Ryanair 2004 Annual Report Download - page 45

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17 CURRENCY RATE RISK AND AIRCRAFT FUEL PRICE RISK
Currency rate risk
Ryanair has exposure to various reporting currencies (principally Sterling pounds and US dollars) due to the international nature
of its operations. The following table shows the net amount of monetary assets of Ryanair that are not denominated in Euro at
March 31, 2004 and March 31, 2003:
2004 2003
GBP US$ Euro Equiv GBP US$ Euro Equiv
MONETARY ASSETS £000 $000 000 £000 $000 000
GBP cash and liquid resources 27,151 - 40,774 43,444 - 66,464
USD cash and liquid resources - 42,477 37,749 - 7,240 6,645
27,151 42,477 78,523 43,444 7,240 73,109
Ryanair also enters into US dollar and Sterling currency forward contracts in order to manage functional currency risk which arises
on its forecasted aircraft payments, fuel, maintenance and aviationinsurance costs, which are primarily denominated in US dollars
and certain of its revenue income streams, which arise in Sterling. The following table gives details of Ryanair’s currency forward
contracts as at March 31, 2004 and at March 31, 2003:
2004 2003
GBP US$ Euro Equiv GBP US$ Euro Equiv
CURRENCY FORWARD CONTRACTS £000 $000 000 £000 $000 000
US dollar currency forward contracts
- for aircraft purchases - 441,500 362,268 - 203,500 189,417
- for fuel and other purchases - 144,500 119,520 - 169,000 156,526
Sterling currency forward contracts
- for Sterling revenues - - - 7,000 - 10,124
Aircraft fuel price risk
Ryanair enters into derivative contracts to fix the price of its forecasted aircraft fuel purchases. At March 31, 2004 and 2003, the
following fuel price contracts were outstanding:
2004 2003
METRIC TONNES OFAIRCRAFT FUEL 000’s 000’s
Aircraft fuel fixed price contracts 323 393
(Continued)
Notes 45
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