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Ryanair Holdings PLC (RYA)

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Monday 01 February, 2021

Ryanair Holdings PLC

3rd Quarter Results

RNS Number : 4564N
Ryanair Holdings PLC
01 February 2021
 

 

  RYANAIR REPORTS Q3 LOSS OF €306M AS TRAFFIC FALLS 78%

 

Ryanair Holdings plc today (1 Feb.) reported a Q3 loss of €306m, compared to a PY Q3 profit of €88m. Features of this 3-month period to 31 Dec. included:

 

· Q3 traffic fell from 36m to 8m (-78%).

· €3.5bn cash at quarter end (31 Dec.).

· Cost reduction & liquidity management continues at all Group airlines.

· Stansted low-cost growth deal extended by 4 years to 2028 - easyJet based slots secured.

· CDP awards Ryanair a strong (first time) B- climate protection score.

· Ryanair restricts non-EU shareholder voting rights post Brexit.

· Firm Order for 75x B737-8200 aircraft (pipeline of 210 firm aircraft).

 

Q3 (IFRS) - Group

31 Dec. 2019

31 Dec. 2020

Change

Customers

35.9m

8.1m

-78%

Load Factor

96%

70%

-26pts

Revenue

€1.91bn

€0.34bn

-82%

Op. Costs

€1.81bn

€0.67bn

-63%

PAT/(Net Loss)

€88m

(€306m)*

n/m

* excl. €15m except. hedge ineffectiveness charge.

 

COVID-19:

Covid-19 continues to wreak havoc across the industry.  Christmas & New Year traffic was severely impacted by UK travel bans imposed at short notice by many EU Govts on 19 & 20 Dec.  These flight bans, and travel restrictions, saw the Group's Dec. traffic fall by 83% to just 1.9m passengers.  As announced on 7 Jan., Ryanair expects the latest lockdowns and pre-arrival Covid test requirement to materially reduce flight schedules and traffic through to Easter.  The Group's full-year (FY21) traffic forecast was therefore reduced to "between 26m to 30m" passengers.

 

The Covid pandemic has caused the closure of EU airlines including Flybe, Germanwings, Level and Montenegro Airlines.  Norwegian has already entered a creditor protection examinership and Eurocontrol predicts more EU airline failures in 2021.  Significant capacity reductions have been implemented by many EU airlines and a flood of unlawful State Aid has been committed by EU Govts to their flag carriers including Alitalia, Air France/KLM, LOT, Lufthansa, SAS, TAP and others.  This illegal State Aid distorts competition and the level playing field across EU aviation.  We expect intra-European capacity to be significantly reduced for the next few years, which will create growth opportunities for Ryanair (Europe's lowest cost airline) to take advantage of recovery growth incentives, as it takes delivery of 210 new (lower cost) Boeing 737s.  As soon as the Covid-19 virus recedes - and it will over the coming months as EU Govts accelerate vaccine rollouts - Ryanair and its partner airports will rapidly restore schedules, recover lost traffic, help the nations of Europe to reboot their tourism industry, and create jobs for young people across the cities and beaches of the EU.  We take some comfort from the success of the UK vaccine programme which is on target to vaccinate almost 50% of the UK population (30m) by the end of March.  The EU now needs to step up the slow pace of its rollout programme to match the UK's performance.

 

Q3 BUSINESS REVIEW:

 

Revenue & Costs

Q3 revenue fell by 82% to €0.34bn as traffic shrank by 78% to 8.1m.  Ancillary revenue delivered a solid performance as more guests chose priority boarding and reserved seating. Q3 cost performance was strong, falling 63% thanks to the measures implemented over the past nine months.  Due to ongoing travel restrictions, reduced Q4 traffic and a revised aircraft delivery schedule, the Group recorded a €15m exceptional ineffectiveness charge on fuel and currency hedges in Q3.

 

The Group airlines continue to implement cost reductions.  In Dec., Ryanair increased its firm order for the B737-8200 "Gamechanger" aircraft by 75 to 210 aircraft.  These environmentally friendly aircraft have 4% more seats, but burn 16% less fuel and lower noise emissions by 40%. This winter, Group airlines are returning 14 older B737 aircraft to lessors as leases mature and Ryanair has recently concluded the delivery of 7 older B737NGs (pre-sold in 2019) for cargo conversion.  Our Route Development teams are working with multiple airport partners on recovery/growth incentives.  During Q3 the Group announced a 2 aircraft base in Paris Beauvais, added a fourth aircraft to its Naples base for S.21, announced a 4 aircraft base in Venice Treviso and increased its route network/frequencies to Venice Marco Polo, Verona and Bari.  The Group also confirmed the reopening of its Shannon (Ireland) base for S.21.

 

Recently, Ryanair concluded a 4-year extension of its low-cost growth deal in Stansted to 2028, extending the Groups low cost leadership in the key London market. The Group has also secured easyJet's 7 based aircraft slot portfolio in Stansted. To facilitate a ramp-up of S.21 operations, Ryanair is accelerating cabin crew training which will increase staff costs in Q4.  This investment, however, will ensure that Group airlines are well placed to take up traffic recovery opportunities that arise throughout S.21 and beyond. 

 

Balance Sheet & Liquidity

Ryanair's balance sheet remains one of the strongest in the industry with a BBB credit rating (S&P and Fitch) and €3.5bn cash at 31 Dec. Approx. 80% of the Group's owned fleet is unencumbered (with a book value of over €7bn). Since Mar. 2020, the Group has lowered cash burn by cutting costs, participating in EU Govt payroll support schemes, cancelling share buybacks and deferring non-essential capex.  Following its successful fund raising (€400m share placing & €850m eurobond) in Sept., the Group is well financed as it takes delivery of its first B737-8200 aircraft in Q4 and plans to repay over €1.5bn maturing debt in the next 6-months (incl. CCFF £600m in Mar. & €850m bond in Jun. 2021).

 

THE ENVIRONMENT:

Ryanair recently received a (first time) B- climate protection rating from CDP, making it one of the highest rated airlines in the world.  While this is a strong inaugural rating, highlighting Ryanair's excellent environmental performance and very strong governance, the Group is committed to improving this score.  The new B737-8200s with 4% more seats, 16% lower fuel burn and 40% lower noise emissions will help Ryanair to lower its CO₂ and noise footprint and deliver on its target of being carbon neutral by 2050.  Ryanair airlines remain committed to eliminating non-recyclable plastic from our operations within 5-years and already over 80% of consumables onboard our flights are plastic free.

 

BREXIT:

Following the UK/EU Brexit trade agreement in late Dec., Ryanair implemented the measures necessary to remain majority EU owned and controlled to protect its EU airline licences. Ryanair has (as previously advised) restricted voting rights of non-EU shareholders from 1 Jan. The Group also received shareholder approval at its Dec. EGM to replace CREST with a system operated by Euroclear Bank for the electronic settlement of trading in Ryanair's ordinary shares.  The migration of Ryanair's ordinary shares to Euroclear will take place as part of a wider market migration of listed Irish companies shares at a date determined by Euronext Dublin - currently expected to be on or around 15 Mar. 2021.

 

BOEING MAX UPDATE:

In Dec., shortly after the FAAs ungrounding of the Boeing MAX aircraft in the U.S., Ryanair ordered a further 75x B737-8200 aircraft from Boeing increasing its firm order to 210 units.  Following EASAs recent certification of the MAX-8 to return to flying in Europe, we are hopeful that the B737-8200 will be certified in the coming weeks.  This will enable the Group to take delivery of up to 24 new aircraft before peak S.21. This order will deliver over a 4 year period between Spring 2021 and Dec. 2024 (FY25), facilitating traffic growth to 200m p.a. by FY26.  The B737-8200 aircraft is a "Gamechanger" for Ryanair's customers and Europe's consumers.  This aircraft, when delivered, will be the most audited, most regulated in aviation history.  With an exceptional environmental performance, this 197 seat Boeing aircraft is the perfect sized platform to allow Ryanair expand and grow its low fare services across Europe over the next decade while widening Ryanair's unit cost leadership over all of our European airline competitors.

 

OUTLOOK:

FY21 will continue to be the most challenging year in Ryanair's 35 year history.  Recently announced Covid lockdowns and travel restrictions across the EU & UK will reduce forecast FY21 traffic to between 26m and 30m (previously "up to 35m"), with more risk towards the lower end of the range.  While Q4 visibility remains limited due to uncertain and constantly changing Covid-19 travel restrictions, European Govt lockdowns, the timing of the rollout of vaccines across the EU and a very close-in booking curve, we are cautiously guiding an FY21 net loss (pre-exceptional items) of between €850m and €950m.

 

As we look beyond the Covid-19 crisis, and vaccinations roll out, the Ryanair Group expects to have a much lower cost base and a strong balance sheet, which will enable it to fund lower fares and add lower cost aircraft to capitalise on the many growth opportunities that will be available in all markets across Europe, especially where competitor airlines have substantially cut capacity or failed. We will work assiduously with our airport and Govt partners to restore routes and recover traffic for the benefit of our airports, our customers and our people as we try to prioritise the jobs and salary recovery of our people.

 

ENDS

For further information

please contact:

www.ryanair.com

Neil Sorahan

Ryanair Holdings plc

Tel: +353-1-9451212

Piaras Kelly

Edelman

Tel: +353-1-5921330

 

Ryanair Holdings plc, Europe's largest airline group, is the parent company of Buzz, Lauda, Malta Air & Ryanair. Carrying 149m guests p.a. (pre Covid-19) on more than 2,100 daily flights from 77 bases, the Group connects over 240 destinations in 40 countries on a fleet of 460 aircraft, with a further 210 Boeing 737s on order, which will enable the Ryanair Group to lower fares and grow traffic to 200m p.a. over the next 4 or 5 years. Ryanair has a team of over 16,000 highly skilled aviation professionals delivering Europe's No.1 on-time performance, and an industry leading 35-year safety record. Ryanair is Europe's greenest cleanest airline group and customers switching to fly Ryanair can reduce their CO₂ emissions by up to 50% compared to the other Big 4 European major airlines.

 

 

Certain of the information included in this release is forward looking and is subject to important risks and uncertainties that could cause actual results to differ materially.  It is not reasonably possible to itemise all of the many factors and specific events that could affect the outlook and results of an airline operating in the European economy.  Among the factors that are subject to change and could significantly impact Ryanair's expected results are the airline pricing environment, fuel costs, competition from new and existing carriers, market prices for the replacement of aircraft, costs associated with environmental, safety and security measures, actions of the Irish, U.K., European Union ("EU") and other governments and their respective regulatory agencies, uncertainties surrounding Brexit, 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 December 31, 2020 (unaudited)

 

 

 

At Dec 31,

At Mar 31, 

 

 

 

2020

2020

 

 

 Note

 M

 M

 

Non-current assets

 

 

 

 

Property, plant and equipment

10

8,553.7

9,438.0

 

Right of use assets

 

205.3

236.8

 

Intangible assets

 

146.4

146.4

 

Deferred Tax

 

10.7

53.6

 

Derivative financial instruments

13

67.3

378.5

 

Total non-current assets

 

8,983.4

10,253.3

 

 

 

 

 

 

Current assets

 

 

 

 

Inventories

 

3.6

3.3

 

Other assets

 

127.1

178.7

 

Current tax

 

-

44.5

 

Assets held for sale

11

98.7

 

Trade receivables

 

34.7

67.5

 

Derivative financial instruments

13

43.2

293.2

 

Restricted cash

 

34.1

34.4

 

Financial assets: cash > 3 months

 

1,048.3

1,207.2

 

Cash and cash equivalents

 

2,407.7

2,566.4

 

Total current assets

 

3,698.7

4,493.9

 

 

 

 

 

 

Total assets

 

12,682.1

14,747.2

 

 

 

 

 

 

Current liabilities

 

 

 

 

Provisions

 

13.4

43.3

 

Trade payables

14

304.7

1,368.2

 

Accrued expenses and other liabilities

 

1,265.2

2,589.4

 

Current lease liability

 

54.7

75.0

 

Current maturities of debt

 

1,855.8

382.3

 

Derivative financial instruments

13

319.2

1,050.0

 

Current tax

 

64.9

-

 

Total current liabilities

 

3,877.9

5,508.2

 

 

 

 

 

 

Non-current liabilities

 

 

 

 

Provisions

 

33.8

36.6

 

Derivative financial instruments

13

51.1

180.5

 

Deferred tax

 

244.8

353.5

 

Trade payables

14

206.5

-

 

Non-current lease liability

 

136.3

170.9

 

  Non-current maturities of debt

 

3,460.3

3,583.0

 

Total non-current liabilities

 

4,132.8

4,324.5

 

 

 

 

 

 

Shareholders' equity

 

 

 

 

Issued share capital

15

6.7

6.5

 

Share premium account

15

1,157.7

738.5

 

Other undenominated capital

15

3.5

3.5

 

Retained earnings

15

3,515.3

4,245.0

 

  Other reserves

 

(11.8)

(79.0)

 

Shareholders' equity

  

4,671.4

4,914.5

 

 

 

 

 

 

Total liabilities and shareholders' equity

 

12,682.1

14,747.2

      

 

Ryanair Holdings plc and Subsidiaries

Condensed Consolidated Interim Income Statement for the Quarter ended December 31, 2020 (unaudited)

 

 

 

 

Pre-
Except.

Except.
Items

IFRS

IFRS

 

 

 

Q3 Dec 31,

Q3 Dec 31,

Q3 Dec 31,

Q3 Dec 31,

 

 

Change

2020

2020

2020

2019

 

 Note

%

 M

 M

 M

 M

Operating revenues

 

 

 

 

 

 

Scheduled revenues

 

-85%

177.3

-

177.3

1,186.0

Ancillary revenues

 

-77%

163.9

-

163.9

720.0

Total operating revenues

 

-82%

341.2

-

341.2

1,906.0

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

Fuel and oil

 

+78%

152.4

-

152.4

686.0

Depreciation

 

+25%

142.9

-

142.9

190.4

Staff costs

 

+53%

129.1

-

129.1

276.5

Airport and handling charges

 

+69%

84.4

-

84.4

272.7

Route charges

 

+69%

55.7

-

55.7

180.4

Marketing, distribution and other

 

+63%

51.0

-

51.0

137.4

Maintenance, materials and repairs

 

+11%

56.7

-

56.7

63.7

Aircraft rentals

 

+82%

1.4

-

1.4

7.6

Total operating expenses

 

+63%

673.6

-

673.6

1,814.7

 

 

 

 

 

 

 

Operating (loss)/profit

 

 

(332.4)

-

(332.4)

91.3

 

 

 

 

 

 

 

Other income/(expense)

 

 

 

 

 

 

Net finance expense

 

-10%

(12.4)

-

(12.4)

(11.3)

Hedge Ineffectiveness/foreign exchange translation

 

 

-

(17.7)

(17.7)

1.6

Total other income/(expenses)

 

-27%

(12.4)

(17.7)

(30.1)

(9.7)

 

 

 

 

 

 

 

(Loss)/profit before tax

 

 

(344.8)

(17.7)

(362.5)

81.6

Tax credit on (loss)/profit

4

 

39.3

2.4

41.7

6.2

(Loss)/profit for the quarter - all attributable to equity holders of parent

 

 

(305.5)

(15.3)

(320.8)

87.8

 

 

 

 

 

 

 

(Loss)/earnings per ordinary share (€)

 

 

 

 

 

 

Basic

9

 

 

 

(0.2849)

0.0791

Diluted

9

 

 

 

(0.2849)

0.0784

Weighted ave. no. of ord. shares (in Ms)

 

 

 

 

 

 

Basic

9

 

 

 

1,126.2

1,109.6

Diluted

9

 

 

 

1,126.2

1,119.2

 

 

*'+' is favourable and '-' is adverse year-on-year.

 

Ryanair Holdings plc and Subsidiaries

Condensed Consolidated Interim Income Statement for the nine months ended December 31, 2020 (unaudited)

 

 

 

 

 

Pre-
Except.

Except.
Items

IFRS

IFRS

 

 

 

9 Months Ended

9 Months Ended

9 Months Ended

9 Months Ended

 

 

 

Dec 31,

Dec 31,

Dec 31,

Dec 31,

 

 

Change

2020

2020

2020

2019

 

 Note

%

 M

 M

 M

 M

Operating revenues

 

 

 

 

 

 

Scheduled revenues

 

-80%

968.1

-

968.1

4,921.0

Ancillary revenues

 

-77%

549.3

-

549.3

2,374.7

Total operating revenues

 

-79%

1,517.4

-

1,517.4

7,295.7

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

Fuel and oil

 

+78%

495.4

-

495.4

2,272.9

Depreciation

 

+23%

439.4

-

439.4

571.5

Staff costs

 

+58%

363.7

-

363.7

859.9

Airport and handling charges

 

+73%

254.1

-

254.1

932.9

Route charges

 

+72%

171.0

-

171.0

606.4

Marketing, distribution and other

 

+64%

157.4

-

157.4

436.5

Maintenance, materials and repairs

 

+31%

139.3

-

139.3

200.9

Aircraft rentals

 

+82%

6.2

-

6.2

35.1

Total operating expenses

 

+66%

2,026.5

-

2,026.5

5,916.1

 

 

 

 

 

 

 

Operating (Loss)/profit

 

 

(509.1)

-

(509.1)

1,379.6

 

 

 

 

 

 

 

Other income/(expense)

 

 

 

 

 

 

Net finance expense

 

+27%

(27.8)

-

(27.8)

(38.0)

Hedge Ineffectiveness/foreign exchange translation

 

-

(257.9)

(257.9)

(0.6)

Total other income/(expense)

 

+28%

(27.8)

(257.9)

(285.7)

(38.6)

 

 

 

 

 

 

 

(Loss)/profit before tax

 

 

(536.9)

(257.9)

(794.8)

1,341.0

Tax credit/(expense) on (loss)/profit

4

 

34.9

28.6

63.5

(100.6)

(Loss)/profit for the nine months - all attributable to equity holders of parent

 

 

(502.0)

(229.3)

(731.3)

1,240.4

 

 

 

 

 

 

 

(Loss)/earnings per ordinary share (€)

 

 

 

 

 

 

Basic

9

 

 

 

(0.6619)

1.1077

Diluted

9

 

 

 

(0.6619)

1.1026

Weighted ave. no. of ord. shares (in Ms)

 

 

 

 

 

 

Basic

9

 

 

 

1,104.8

1,119.8

Diluted

9

 

 

 

1,104.8

1,125.0

 

*'+' is favourable and '-' is adverse year-on-year.

 

Ryanair Holdings plc and Subsidiaries

Condensed Consolidated Interim Statement of Comprehensive Income for the quarter ended

December 31, 2020 (unaudited )

 

 

Quarter

Quarter

 

Ended

Ended

 

Dec 31,

Dec 31,

 

2020

2019

 

€M

€M

 

 

 

(Loss)/profit for the quarter

(320.8)

87.8

 

 

 

Other comprehensive income:

 

 

 

 

 

Items that are or may be reclassified to profit or loss:

 

 

Movements in hedging reserve, net of tax:

 

 

Net movements in cash-flow hedge reserve

134.6

(51.7)

 

 

 

Other comprehensive income/(loss) for the quarter, net of income tax

134.6

(51.7)

Total comprehensive (loss)/income for the quarter - all attributable to equity holders of parent

(186.2)

36.1

 

 

Ryanair Holdings plc and Subsidiaries

Condensed Consolidated Interim Statement of Comprehensive Income for the nine months ended

December 31, 2020 (unaudited )

 

 

9 Months

9 Months

 

 Ended

Ended

 

Dec 31,

Dec 31,

 

2020

2019

 

€M

€M

 

 

 

(Loss)/profit for the nine months

(731.3)

1,240.4

 

 

 

Other comprehensive income:

 

 

 

 

 

Items that are or may be reclassified to profit or loss:

 

 

Movements in hedging reserve, net of tax:

 

 

Net movements in cash-flow hedge reserve

68.0

164.8

 

 

 

Other comprehensive income for the nine months, net of income tax

68.0

164.8

Total comprehensive (loss)/income for the nine months - all attributable to equity holders of parent

(663.3)

1,405.2

 

Ryanair Holdings plc and Subsidiaries

Condensed Consolidated Interim Statement of Cash Flows for the nine months ended December 31, 2020 (unaudited) 

 

 

 

9 Months

9 Months

 

 

 Ended

Ended

 

 

Dec 31,

Dec 31,

 

 

2020

2019

 

 

 

Restated*

 

Note

 M

 M

Operating activities

 

 

 

(Loss)/profit after tax

 

(731.3)

1,240.4

 

 

 

 

Adjustments to reconcile (loss)/profit after tax to net cash from operating activities

 

 

 

Depreciation

 

439.4

571.5

Increase in inventories

 

(0.3)

(2.2)

Tax (credit)/expense on (loss)/profit

 

(63.5)

100.6

Share-based payments

 

3.1

5.9

Decrease/(increase) in trade receivables

 

31.7

(15.1)

Decrease/(increase) in other assets

 

44.9

(58.1)

(Decrease)/increase in trade payables

 

(268.8)

95.5

(Decrease) in accrued expenses

 

(1,309.7)

(1,029.6)

(Decrease) in provisions

 

(32.7)

(26.6)

Decrease/(increase) in finance income

 

6.7

(0.3)

(Decrease)/increase in finance expense

 

(25.4)

4.8

Hedge ineffectiveness

 

(230.1)

-

Income tax refunded/(paid)

 

81.4

(75.3)

Net cash inflow/(outflow) from operating activities

 

(2,054.6)

811.5

 

 

 

 

Investing activities

 

 

 

Capital expenditure - purchase of property, plant and equipment

net of supplier proceeds

10

114.0

(442.6)

Decrease in restricted cash

 

0.3

0.5

Decrease in financial assets: cash > 3 months

 

158.9

63.4

Net cash arising from/(used in) investing activities

 

273.2

(378.7)

 

 

 

 

Financing activities

 

 

 

Shareholder returns (net of tax)

 

-

(371.5)

Net proceeds from shares issued

15

417.1

12.0

Finance raised

 

1,533.4

750.0

Repayments of long term borrowings

 

(171.9)

(296.4)

Lease liabilities paid

 

(61.2)

(45.9)

Net cash from financing activities

 

1,717.4

48.2

 

 

 

 

(Decrease)/increase in cash and cash equivalents

 

(64.0)

481.0

Net foreign exchange differences

 

(94.7)

-

Cash and cash equivalents at beginning of the period

 

2,566.4

1,675.6

Cash and cash equivalents at end of the period

 

2,407.7

2,156.6

 

*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 the nine months ended December 31, 2020 (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

Issued

Share

 

Other

Other

 

 

 

Ordinary

Share

Premium

Retained

Undenom.

Reserves

Other

 

 

Shares

Capital

Account

Earnings

Capital

Hedging

Reserves

Total

 

M

€M

€M

€M

€M

€M

€M

€M

Balance at March 31, 2019

1,133.4

6.8

719.4

4,181.9

3.2

274.6

29.0

5,214.9

Adjustment on initial application of IFRS 16

-

-

-

(9.7)

-

-

-

(9.7)

Adj. balance at March 31, 2019

1,133.4

6.8

719.4

4,172.2

3.2

274.6

29.0

5,205.2

Profit for the nine months

-

-

-

1,240.4

-

-

-

1,240.4

Other comprehensive income

 

 

 

 

 

 

 

-

Net movements in cash-flow reserve

-

-

-

-

-

164.8

-

164.8

Total other comprehensive income

-

-

-

-

-

164.8

-

164.8

Total comprehensive income

-

-

-

1,240.4

-

164.8

-

1,405.2

Transactions with owners of the
Company recognized directly in equity

 

 

 

 

 

 

 

 

Issue of ordinary equity shares

1.9

-

12.0

-

-

-

-

12.0

Share-based payments

-

-

-

-

-

-

5.9

5.9

Repurchase of ordinary equity shares

-

-

-

(371.5)

-

-

-

(371.5)

Other

-

-

-

0.9

-

-

-

0.9

Cancellation of repurchased ordinary shares

(32.3)

(0.2)

-

-

0.2

-

-

-

Transfer of exercised and share based awards

-

-

-

2.4

-

-

(2.4)

-

Balance at December 31, 2019

1,103.0

6.6

731.4

5,044.4

3.4

439.4

32.5

6,257.7

Loss for the three months

-

-

-

(591.7)

-

-

-

(591.7)

Other comprehensive income

-

-

-

-

-

-

-

-

Net movements in cash-flow reserve

-

-

-

-

-

(550.7)

-

(550.7)

Total other comprehensive income

-

-

-

-

-

(550.7)

-

(550.7)

Total comprehensive income

-

-

-

(591.7)

-

(550.7)

-

(1,142.4)

Transactions with owners of the
Company recognized directly in equity

 

 

 

 

 

 

 

 

Issue of ordinary equity shares

1.1

-

7.1

-

-

-

-

7.1

Share-based payments

-

-

-

-

-

-

1.1

1.1

Repurchase of ordinary equity shares

-

-

-

(209.0)

-

-

-

(209.0)

Other

-

-

-

-

-

-

-

-

Cancellation of repurchased ordinary shares

(14.9)

(0.1)

-

-

0.1

-

-

-

Transfer of exercised and share based awards

-

-

-

1.3

-

-

(1.3)

-

Balance at March 31, 2020

1,089.2

6.5

738.5

4,245.0

3.5

(111.3)

32.3

4,914.5

Loss for the nine months

-

-

-

(731.3)

-

-

-

(731.3)

Other comprehensive income

 

 

 

 

 

 

 

 

Net movements in cash flow reserve

-

-

-

-

-

68.0

-

68.0

Total other comprehensive income

-

-

-

-

-

68.0

-

68.0

Total comprehensive income

-

-

-

(731.3)

-

68.0

-

(663.3)

Transactions with owners of the
Company recognized directly in equity

 

 

 

 

 

 

 

Issue of ordinary equity shares

38.3

0.2

419.2

(2.3)

-

-

-

417.1

Share-based payments

-

-

-

-

-

-

3.1

3.1

Transfer of exercised and expired share based awards

-

-

-

3.9

-

-

(3.9)

-

Balance at December 31, 2020

1,127.5

6.7

1,157.7

3,515.3

3.5

(43.3)

31.5

4,671.4

 

Ryanair Holdings plc and Subsidiaries

 

MD&A Quarter Ended December 31, 2020

 

  due to reduced flight hours, Group wide pay cuts and participation in European Government payroll support schemes.

69% to €84.4M

 

MD&A Nine Months Ended December 31, 2020

23% lower at €439.4M  

Ryanair Holdings plc and Subsidiaries

Interim Management Report

 

· Principal risks and uncertainties relating to the remaining three months of the year;

 

· Related party transactions; and

 

· Post balance sheet events.

 

 

 

 

- Please see note 16.

Ryanair Holdings plc and Subsidiaries

Notes forming Part of the Condensed Consolidated

Interim Financial Statements

 

· Amendments to References to the Conceptual Framework in IFRS Standards (effective for fiscal periods beginning on or after January 1, 2020)

· Amendments to IFRS 3 - Definition of a Business (effective for fiscal periods beginning on or after January 1, 2020)

· Amendments to IAS 1 and IAS 8 - Definition of Material (effective for fiscal periods beginning on or after January 1, 2020)

· Amendments to IFRS 9, IAS 39 and IFRS 7 - Interest Rate Benchmark Reform (effective for fiscal periods beginning on or after January 1, 2020)

· Amendment to IFRS 16 - Covid-19-Related Rent Concessions (effective for fiscal periods beginning on or after January 1, 2020)

 

· IFRS 17 - Insurance Contracts (effective for fiscal periods beginning on or after January 1, 2023)

· Amendments to IAS 1 - Classification of Liabilities as Current or Non-Current (effective for fiscal periods beginning on or after January 1, 2023)

· Amendments to IFRS 3 - Reference to the Conceptual Framework (effective for fiscal periods beginning on or after January 1, 2022)

· Amendments to IAS 16 - Property, Plant and Equipment - Proceeds before Intended Use (effective for fiscal periods beginning on or after January 1, 2022)

· Amendments to IAS 37 - Onerous Contracts - Costs of Fulfilling a Contract (effective for fiscal periods beginning on or after January 1, 2022)

· Annual Improvements to IFRS Standards 2018-2020 (effective for fiscal periods beginning on or after January 1, 2022)

· Amendments to IFRS 17 (effective for fiscal periods beginning on or after January 1, 2023)

· Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 - Interest Rate Benchmark Reform (effective for fiscal periods beginning on or after January 1, 2021)

 

The CODM assesses the performance of the business based on the profit/(loss) after tax of each airline for the reporting period. Resource allocation decisions for all airlines are based on airline performance for the relevant period, with the objective in making these resource allocation decisions being to optimize consolidated financial results.

 

Reportable segment information is presented as follows:

 

 

Ryanair DAC

Other

Total

Ryanair DAC

Other

Total

Quarter ended

Dec 31, 2020

Dec 31, 2020

Dec 31, 2020

Dec 31, 2019 

Dec 31, 2019

Dec 31, 2019

 

€M

€M

€M

€M

€M

€M

Segment revenue

339.3

1.9

341.2

1,821.0

85.0

1,906.0

 

 

 

 

 

 

 

Segment (loss)/PAT

(269.4)

(51.4)

(320.8)

112.5

(95.4)

17.1

 

 

 

 

 

 

 

Other segment information:

 

 

 

 

 

 

Depreciation

125.1

17.8

142.9

176.1

14.3

190.4

Capex net of supplier proceeds

28.5

-

28.5

776.8

-

776.8

 

 

 

 

 

 

 

 

Ryanair DAC

Other

Total

Ryanair DAC

Other

Total

9 months ended

Dec 31, 2020

Dec 31, 2020

Dec 31, 2020

Dec 31, 2019 

Dec 31, 2019 

Dec 31, 2019 

 

€M

€M

€M

€M

€M

€M

Segment revenue

1,499.9

17.5

1,517.4

6,970.0

325.6

7,295.7

 

 

 

 

 

 

 

Segment (loss)/PAT

(583.7)

(147.6)

(731.3)

1,321.7

(38.9)

1,282.8

 

 

 

 

 

 

 

Other segment information:

 

 

 

 

 

 

Depreciation

389.4

50.0

439.4

532.1

39.4

571.5

Capex net of supplier proceeds

(114.0)

-

(114.0)

442.6

-

442.6

 

 

 

 

 

 

 

 

Ryanair DAC

Other

Total

Ryanair DAC

Other

Total

 

At Dec 31,

At Dec 31,

At Dec 31,

At Mar 31,

At Mar 31,

At Mar 31,

 

2020

2020

2020

2020

2020

2020

 

€M

€M

€M

€M

€M

€M

Segment assets

12,090.7

591.4

12,682.1

14,194.5

552.7

14,747.2

Segment liabilities

7,028.8

981.9

8,010.7

8,995.2

837.5

9,832.7

 

 

 

 

 

 

Nine

Nine

 

Quarter

Quarter

Months

Months

 

Ended

Ended

Ended

Ended

 

Dec 31,

Dec 31,

Dec 31,

Dec 31,

 

2020

2019

2020

2019

 

 

 

 

 

Basic (Loss)/earnings per ordinary share (€)

(0.2849)

0.0791

(0.6619)

1.1077

Diluted (Loss)/earnings per ordinary share (€)

(0.2849)

0.0784

(0.6619)

1.1026

Weighted average number of ordinary shares (in M's) - basic

1,126.2

1,109.6

1,104.8

1,119.8

Weighted average number of ordinary shares (in M's) - diluted

1,126.2

1,119.2

1,104.8

1,125.0

 

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 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 December 31, 2020 has been used to establish fair value. (Level 2)

· 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 December 31, 2020 to arrive at a fair value representing the amount payable to a third party to assume the obligations.

 

 

At Dec 31,

At Dec 31,

At Mar 31,

At Mar 31,

 

2020

2020

2020

2020

 

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

66.8

66.8

372.5

372.5

- Interest rate swaps

0.5

0.5

6.0

6.0

 

67.3

67.3

378.5

378.5

Current financial assets

 

 

 

 

Derivative financial instruments:

 

 

 

 

- U.S. dollar currency forward contracts

42.7

42.7

291.2

291.2

- Interest rate swaps

0.5

0.5

2.0

2.0

 

43.2

43.2

293.2

293.2

Trade receivables*

34.7

67.5

-

Cash and cash equivalents*

2,407.7

2,566.4

-

Financial asset: cash > 3 months*

1,048.3

1,207.2

-

Restricted cash*

34.1

34.4

-

Other assets*

0.1

2.3

 -

 

3,568.1

43.2

4,171.0

293.2

Total financial assets

3,635.4

110.5

4,549.5

671.7

 

 

 

 

 

 

At Dec 31, 2020

At Dec 31, 2020

At Mar 31, 2020

At Mar 31, 2020

 

Carrying

Fair

Carrying

Fair

 

Amount

Value

Amount

Value

Non-current financial liabilities

€M

€M

€M

€M

Derivative financial instruments:

 

 

 

 

- U.S. dollar currency forward contracts

37.1

37.1

-

-

- Jet fuel contracts

14.0

14.0

180.5

180.5

 

51.1

51.1

180.5

180.5

Long-term debt

1,019.2

1,026.0

1,138.9

1,148.5

Bonds

2,441.1

2,520.9

2,444.1

1,965.0

Trade payables

206.5

-

-

-

 

3,717.9

3,598.0

3,763.5

3,294.0

Current financial liabilities

 

 

 

 

Derivative financial instruments:

 

 

 

 

- Jet fuel & carbon derivative contracts

178.8

178.8

1,047.8

1,047.8

- U.S. dollar currency forward contracts

126.6

126.6

2.2

2.2

- GBP currency swap

13.8

13.8

-

-

 

319.2

319.2

1,050.0

1,050.0

Current maturities of debt

1,006.4

1,006.4

382.3

382.3

Bonds

849.4

854.8

-

-

Trade payables*

304.7

1,368.2

-

Accrued expenses*

867.0

1,553.1

-

 

  3,346.7

  2,180.4

  4,353.6

  1,432.3

Total financial liabilities

  7,064.6

  5,778.4

8,117.1

4,726.3

*The fair value of these financial instruments approximate their carrying values due to the short-term nature of the instruments.

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.

 

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