Ryanair 2005 Annual Report Download - page 55

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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, 2005 and March 31, 2004:
2005 2004
GBP US$ Euro Equiv GBP US$ Euro Equiv
MONETARY ASSETS £000 $000 000 £000 $000 000
GBP cash and liquid resources 39,824 - 57,842 27,151 - 40,774
USD cash and liquid resources - 5,900 4,551 -42,477 37,749
39,824 5,900 62,393 27,151 42,477 78,523
Ryanair also enters into US dollar currency forward contracts in order to manage functional currency risk which arises on its
forecasted aircraft payments, fuel, maintenance and aviation insurance costs, which are primarily denominated in US dollars and
certain of its revenue income streams, which arise in Sterling. The following table gives details of Ryanair’s currency forward
contracts as at March 31, 2005 and at March 31, 2004:
2005 2005 2004 2004
GBP US$ Euro Equiv GBP US$ Euro Equiv
CURRENCY FORWARD CONTRACTS £000 $000 000 £000 $000 000
US dollar currency forward contracts
- for aircraft purchases - 425,000 324,676 - 441,500 362,268
- for fuel and other purchases - 332,713 256,450 - 144,500 119,520
GBP currency forward contracts
- for other airline costs 31,682 - 44,905 ---
Aircraft fuel price risk
Ryanair enters into derivative contracts to fix the price of its forecasted aircraft fuel purchases. At March 31, 2005 and 2004, the
following fuel price contracts were outstanding:
2005 2004
METRIC TONNES OF AIRCRAFT FUEL 000’s 000’s
Aircraft fuel fixed price contracts 65 323
(Continued)
Notes 45
ANNUAL REPORT & FINANCIAL STATEMENTS 2005