Ryanair 2004 Annual Report Download - page 4

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I am therefore pleased that Ryanair has delivered substantial
profits and industry leading margins in excess of 20%
despite yields that were 14% lower, while carrying 47%
more passengers. Adjusted net profit declined by 5% to
226.5m resulting in a 6% decline in adjusted earnings per
share to 29.91 cents.
This year we achieved a number of significant milestones:
•Launched two new bases in Rome and Barcelona.
•Launched 73 new routes increasing the overall route
network to over 150 routes.
•Took delivery of 18 new Boeing 737-800’s.
•Acquired and reorganised Buzz.
•Carried a record 2m passengers in one month (July
2003) for the first time.
•Outcarried British Airways traffic in the UK/European
market.
•Became the no. 1 on time major airline in Europe.
Unit cost reductions of 6% we re achieved. Our sta ff
efficiency ratio improved by 21% to an industry leading
10,049 passengers per employee. Our 2,300 people again
performed miracles as passenger traffic grew by 47% and
we sincerely thank them for their outstanding efforts.
Safety is our highest priority. The Board’s main focus is to
ex tend our 20 year unblemished sa fety re co rd. We
continued to improve our customer service measures and
rank number 1 among our peers for punctuality, fewest
cancellations, and fewest lost bags. We aim continuously to
improve these customer service statistics as we grow over
the coming years.
The expansion of our Eu ro p ean bases has res u l ted in
increasedshare in many of the major markets that we serve.
We remain determined to achieve our objective of being
number 1 or number 2 carrier in every market that we serve.
Ryanair will continue to offer the lowest air fares across
Europe as we compete with both loss making flag carriers
and new entrant airlines. We face into another difficult year
in the aviation industry but we remain confident that the
strength of the Ryanair model and the dedication of our
outstanding people will ensure that Ryanair’s lowest fares
revolution continues across Europe.
Yours sincerely
David Bonderman
Chairman
This has been a very challenging year for the European airline industry. In addition
to our own substantial capacity increase, there was significant increase in capacity
across the European market and a profusion of lower fares offers by flag carriers
and start up airlines, almost all of whom are making substantial losses. Our
business was adversely affected by the continuing situation in Iraq, the renewed
threat of terrorism, and significantly higher oil prices.
Chairman’s Report
4
A N N U A L R E P O RT & F I N A N C I A L S T A T E M E N T S 2 0 0 4
Dear Shareholders,