Ryanair 2012 Annual Report Download - page 5

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CHIEF EXECUTIVE‟S REPORT
Dear Shareholders,
Our results for the past year underline the enduring strength of Ryanair‘s ultra low fare airline model here in Europe.
While traffic growth has slowed, Ryanair delivered a 25% increase in annual profits to a new record of €503 million.
Our traffic grew 5% to 75.8 million, our load factor was 82% and average fare (which include optional checked in
bag fees) rose by 16% to €45. Group turnover rose 19% to €4,325 million, which included scheduled revenue
growth of 22% to €3,439 million, and ancillary revenue growth of 11% to €886 million.
Operating costs rose 19% to €3,707 million, due to a €367 million (30%) increase in our fuel bill to €1,594 million
and further unjustified price increases at Dublin Airport, where the Government owned DAA monopoly continues to
raise airport fees while presiding over record traffic declines. Over the past 4 years, despite wasting €1.2 billion on
its new Terminal 2, Dublin Airport‘s traffic has declined from 23.5 million in 2008, to 18.7 million in 2011.
Ryanair has made a number of growth offers to Government to reverse these declines, and create thousands of new
jobs at Dublin Airport, but so far these offers have not been taken up.
In the UK, the Ferrovial owned BAA airport monopoly continues to launch Court appeals to delay the inevitable
sale of Stansted Airport. Ryanair is working with the Competition Commission to expedite the long delayed sale of
Stansted which will, we believe, bring about much needed competition, lower costs and better passenger service at
Stansted, and reverse 5 years of traffic declines from 24 million in 2007 to just 18 million in 2011 under the BAA‘s
mismanagement. We hope now that the BAA‘s latest appeal, which was dismissed by the Court of Appeal in mid
July, will finally result in the sale of Stansted before the end of 2012. Ryanair has held discussions with a number of
parties who are interested in bidding for Stansted and we have assured them that subject to a competitive cost base,
Ryanair would be willing to deliver rapid traffic growth at Stansted over a 5 year period.
Ryanair welcomes the EU‘s recent ruling that the differential Irish air travel tax in 2009 was unlawful, and we hope
this will encourage the Irish Government to repeal what remains of this damaging and anti-visitor tax. Ryanair
regrets the Spanish Government‘s recent decision to increase departure taxes at many Spanish airports (doubling
them at Madrid and Barcelona) from 1st July. Ryanair, and many other airlines at these airports have announced cuts
to flights, traffic and jobs from October 2012, although we hope that the Spanish Government will change its mind
and follow the earlier lead of the Dutch and Belgian Governments who reversed similar damaging passenger taxes.
Our passengers
Ryanair delivers Europe‘s No. 1 passenger service for the benefit of our passengers, our people and our
shareholders. We continue to grow delivering lower fares, better punctuality, fewer lost bags and, as a result have
fewer passenger complaints than any other airline in Europe.