Ryanair 2009 Annual Report Download - page 78

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78
RESULTS OF OPERATIONS
The following table sets forth certain income statement data (calculated under IFRS) for Ryanair
expressed as a percentage of Ryanair’s total revenues for each of the periods indicated:
Fiscal Year ended March 31,
2009 2008 2007
Total Revenues ............................................................. 100%
100%
100%
Scheduled Revenues .................................................. 79.7
82.0
83.8
Ancillary Revenues ................................................... 20.3
18.0
16.2
Total Operating Expenses ............................................ 96.9
80.2
78.9
Staff Costs ................................................................. 10.5
10.5
10.1
Depreciation and Amortization ................................. 8.7
6.5
6.4
Fuel and Oil ............................................................... 42.7
29.2
31.0
Maintenance, Materials and Repairs ......................... 2.3
2.1
1.9
Marketing and Distribution Costs.............................. 0.4
0.6
1.1
Aircraft Rentals ......................................................... 2.7
2.7
2.6
Route Charges ........................................................... 9.8
9.5
8.9
Airport and Handling Charges ................................... 15.1
14.6
12.2
Other .......................................................................... 4.7
4.5
4.7
Operating Profit ............................................................ 3.1
19.8
21.1
Net Interest Income (Expense) ..................................... (1.9)
(0.5)
(0.9)
Other Income (Expenses) ............................................. (7.4)
(3.1)
(0.0)
(Loss) / Profit before Taxation ..................................... (6.2)
16.2
20.2
Taxation (a) .................................................................. 0.4
1.8
0.7
(Loss) / Profit after Taxation ....................................... (5.8)
14.4
19.5
______________
(a) Taxation in the 2007 fiscal year included the release of a tax contingency reserve of €34.2 million,
principally relating to deferred tax and arising from the recognition of certain previously unrecognized tax
benefits. The resulting benefit to the Company’s effective tax rate is not reasonably expected to recur.
FISCAL YEAR 2009 COMPARED WITH FISCAL YEAR 2008
(Loss) / Profit after Taxation. Ryanair recorded a loss on ordinary activities after taxation of €169.2
million in the 2009 fiscal year, as compared with a profit on ordinary activities after taxation of €390.7 million
in the 2008 fiscal year. The loss, which was recorded notwithstanding an 8.4% increase in total operating
revenues to €2,942.0 million from €2,713.8 million in the prior year, was primarily attributable to (i) a 58.9%
increase in fuel and oil costs from €791.3 million to €1,257.1 million, (ii) an impairment charge of €222.5
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 €51.6 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 €11.3 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 €2,225.7 million in
the 2008 fiscal year, to €2,343.9 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