Ryanair 2016 Annual Report Download - page 4

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Chairman’s Report
Dear Shareholder,
The past year has been a successful one for our airline. Highlights of the year include:
 We grew our traffic by 18% to 106.4m customers as load factors rose from 88% to 93%;
 We delivered Year 2 of our “Always Getting Better” (“AGB”) customer experience program;
 We opened seven new bases and more than 100 new routes;
 We became the first airline to carry over 100m international customers in a calendar year;
 We launched our new website and mobile app in October;
 We agreed five year pay and conditions deals with all 84 pilot and cabin crew bases;
 We returned the Aer Lingus proceeds (€398m) to shareholders in November;
 We launched our seventh share buy-back program in February and completed it in June 2016; and
 We increased profit after tax by 43% to €1,242m (before an exceptional gain of €317.5m on the sale of our
29.8% shareholding in Aer Lingus).
Last year we maintained our relentless focus on costs and I am pleased to report that, despite the fact we grew
significantly at more expensive primary airports, our unit costs fell by 6% (ex-fuel down 2%). It is notable that in the
two years since we launched AGB, we have delivered ex-fuel unit cost reductions of over 2%. During fiscal 2016 we
took delivery of 41 new Boeing 737-800 aircraft which facilitated our expansion into more primary airports and routes.
Our punctuality remains the best in the industry with over 90% of our flights on time in fiscal 2016.
In September 2015 your Board accepted the IAG Group offer of €398m for Ryanair’s 29.8% shareholding in Aer Lingus.
In fiscal 2016 we returned €1,104m to shareholders via share buy-backs (€706m) and a “B” share program (€398m). In
February 2016 we announced a further €800m share buy-back program. Following the June 2016 Brexit referendum, we
increased the size of the buy-back program to €886m and completed it in late June 2016. We have now returned over
€4.2bn to our shareholders since 2008.
Since I wrote to you last year, there have been a number of changes to the Board. Michael Horgan stepped down at last
year’s AGM and John Leahy has decided not to stand for re-election at the AGM in September. I wish to thank both
Michael and John most sincerely for their valuable contributions to the Board and to our Safety Committee. I wish to
welcome our new Directors, Howard Millar who joined the Board last August, and Mike O’Brien who joined in May
2016. I look forward to working closely with them.
The past year has seen our profitability grow strongly while we enhanced our product and service further in year 2 of
AGB. I wish to personally thank each of the 11,500 dedicated aviation professionals at Ryanair who continue to work
hard on behalf of customers and shareholders to deliver strong financial results while at the same time providing the
lowest fares, the best on time performance, superior customer service and above all delivering our industry leading 31-
year safety record for the 106m customers who flew with Ryanair last year. We look forward to welcoming them all on
board another Ryanair flight again soon.
Yours sincerely,
David Bonderman
Chairman