UK & Irish GAAP (unaudited)
Year ended Year ended
March 31,2005 March 31,2004
Operating Revenues EUR'000 EUR'000
Scheduled revenues 1,128,116 924,566
Ancillary revenues 208,470 149,658
Total operating revenues - continuing operations 1,336,586 1,074,224
Operating expenses
Staff costs 140,997 123,624
Depreciation
and amortisation 98,703 98,130
Other operating expenses
Fuel & Oil 265,276 174,991
Maintenance, materials and repairs 37,934 43,420
Marketing and distribution costs 19,622 16,141
Aircraft rentals 33,471 11,541
Route charges 135,672 110,271
Airport and Handling charges 178,384 147,221
Other 97,038 78,034
Total operating expenses 1,007,097 803,373
Operating
profit before exceptional costs, and goodwill 329,489 270,851
Aircraft rentals - (13,291)
Buzz re-organisation costs - (3,012)
Depreciation - (3,261)
Amortisation of goodwill (2,125) (2,342)
(2,125) (21,906)
Operating
profit after exceptional costs, and goodwill 327,364 248,945
Other (expenses)/income
Foreign exchange (losses)/gains (2,323) 3,217
Gain/(loss) on disposal of fixed assets 47 (9)
Interest receivable and similar income 28,342 23,891
Interest payable and similar charges (57,499) (47,564)
Total other(expenses)/income (31,433) (20,465)
Profit before taxation 295,931 228,480
Tax on profit on ordinary activities (29,190) (21,869)
Profit for the year 266,741 206,611
Earnings per ordinary share
- Basic (Euro cent) 35.10 27.28
- Diluted (Euro cent) 34.91 27.00
Adjusted earnings per ordinary share*
- Basic (Euro cent) 35.38 29.91
- Diluted (Euro cent) 35.19 29.61
Number of ordinary shares (in 000's)
- Basic 759,911 757,447
- Diluted 764,003 765,131
* Calculated on Profit for the period before exceptional costs
(net of tax), and Goodwill.
Ryanair Holdings plc and Subsidiaries
Consolidated Balance Sheets in accordance with UK & Irish GAAP (unaudited)
March 31, March 31,
2005 2004
EUR'000 EUR'000
Fixed assets
Intangible Assets 30,449 44,499
Tangible assets 2,092,283 1,576,526
Total fixed assets 2,122,732 1,621,025
Current assets
Cash and liquid resources 1,613,643 1,257,350
Accounts receivable 20,644 14,932
Other assets 24,612 19,251
Inventories 28,069 26,440
Total current assets 1,686,968 1,317,973
Total assets 3,809,700 2,938,998
Current liabilities
Accounts payable 92,118 67,936
Accrued expenses and other liabilities 436,187 338,208
Current maturities of long term debt 120,997 80,337
Short term borrowings 7,938 345
Total current liabilities 657,240 486,826
Other liabilities
Provisions for liabilities and
charges 112,745 94,192
Other creditors 18,444 30,047
Long term debt 1,293,860 872,645
Total other liabilities 1,425,049 996,884
Shareholders' funds - equity
Called - up share capital 9,675 9,643
Share premium account 565,756 560,406
Profit and loss account 1,151,980 885,239
Shareholders' funds - equity 1,727,411 1,455,288
Total liabilities and shareholders'
funds 3,809,700 2,938,998
Ryanair Holdings plc and Subsidiaries
Consolidated Cashflow Statements in
accordance with UK and Irish GAAP (unaudited)
Year ended Year ended
ended ended
March 31, March 31,
2005 2004
EUR'000 EUR'000
Net cash inflow from operating
activities 530,515 462,062
Returns on investments and servicing
of finance (26,372) (20,313)
Taxation (3,581) (2,056)
Capital expenditure (including
aircraft deposits) (616,901) (331,599)
Acquisitions including onerous lease
payments (2,218) (32,696)
Net cash (outflow)/inflow before
financing
and management of liquid resources (118,557) 75,398
Financing 467,257 122,705
(Increase) in liquid resources (316,199) (249,220)
Increase/(decrease) in cash 32,501 (51,117)
Analysis of movement in liquid resources
At beginning of year 1,231,572 982,352
Increase in year 316,199 249,220
At end of year 1,547,771 1,231,572
Analysis of movement in cash
At beginning of year 25,433 76,550
Net cash inflow/(outflow) during
year 32,501 (51,117)
At end of year 57,934 25,433
Ryanair Holdings plc and Subsidiaries
Consolidated Statement of Changes in Shareholders' Funds - Equity
in accordance with UK and Irish GAAP (unaudited)
Share Profit
Ordinary premium and loss
shares account account Total
EUR'000 EUR'000 EUR'000 EUR'000
Balance at April 1, 2004 9,643 560,406 885,239 1,455,288
Issue of ordinary equity
shares 32 5,350 - 5,382
Profit for the year - - 266,741 266,741
Balance at March 31, 2005 9,675 565,756 1,151,980 1,727,411
Reconciliation of adjusted earnings per share (unaudited)
Year Year
ended Ended
March 31, March 31,
2005 2004
EUR'000 EUR'000
Profit for the year under
UK and Irish GAAP 266,741 206,611
Adjustments
Aircraft rentals - 13,291
Depreciation - 3,261
Buzz re-organisation costs - 3,012
Amortisation of goodwill 2,125 2,342
Taxation adjustment for
above - (1,966)
Adjusted profit under UK
and Irish GAAP 268,866 226,551
Number of ordinary shares (in 000's)
- Basic 759,911 757,447
- Diluted 764,003 765,131
Adjusted earnings per ordinary share
- Basic (EUR cent) 35.38 29.91
- Diluted (EUR cent) 35.19 29.61
Ryanair Holdings plc and Subsidiaries
Consolidated Profit and Loss Accounts in accordance with US GAAP (unaudited)
Year ended Year ended
March 31, March 31,
2005 2004
EUR'000 EUR'000
Operating Revenues
Scheduled revenues 1,128,116 924,566
Ancillary revenues 208,470 149,658
Total operating revenues - continuing operations 1,336,586 1,074,224
Operating expenses
Staff costs 141,499 123,535
Depreciation and amortisation 101,103 98,130
Other operating expenses
Fuel & Oil 265,276 174,991
Maintenance, materials and repairs 37,934 43,420
Marketing and distribution costs 19,622 16,141
Aircraft rentals 33,471 11,541
Route charges 135,672 110,271
Airport and Handling charges 178,384 147,221
Other 96,950 77,946
Total operating expenses 1,009,911 803,196
Operating
profit before exceptional items 326,675 271,028
Purchase Accounting Adjustment 11,925 -
Aircraft retirement costs - (16,552)
Buzz re-organisation costs - (3,012)
Operating profit after exceptional items 338,600 251,464
Other (expenses)/income
Foreign exchange (losses)/gains (2,323) 3,217
Gain/(loss) on disposal of fixed assets 47 (9)
Interest receivable and similar income 28,342 23,891
Interest payable and similar charges (49,654) (40,351)
Total other (expenses)/income (23,588) (13,252)
Income before taxation 315,012 238,212
Taxation (31,598) (22,782)
Net income 283,414 215,430
Net income per ADS
- Basic (Euro cent) 186.48 142.21
- Diluted (Euro cent) 185.48 140.78
Adjusted net income per ADS *
- Basic (Euro cent) 179.61 153.82
- Diluted (Euro cent) 178.65 152.28
Weighted Average number of shares
- Basic 759,911 757,447
- Diluted 764,003 765,131
* Calculated on Net Income before non-recurring items (net of tax).
(5 ordinary shares equal 1 ADR)
Ryanair Holdings plc and Subsidiaries
Summary of significant differences between UK, Irish
& US generally accepted accounting principles
(unaudited)
(A) Net income under US GAAP
Year ended
March 31, March 31,
2005 2004
EUR'000 EUR'000
Profit as reported in the consolidated
profit and loss accounts in accordance with UK
and Irish GAAP 266,741 206,611
Adjustments
Pension (502) 89
Purchase Accounting
Adjustment 11,925 -
Amortisation of
goodwill 2,125 2,342
Capitalised interest (net of amortisation)
regarding aircraft
acquisition programme 5,445 7,213
Darley Investments
Limited 88 88
Taxation- effect of
above adjustments (2,408) (913)
Net income under US
GAAP 283,414 215,430
(B) Consolidated Cashflow Statements in accordance with US GAAP
March 31, March 31,
2005 2004
EUR'000 EUR'000
Cash inflow from
operating activities 500,562 439,694
Cash (outflow) from
investing activities (839,821) (354,299)
Cash inflow from
financing activities 474,850 121,734
Increase in cash and
cash equivalents 135,591 207,129
Cash and cash
equivalents at
beginning of year 744,605 537,476
Cash and cash
equivalents at end of year 880,196 744,605
Cash and cash
equivalents under US GAAP 880,196 744,605
Restricted cash 204,040 200,000
Deposits with a
maturity of between
three and six months 529,407 312,745
Cash and liquid resources under UK and Irish GAAP 1,613,643 1,257,350
Ryanair Holdings plc and Subsidiaries
Summary of significant differences between UK,
Irish and US generally accepted accounting
principles (unaudited)
(C) Shareholders' funds - equity
March 31, March 31,
2005 2004
EUR'000 EUR'000
Shareholders' equity as reported in the
consolidated balance
sheets (UK and Irish GAAP) 1,727,411 1,455,288
Adjustments:
Pension 2,698 3,200
Purchase Accounting
Adjustment 11,925 -
Amortisation of goodwill 4,467 2,342
Capitalised interest
(net of amortisation) regarding aircraft
acquisition programme 22,947 17,502
Darley Investments Limited (63) (151)
Minimum pension liability (net of tax) (6,496) (2,631)
Unrealised losses on
derivative financial
instruments (net of tax) (128,074) (116,681)
Tax effect of adjustments
(excluding pension & derivative adjustments) (4,996) (2,588)
Shareholders' equity as adjusted to accord
with US GAAP 1,629,819 1,356,281
Opening shareholders'
equity under US GAAP 1,356,281 1,177,187
Comprehensive Income
Minimum pension liability (net of tax) (3,865) 25
Unrealised (losses) on derivative
financial instruments (net of tax) (11,393) (43,310)
Net income in
accordance with US GAAP 283,414 215,430
Total Comprehensive Income 268,156 172,145
Stock issued for cash 5,382 6,949
Closing shareholders'
equity under US GAAP 1,629,819 1,356,281
Ryanair Holdings plc
Management Discussion and Analysis of Results
Introduction
For the purposes of the MD&A all figures and comments are by reference to the
adjusted profit and loss account excluding the exceptional costs and goodwill
referred to below.
Exceptional costs in the year ended March 31,2004 consisted of re-organisation
costs of EUR2.7m (net of tax), EUR11.6m in lease costs (net of tax), and an
additional depreciation charge of EUR3.3m relating to an adjustment to the
residual value of six Boeing 737-200 aircraft that were retired earlier than
planned (Note 4). Goodwill of EUR2.1m was amortised in this financial year
compared to EUR2.3m in the year ended March 31, 2004.
Profit after tax increased by 29% to EUR266.7m compared to EUR206.6m in the
previous year ended March 31,2004. The adjusted profit for the year, excluding
exceptional costs and goodwill, increased by 19% to EUR268.9m.
Summary Year ended March 31, 2005
Profit after tax increased by 19% to EUR268.9m, compared to EUR226.6m in the
previous year ended March 31, 2004. Total operating revenues increased by 24% to
EUR1,336.6m, which was faster than the 19% growth in passenger volumes, as
average fares rose by 2% and ancillary revenues grew by 39% to EUR208.5m. Total
revenue per passenger as a result increased by 4%, whilst the successful launch
of new routes and the slower rate of growth in turn led to load factors
increasing by 3 points to 84%.
Total operating expenses increased by 25% to EUR1,007.1m, due to the increased
level of activity, and the increased costs, primarily fuel, route charges and
airport & handling costs associated with the growth of the airline. Fuel, our
largest cost item, increased by 52% due to substantial increases in the US$ cost
per gallon, partially offset by the strengthening of the Euro to the US dollar.
Despite the sharp rise in fuel costs Operating margins have been maintained at
25%, which in turn resulted in Operating profit increasing by 22% to EUR329.5m.
Profit before tax increased by 19%, less than the increase in operating profit
due to the higher net interest charge arising from the increased level of debt,
and foreign exchange losses which arose from the translation of sterling and US$
bank balances to euro at the year end exchange rates. Net Margins have declined
by 1 point to 20% for the reasons outlined above.
Adjusted earnings per share have increased by 18% to 35.4 cent for the year.
Balance Sheet
The Company's profit growth continues to generate strong cashflow from
operations, which for the year to March 31, 2005 amounted to EUR530.5m. This
cashflow part funded the extensive aircraft delivery programme, additional
aircraft deposits, whilst the balance remaining is reflected in the EUR356.3m
increase in Cash and Liquid Resources since March 31, 2004. Capital expenditure
net of sales proceeds amounted to EUR616.9m during the year whilst Long Term
Debt, net of repayments, increased by EUR461.9m. Shareholders' Funds at March
31, 2005 have increased by EUR272.2m to EUR1,727.4m, compared to March 31, 2004.
Detailed Discussion and Analysis Year ended March 31, 2005
Profit after tax, increased by 19% to EUR268.9m due to a 2% increase in average
fares, and strong ancillary revenue growth which was partly offset by fuel costs
increasing by 52% reflecting the higher US$ cost per gallon. Operating margins
have remained constant at 25%, which has resulted in Operating profit increasing
by EUR58.6m to EUR329.5m compared to last year.
Total operating revenues increased by 24% to EUR1,336.6m whilst passenger
volumes increased by 19% to 27.6m. Total revenue per passenger has increased by
4% in the year due to a combination of higher average fares and strong ancillary
revenue growth.
Scheduled passenger revenues increased by 22% to EUR1,128.1m due to a
combination of a 2% improvement in average fares, increased passenger volumes on
existing routes, and the successful launch of new bases at Rome-Ciampino, and
Barcelona-Girona. The slower growth in passenger volumes is also reflected in
improved load factors, which rose by 3 points to 84% in the year.
Ancillary revenues increased by 39% to EUR208.5m, faster than the growth in
passenger volumes, reflecting a strong performance in non-flight scheduled
revenues, car hire and other ancillary products. Ancillary revenues now account
for 16% of total revenues compared to 14% for 2004.
Total operating expenses increased by 25% to EUR1,007.1m due to the increased
level of activity, and the increased costs primarily fuel, aircraft rentals,
route charges, and airport and handling costs associated with the growth of the
airline. Total operating costs were also adversely impacted by a 10% increase in
the average sector length whilst higher US$ fuel prices were partly offset by
the strength of the euro exchange rate against the US$.
Staff costs have increased by 14% to EUR141.0m primarily due to a 14% increase
in average employee numbers to 2,604 and the impact of pay increases of 3%
granted during the year partly offset by savings in sterling denominated
salaries due to the weakening of the sterling to euro exchange rate.
Depreciation and amortisation increased by 1% to EUR98.7m. Depreciation charges
increased due to an increase in the size of the 'owned' fleet from 62 to 74,
offset by lower amortisation charges due to the retirement of 737-200 aircraft
and the positive impact of a new engine maintenance agreement on the cost of
amortisation of 737-800 aircraft. The strengthening of the euro to US$ during
the year also had a positive impact on the depreciation and amortisation charge
relating to new aircraft deliveries.
Fuel costs rose by 52% to EUR265.3m due to an increase in the number of sectors
flown, a 10% increase in the average sector length, and a significantly higher
average US$ cost per gallon of fuel partially offset by the positive impact of
the strengthening of the Euro to the US dollar during the year.
Maintenance costs decreased by 13% to EUR37.9m reflecting the improved
reliability arising from the higher proportion of 737-800's operated and a lower
level of maintenance costs incurred due to the return of four BAE 146 aircraft
to KLM and the release of maintenance overhaul provisions of EUR5.2m during the
year associated with the earlier than scheduled return of six leased 737-300's.
Marketing and distribution costs increased by 22% to EUR19.6m due to increases
in expenditure arising from the higher level of activity during the year.
Aircraft rental costs increased by EUR21.9m to EUR33.5m reflecting the full year
cost of leasing 10 737-800 aircraft plus the lease costs associated with three
deliveries during the third quarter. These costs were offset by the return of
four BAE 146s and six leased 737-300 aircraft to KLM and ILFC respectively
during the year.
Route charges increased by 23% to EUR135.7m due to an increase in the number
sectors flown, an increase in the average sector length and an increase in the
weight of the aircraft operated (which incur a higher charge).
Airport and handling charges increased by 21% to EUR178.4m, due to an increase
in the number of passenger flown, and the impact of increased costs at certain
existing airports offset by lower costs at new airports.
Other expenses increased by 24% to EUR97.0m, which is less than the growth in
ancillary revenues due to improved margins on some new and existing products,
and cost reductions achieved on indirect costs.
Operating margins have remained constant at 25% due to the reasons outlined
above whilst operating profits increased by EUR58.6m to EUR329.9m during the
year.
Interest receivable has increased by EUR4.4m due to the combined impact of
higher levels of cash and liquid resources and an improvement in average deposit
interest rates earned in the year compared to last year. Interest payable
increased by EUR9.9m due to the drawdown of debt to part fund the purchase of
new aircraft.
Foreign exchange gains/(losses) has changed from a gain of EUR3.2m to a loss of
EUR2.3m in the current year due to the negative impact of changes in the
sterling exchange rate against the euro.
The Company's Balance Sheet continues to strengthen due to the growth in profits
during the year. The Company generated cash from operating activities of
EUR530.5m, which part funded additional capital expenditure of EUR616.9m.
Capital expenditure primarily comprised of the delivery of 24 aircraft and
advance payments for future aircraft deliveries. Long term Debt, net of
repayments increased by EUR461.9m, which was drawn down to part fund aircraft
deliveries during the year. Cash and liquid resources continued to reflect the
strong trading performance of the company during the year and at March 31, 2005
stood at EUR1,613.6m compared to EUR1,257.4 at March 31, 2004.
Shareholders' Funds at March 31, 2005 have increased to EUR1,727.4m compared to
EUR1,455.3m at March 31, 2004.
Notes to the Financial Statements
1. Accounting Policies
The accounting policies followed in the preparation of these consolidated
financial statements for the year ended March 31, 2005 are consistent with those
set out in the financial statements for the year ended March 31, 2004.
2. Approval of the Preliminary Announcement
The Board of Directors approved the preliminary announcement document, which
will form the basis of the Group's consolidated financial statements for the
year ended March 31, 2005 on May 27, 2005.
3. Generally Accepted Accounting Policies
The Management Discussion and Analysis of Results for the year ended March 31,
2005 are based on the results reported under Irish and UK GAAP.
4. Aircraft retirement costs
Six aircraft were retired earlier than projected in 2003 due to the detection of
scratch marks ('scribing') that occurred during an aircraft painting programme
on these aircraft in 1995. It had been determined that the cost of repairing
these aircraft was uneconomic due to the short remaining life of the aircraft.
Accordingly the Company had determined that the residual value of US$1m
(EUR794k) for these aircraft was excessive and as a result reduced it to EUR250k
per aircraft. The cost of this adjustment charge for five aircraft was reflected
in the results for the quarter ended September 30,2003, and the charge for a
sixth aircraft was expensed in quarter ended December 31, 2003.
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.
RYANAIR HOLDINGS PLC
Date: 31 May 2005
By:___/s/ Howard Millar____
H Millar
Company Secretary & Finance Director