Ryanair 2008 Annual Report Download - page 12

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12
Reconciliation of profit for the year to adjusted profit for the year
Year ended
March 31, 2008
Year ended
March 31, 2007
1000 1000
Profit for the financial year 390,708
435,600
Adjustments
Accelerated depreciation on property, plant and equipment
.................
10,617
-
Loss on impairment of available for sale financial asset
.......................
91,569
-
Gain on disposal of property, plant and equipment
...............................
(12,153)
-
Tax adjustment for above................................................................
......
192
-
Release of income tax overprovision ................................
....................
-
(34,199)
Adjusted profit for the year 480,933
401,401
The items described above for the year ended March 31, 2008 consist of an accelerated depreciation charge of 19.3m (net of tax) in
relation to the agreement to dispose of aircraft at future dates, 191.6m relating to the impairment of the Aer Lingus shareholding and a
110.6m gain (net of tax) which arose on the disposal of 6 Boeing 737-800 aircraft. In the year ended March 31, 2007 the adjusting
item consists of a one time release of an overprovision, principally from deferred tax.
Adjusted profit after tax excluding exceptional items increased by 20% to 1480.9m. Including
exceptional items profit after tax decreased by 10% to 1390.7m compared to the previous year ended
March 31, 2007. For the purpose of the operating and financial review all figures and comments are by
reference to the adjusted income statement which excludes certain items as detailed above. We believe
that these adjusted operating measures represent our business more clearly.
Adjusted profit for the year
Profit after tax, increased by 20% to 1480.9m due to a 20% increase in passenger numbers, a 1%
decrease in average fares (including checked in baggage revenues) and strong growth in ancillary
revenues. The growth in revenues was offset by a combination of increased airport costs which rose by
45% to 1396.3m (arising from the doubling of airport charges at Stansted and higher charges at Dublin
Airport) and increased staff costs primarily due to higher cabin crewing ratios, which rose by 26% to
1285.3m. Operating margins, as a result, decreased by 1 point to 20%, which in turn resulted in
operating profit increasing by 16% to 1547.7m.
Operating revenues
Total operating revenues increased by 21% to 12,713.8m whilst passenger volumes increased by
20% to 50.9m. Total revenue per passenger increased by 1% due to strong ancillary revenue growth.
Scheduled passenger revenues increased by 19% to 12,225.7m reflecting a 1% decrease in fares
and a 20% increase in traffic due to increased passenger numbers on existing routes and the successful
launch of new routes and bases. Load factor remained flat at 82% during the year.