Ryanair 2009 Annual Report Download - page 12

12
Reconciliation of (loss) / profit for the year under IFRS to adjusted profit for the financial year
Year ended
March 31,
2009
Year ended
March 31,
2008
€000 €000
(Loss) / profit for the financial year - IFRS
(169,173) 390,708
Adjustments
Accelerated depreciation on property, plant and equipment ...............
51,589 10,617
Loss on impairment of available for sale financial asset .................... 222,537 91,569
Gain on disposal of property, plant and equipment ............................ - (12,153)
Tax adjustment for above....................................................................
- 192
Adjusted profit for the financial year 104,953
480,933
Exceptional items
The Company presents certain items separately, which are unusual, by virtue of their size and incidence,
in the context of our ongoing core operations, as we believe this presentation represents the underlying
business more accurately and reflects the manner in which investors typically analyse the results. Any
amounts deemed “exceptional” for management discussion and analysis purposes, in the Chairman’s Report
and Chief Executive’s Report, have been classified for the purposes of the income statement in the same way
as non-exceptional amounts of the same nature.
Exceptional items in the year ended March 31, 2009 amounted to €274.1m (2008: €90.2m) consisting of
a €222.5m (2008: €91.6m) impairment of the Aer Lingus shareholding and an accelerated depreciation charge
of €51.6m (2008: €10.6m) on aircraft disposed of in financial years 2008 and 2009 and for agreements to
dispose of aircraft in financial year 2010 and a gain of €12.1m in the year ended March 31, 2008 on aircraft
disposed of in financial year 2008.
Adjusted profit excluding exceptional items decreased by 78% to €105.0m in the year ended March 31,
2009. Including exceptional items the loss for the year amounted to (€169.2m) compared to a profit of
€390.7m in the year ended March 31, 2008.
Summary year ended March 31, 2009
Adjusted profit after tax decreased to €105.0m compared to €480.9m in the year ended March 31, 2008
primarily due to a 59% increase in fuel costs. Total operating revenues increased by 8% to €2,942.0m,
slower than the 15% growth in passenger volumes, as average fares declined by 8% due to the absence of
Easter in the year, weaker euro/sterling exchange rates and aggressive fare promotions. Ancillary revenues
grew by 23% to €598.1m during the year. Total revenue per passenger, as a result, decreased by 6%, whilst
the load factor decreased by 1 point to 81% during the year.
Total operating expenses increased by 29% to €2,797.7m, primarily due to the increase in fuel prices,
the higher level of activity and increased costs associated with the growth of the airline. Fuel, which represents
45% of total operating costs compared to 37% in the previous year, increased by 59% to €1,257.1m due to the
increase in the price per gallon and an increase in the number of hours flown, offset by a positive movement in
the US dollar exchange rate versus the euro. Unit costs excluding fuel fell by 3% and including fuel they rose
by 12%. Operating margin fell by 15 points to 5% whilst operating profit decreased by 74% to €144.2m.
Net margin fell from 18% at March 31, 2008 to 4% for the reasons outlined above.
Adjusted earnings per share for the year was 7.10 euro cent compared to earnings per share of 31.80
euro cent in the year ended March 31, 2008.