Ryanair 2010 Annual Report Download - page 88

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FISCAL YEAR 2009 COMPARED WITH FISCAL YEAR 2008
(Loss)/Profit after Taxation. Ryanair recorded a loss on ordinary activities after taxation of 1169.2
million in the 2009 fiscal year, as compared with a profit on ordinary activities after taxation of 1390.7 million
in the 2008 fiscal year. The loss, which was recorded notwithstanding an 8.4% increase in total operating
revenues to 12,942.0 million from 12,713.8 million in the prior year, was primarily attributable to (i) a 58.9%
increase in fuel and oil costs from 1791.3 million to 11,257.1 million, (ii) an impairment charge of 1222.5
million on the available-for-sale investment in Aer Lingus, reflecting a significant decline in the Aer Lingus
share price from March 31, 2008 to March 31, 2009 and (iii) accelerated depreciation of 151.6 million arising
from aircraft disposals during the year and an agreement to dispose of additional aircraft in the 2010 fiscal year.
These negative effects were offset in part by an increase in revenues and a 111.3 million tax credit. The increase
in revenues reflected an increase of 5.3% in scheduled revenues and an increase of 22.5% in ancillary revenues,
each as described in more detail below. Total revenue per passenger decreased by 5.7%, primarily due to an
8.4% decrease in average fares, as offset in part by a 22.5% increase in ancillary revenues.
Scheduled Revenues. Ryanair’s scheduled passenger revenues increased 5.3%, from 12,225.7 million in
the 2008 fiscal year, to 12,343.9 million in the 2009 fiscal year, as overall passengers booked increased 14.9%,
from 50.9 million to 58.6 million. This change reflected increased scheduled passenger volumes on existing
passenger routes and the successful launch of new bases at Alghero, Birmingham, Bologna, Bournemouth,
Cagliari and Edinburgh in the 2009 fiscal year. The higher scheduled revenues were recorded notwithstanding a
decrease of 8.4% in average fares and a one-percentage-point decrease in booked passenger load factors from
82% in the 2008 fiscal year to 81% in the 2009 fiscal year.
Passenger capacity (as measured in ASMs) during the 2009 fiscal year increased by 13.9% due to the
addition of 18 Boeing 737-800 aircraft (net of disposals), as well a 15.2% increase in sectors flown (the effect of
which was partially offset by a 1.1% decrease in the average length of passenger haul). Scheduled passenger
revenues accounted for 79.7% of Ryanair’s total revenues for the 2009 fiscal year, compared with 82.0% of total
revenues in the 2008 fiscal year.
Ancillary Revenues. Ryanair’s ancillary revenues, which comprise revenues from non-flight scheduled
operations, car rentals, in-flight sales and Internet-related services, increased 22.5%, from 1488.1 million in the
2008 fiscal year to 1598.1 million in the 2009 fiscal year, while ancillary revenue per booked passenger
increased to 110.22 from 19.58. The overall increases reflected higher revenues in each of the aforementioned
categories. Revenues from non-flight scheduled operations, including revenues from excess baggage charges,
debit and credit card transactions, sales of rail and bus tickets, accommodations and travel insurance, increased
27.3% to 1425.8 million from 1334.6 million in the 2008 fiscal year, and car rental revenues increased 27.3%, to
132.2 million from 125.3 million. The rate of increase in revenues from non-flight scheduled operations and car
rental revenues exceeded the increase in overall passengers booked, while the rate of increase in the other
categories lagged somewhat behind. Revenues from in-flight sales increased 13.5%, to 183.2 million from 173.3
million in the 2008 fiscal year. Revenues from Internet-related services increased 3.4%, from 155.0 million in
the 2008 fiscal year to 156.9 million in the 2009 fiscal year.