Ryanair 2009 Annual Report Download - page 75

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Historical Results Are Not Predictive of Future Results
The historical results of operations discussed herein may not be indicative of Ryanair’s future operating
performance. Ryanair’s future results of operations will be affected by, among other things, overall passenger
traffic volume; the availability of new airports for expansion; fuel prices; the airline pricing environment in a
period of increased competition; the ability of Ryanair to finance its planned acquisition of aircraft and to
discharge the resulting debt service obligations; economic and political conditions in Ireland, the U.K. and the
EU; terrorist threats or attacks within the EU; seasonal variations in travel; developments in government
regulations, litigation and labor relations; foreign currency fluctuations, competition and the public’s perception
regarding the safety of low-fares airlines; the value of its equity stake in Aer Lingus; changes in aircraft
acquisition, leasing, and other operating costs; and the rates of income taxes paid. Ryanair expects its
depreciation, staff and fuel charges to increase as additional aircraft and related flight equipment are acquired.
Future fuel costs may also increase as a result of the depletion of petroleum reserves, the shortage of fuel
production capacity and/or production restrictions imposed by fuel oil producers. Maintenance expenses may
also increase as a result of Ryanair’s fleet expansion and replacement program. In addition, the financing of new
Boeing 737-800 aircraft will increase the total amount of the Company’s outstanding debt and the payments it is
obliged to make to service such debt. The cost of insurance coverage for certain third-party liabilities arising
from “acts of war” or terrorism increased dramatically following the September 11, 2001 terrorist attacks.
Although Ryanair currently passes on increased insurance costs to passengers by means of a special “insurance
levy” on each ticket, there can be no assurance that it will continue to be successful in doing so. See “Item 3.
Key Information—Risk Factors—The 2001 Terrorist Attacks on the United States Had a Severe Negative
Impact on the International Airline Industry.”
RECENT OPERATING RESULTS
For the quarter ended June 30, 2009 (the first quarter of the Company’s 2010 fiscal year), the Company
recorded a significant increase in operating profit, from €7.8 million in the first quarter of the 2009 fiscal year to
€154.7 million in the recently completed quarter. Total operating revenues remained almost flat, however,
declining only slightly from €776.9 million in the first quarter of 2009 to €774.7 million in the first quarter of
2010. The increase in operating profit was therefore due to a 19.4% decrease in operating expenses. Operating
expenses declined from €769.1 million in the first quarter of 2009 to €620.0 million in the first quarter of 2010,
due primarily to a 42% decrease in fuel costs, offset by increases in other operating costs associated with a
higher level of activity in line with the growth of the airline. The Company’s profit after taxation for the quarter
ended June 30, 2009 was €123.0 million, as compared to a loss of €90.5 million for the corresponding period of
the previous year. These results include a charge of €13.5 million in the first quarter of the 2010 fiscal year and
a charge of €93.6 million in the first quarter of the 2009 fiscal year, in respect of an impairment of the Aer
Lingus shareholding. Results for the first quarter of 2009 also include an accelerated depreciation charge of
€17.9 million in respect of fiscal year 2009 and fiscal year 2010 aircraft disposals. The Company’s cash and
cash equivalents, restricted cash and financial assets with terms of less than three months amounted to €2,500.1
million at June 30, 2009 as compared with €2,250.0 million at June 30, 2008.