Ryanair 2010 Annual Report Download - page 86

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The following table sets forth the amounts in euro cent of, and percentage changes in , Ryanair’s
operating expenses (on a per-ASM basis) for the fiscal years ended March 31, 2010 and March 31, 2009 under
IFRS. These data are calculated by dividing the relevant expense amount (as shown in the consolidated financial
statements) by the number of ASMs in the relevant year as shown in the table of “Selected Operating and Other
Data” in Item 3 and rounding to the nearest euro cent; the percentage change is calculated on the basis of the
relevant figures before rounding.
Fiscal Year
Ended
March 31,
2010
Fiscal Year
Ended
March 31,
2009 % Change
Staff Costs.............................................................................. 0.63 0.66 (4.6)%
Depreciation and Amortization .............................................. 0.44 0.54 (19.0)%
Fuel and Oil............................................................................ 1.67 2.67 (37.4)%
Maintenance, Materials and Repairs ...................................... 0.16 0.14 13.4%
Aircraft Rentals...................................................................... 0.18 0.17 7.6%
Route Charges........................................................................ 0.63 0.61 3.4%
Airport and Handling Charges ............................................... 0.86 0.94 (8.8)%
Marketing, Distribution and Other ......................................... 0.27 0.32 (16.0)%
Total Operating Expenses ...................................................... 4.84 6.05 (20.1)%
Staff Costs. Ryanair’s staff costs, which consist primarily of salaries, wages and benefits, decreased
4.6% on a per-ASM basis, while in absolute terms, these costs increased 8.3%, from 1309.3 million in the 2009
fiscal year to 1335.0 million in the 2010 fiscal year. The increase in absolute terms was primarily attributable to
a 10.4% increase in average headcount to 7,032, which was partially offset by the impact of a Company-wide
pay freeze, the higher proportion of contract crew operating during the year, and the rise, during the year, in the
proportion of cabin crew members who earn below-average salaries. Employee numbers rose due to the growth
of the business.
Depreciation and Amortization. Ryanair’s depreciation and amortization per ASM decreased by
19.0%, while in absolute terms these costs decreased 8.1% from 1256.1 million in the 2009 fiscal year, to
1235.4 million in the 2010 fiscal year. The decrease was recorded notwithstanding the addition of 39 owned
aircraft (net of disposals) to the fleet during the 2010 fiscal year, as the figure for the 2009 fiscal year had
included accelerated depreciation of 151.6 million in relation to aircraft disposals during the year and an
agreement to dispose of additional aircraft in the 2010 fiscal year, while there was no such accelerated
depreciation recognized in the 2010 fiscal year. See “—Critical Accounting Policies—Long-lived Assets”
above.
Fuel and Oil. Ryanair’s fuel and oil costs per ASM decreased by 37.4%, while in absolute terms, these
costs decreased by 28.9% from 11,257.1 million in the 2009 fiscal year to 1893.9 million in the 2010 fiscal year,
in each case after giving effect to the Company’s fuel hedging activities. The 28.9% decrease reflected a 35.6%
decrease in average fuel prices paid, the impact of which was partially offset by a 12.8% increase in the number
of hours flown and a 1.0% increase in the average sector length. Fuel and oil costs include the direct cost of fuel,
the cost of delivering fuel to the aircraft, and aircraft de-icing costs. The average fuel price paid by Ryanair
(calculated by dividing total fuel costs by the number of U.S. gallons of fuel consumed) decreased 35.6% from
12.35 per U.S. gallon in the 2009 fiscal year to 11.52 per U.S. gallon in the 2010 fiscal year, in each case after
giving effect to the Company’s fuel hedging activities.
Maintenance, Materials and Repairs. Ryanair’s maintenance, materials and repair expenses, which
consist primarily of the cost of routine maintenance and the overhaul of spare parts, increased 13.4% on a per-
ASM basis, while in absolute terms these expenses increased by 28.7% from 166.8 million in the 2009 fiscal
year to 186.0 million in the 2010 fiscal year. The increase in absolute terms during the fiscal year reflected an
increase in the average number of leased Boeing 737-800 aircraft, which grew from 40 to 50 during the year,
additional costs arising from increased line maintenance activity at new bases and costs incurred to satisfy
provisions of lease contracts dealing with the condition of aircraft due to be returned in 2010 and 2011. These
factors were offset in part by the positive impact of the weakening of the euro against the U.S. dollar during the
period, as many of these expenses are denominated in U.S. dollars.