REG - Ryanair Holdings PLC Ryanair Holdings-RYA - Full Year FY25 Ryanair Holdings plc Earnings
19/05/2025 07:00
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RNS Number : 0851J Ryanair Holdings PLC 19 May 2025
RYANAIR REPORTS PAT OF €1.61BN DESPITE 7% LOWER FARES
1(ST) EU AIRLINE TO CARRY 200M GUESTS IN ONE YEAR
Ryanair Holdings plc today (19 May) reported full-year profit after tax of
€1.61bn, compared to prior-year PAT of €1.92bn, as traffic grew 9% to a
record 200m passengers at 7% lower fares.
Mar. 2024 Mar. 2025 Change
Passengers 183.7m 200.2m +9%
Load Factor 94% 94% -
Revenue €13.44bn €13.95bn +4%
Op. Costs €11.38bn €12.39bn +9%
PAT €1.92bn €1.61bn -16%
FY25 highlights include:
· Traffic grew 9% to a record 200m, despite Boeing delivery delays.
· Ave. fare down 7% & ancil. revenue up 1%.
· Cost per pax flat as the cost gap widens over competitor EU airlines.
· 181 B737 "Gamechangers" in 618 fleet at 30 Apr.
· Over 160 new routes for S.25.
· 7% of shares bought back & cancelled.
· Final div. of €0.227 per share payable in Sept. (subject to AGM
approval).
FY25 BUSINESS REVIEW
Ryanair Group CEO Michael O'Leary, said:
Revenue & Costs:
"The key feature of last years result was the 7% decline in fares which drove
strong traffic growth of 9% to just over 200m. Total revenue rose 4% to
€13.95bn. Scheduled revenue increased 1% to €9.23bn as traffic (despite
repeated Boeing delivery delays) grew 9%. The absence of a full Easter in
Q1, consumer spending pressure (driven by higher-for-longer interest rates and
inflation in H1) and a big drop off in OTA bookings prior to S.24 necessitated
repeated price stimulation last year. Ancillary revenues were solid rising 10%
to €4.72bn. Operating costs (flat on a per passenger basis) were in line
with expectations, rising 9% to €12.39bn as fuel hedge savings offset higher
staff and other costs due (in part) to repeated Boeing delivery delays.
Our FY26 fuel is almost 85% hedged at $76bbl and FY27 is 36% hedged at just
under $66bbl which helps de-risk the Group from fuel price volatility.
Balance Sheet & Liquidity:
Ryanair's balance sheet is one of the strongest in the industry with a BBB+
credit rating. At 31 Mar., gross cash was almost €4bn, boosted by delayed
aircraft capex into FY26. Year end net cash was €1.3bn even after €1.6bn
capex and €1.5bn of share buybacks. In Mar., the Group enhanced its
financial flexibility by increasing its low-cost revolving credit facility to
€1.1bn (was €0.75bn) and extending the term to Mar. 2030 (from 2028).
Our owned B737 fleet (over 590 aircraft) is fully unencumbered, widening
Ryanair's cost advantage over all competitors. While Ryanair prepares to
repay almost €2.1bn maturing bonds over the next 12-months from internal
cash resources, our competitors remain exposed to expensive (long-term)
finance, and rising aircraft lease costs.
Shareholder returns:
During FY25, Ryanair purchased and cancelled 7% of its issued share capital
(over 77m shares) and has now retired almost 36% of its issued share capital
since 2008. In line with our capital allocation policy, €0.40 cum.
dividends per share were paid during FY25 and a final dividend of €0.227 per
share is due in Sept. (subject to AGM approval). Over the next year, we
intend to pay down maturing bond debt (incl. an €850m bond in Sept. 2025
& €1.2bn in May 2026) while still funding our aircraft and engine capex
from internal resources. The Board remains committed to shareholder returns
and has now approved a follow-on €750m share buyback, which will likely run
over the next 6 to 12 months.
FLEET & GROWTH
Ryanair now has 181 B737-8200 "Gamechangers" in its 618 aircraft fleet (up 5
from year-end). This will restrict our FY26 growth to just 3% (206m
passengers). We are working closely with Boeing to accelerate deliveries and
are increasingly confident that the remaining 29 Gamechangers in our 210
orderbook will deliver well ahead of S.26, enabling us to catch up delayed
traffic growth into FY27. Boeing expects the MAX-10 to be certified in late
2025 and so we continue to plan for the timely delivery of our first 15
MAX-10s in spring 2027 (with 300 due by Mar. 2034).
We are seeing robust S.25 travel demand across our network. This year our
constrained capacity growth is being allocated to those regions and airports
who are abolishing aviation taxes and incentivising traffic growth. Ryanair
has over 160 new S.25 routes (total 2,600 routes) on-sale and we recommend all
passengers book early on www.ryanair.com (http://www.ryanair.com) to secure
the lowest airfares before they sell out.
We expect European short-haul capacity to remain constrained for the next few
years as many of Europe's Airbus operators are still working through Pratt
& Whitney engine repairs, the big 2 OEMs are well behind on aircraft
deliveries, and EU airline consolidation continues (incl. the upcoming sale of
TAP). These capacity constraints, combined with our substantial cost
advantage, strong balance sheet, low-cost aircraft orders and industry leading
operational resilience will, we believe, facilitate Ryanair's controlled
profitable growth to 300m passengers p.a. by FY34.
ESG
During FY25 we took delivery of 30 Gamechangers (4% more seats, 16% less fuel
& CO2) and we accelerated the retrofit of winglets to our B737NG fleet
(target of 409 by 2026), which reduce fuel burn by 1.5% and noise by 6%.
This investment in new technology, and our ambitious SAF commitments positions
Ryanair as one of Europe's most environmentally efficient airlines. This
year we retained our industry leading ESG ratings from MSCI (A), CDP (A-) and
Sustainalytics (No.1 global large cap airline). We also became the first
major airline to have its environmental targets (to reduce CO2 per pax/km by
27% to c.50grams by 2031) validated to the latest SBTi guidelines. As we
head into S.25, we continue to call on ATC CEOs across Europe to ensure
adequate staffing, particularly for the morning/first wave departures. This,
coupled with the protection of overflights (during national strikes), would
deliver significant environmental and punctuality benefits for EU air travel.
Ownership & Control:
Between Sept. 2024 and Mar. 2025, in anticipation of reaching the 50%
threshold of EU ownership, Ryanair carried out a review of a potential
variation of its ownership and control restrictions in a manner that continues
to ensure compliance with EU Reg. 1008/2008 ("O&C Review"). Once the 50%
threshold was reached, the Board, taking into account positive feedback from
regulators and investors resolved in March that it was in the best interest of
Ryanair and our shareholders as a whole to discontinue the prohibition on
non-EU nationals acquiring Ordinary Shares with immediate effect. We
continue to apply voting restrictions on non-EU nationals. Consequently, both
EU and non-EU nationals can now invest in Ryanair Holdings plc via Ordinary
Shares listed on Euronext Dublin and/or Depository Shares listed on Nasdaq. In
acknowledgement of these changes, MSCI recently confirmed Ryanair's inclusion
in the MSCI World Index at the end of May.
Board:
Howard Millar has chosen not to seek re-election at the upcoming AGM and will
step down from the Board in Sept. We thank him sincerely for his leadership
and his enormous contribution to Ryanair's success, firstly as our CFO from
1992 to 2014, and as a NED over the last 9 years.
OUTLOOK
We expect FY26 traffic to grow by just 3% to 206m passengers due to
constrained/delayed Boeing deliveries. Following a year of flat unit-costs,
we expect modest unit cost inflation in FY26 as the delivery of more
Gamechangers, strong jet fuel hedging and cost control across our Group
airlines helps offset increased route & ATC charges, and higher enviro.
costs (following the unwind of free ETS allowances and the introduction of a
SAF blend mandate from Jan. 2025). To date, S.25 demand is strong, with peak
fares trending (modestly) ahead of prior year. Q1 fares will benefit from
having a full Easter holiday in April, and weak prior-year comps., and Q1
fares are on track to finish a mid-high teen percent ahead of Q1 FY25. With
limited visibility, we currently expect Q2 pricing to recover some of the 7%
decline we experienced in PY Q2. The final H1 outcome is, however, heavily
dependent on close-in bookings and peak summer yields. As is normal at this
time of year, we have zero H2 visibility.
While we cautiously expect to recover most, but not all of last years 7% fare
decline, which should lead to reasonable net profit growth in FY26, it is far
too early to provide any meaningful guidance. The final FY26 outcome remains
heavily exposed to adverse external developments, incl. the risk of tariff
wars, macro-economic shocks, conflict escalation in Ukraine and the Middle
East and European ATC mismanagement/ short staffing."
ENDS
For further information Neil Sorahan Cian Doherty
please contact: Ryanair Holdings plc Drury
www.ryanair.com (http://www.ryanair.com) Tel: +353-1-9451212 Tel: +353-1-260-5000
Ryanair Holdings plc, Europe's largest airline group, is the parent company of
Buzz, Lauda, Malta Air, Ryanair & Ryanair UK. Carrying c.206m guests p.a.
on approx. 3,600 daily flights from 93 bases, the Group connects 233 airports
in 37 countries on a fleet of almost 620 aircraft, and almost 330 new Boeing
737s on order, which will enable the Ryanair Group to grow traffic to 300m
p.a. by FY34. Ryanair has a team of over 26,000 highly skilled aviation
professionals delivering Europe's No.1 operational performance, and an
industry leading 40-year safety record. Ryanair is one of the most efficient
major EU airlines. With a young fleet and high load factors, Ryanair targets
50grams of CO₂ per pax/km by 2031 (a 27% reduction).
Certain of the information included in this release is forward looking and is
subject to important risks and uncertainties that could cause actual results
to differ materially and that could impact the price of Ryanair's securities.
Forward looking statements are based on management's beliefs and assumptions
and on information currently available to management. Ryanair has no
obligation to update any forward looking statements contained in this release,
whether as a result of new information, future events, or otherwise. It is not
reasonably possible to itemise all of the many factors and specific events
that could affect the outlook and results of an airline operating in the
European economy and the price of its securities. Among the factors that are
subject to change and could significantly impact Ryanair's expected results
and the price of its securities are the airline pricing environment, fuel
costs, competition from new and existing carriers, market prices for the
maintenance and replacement of aircraft, costs associated with environmental,
safety and security measures, actions of the Irish, U.K., European Union
("EU") and other governments and their respective regulatory agencies,
litigation, post-Brexit uncertainties, changes in the structure of the
European Union, any further change in the restrictions on the ownership of
Ryanair's ordinary shares and the voting rights of its shareholders and ADR
holders, including as a result of regulatory changes or the actions of Ryanair
itself, weather related disruptions, ATC strikes and staffing related
disruptions, aircraft availability and delays in the delivery of contracted
aircraft, dependence on external service providers and key personnel, supply
chain disruptions, tariffs, fluctuations in corporate tax rates, currency
exchange rates and interest rates, airport access and charges, labour
relations, the economic environment of the airline industry, the general
economic environment in Ireland, the U.K. and Continental Europe, continued
acceptance of low fares airlines, the general willingness of passengers to
travel, war, geopolitical uncertainty and other economic, social and political
factors, significant outbreaks of airborne disease and global pandemics such
as Covid-19 and unforeseen security events, terrorist attacks and
cyber-attacks. There may be other risks and uncertainties that Ryanair is
unable to predict at this time or that Ryanair currently does not expect to
have a material adverse effect on its business.
Ryanair Holdings plc and Subsidiaries
Condensed Consolidated Preliminary Balance Sheet as at March 31, 2025
(unaudited)
At Mar 31, At Mar 31,
2025 2024
Note €M €M
Non-current assets
Property, plant and equipment 10,923.7 10,847.0
Right-of-use asset 148.5 166.5
Intangible assets 146.4 146.4
Derivative financial instruments 11 15.4 3.3
Deferred tax 1.6 2.1
Other assets 261.7 183.2
Total non-current assets 11,497.3 11,348.5
Current assets
Inventories 4.6 6.2
Other assets 1,850.7 1,275.4
Trade receivables 11 73.5 76.4
Derivative financial instruments 11 94.4 349.5
Restricted cash 11 23.1 6.4
Financial assets: cash > 3 months 11 100.1 237.8
Cash and cash equivalents 11 3,863.3 3,875.4
Total current assets 6,009.7 5,827.1
Total assets 17,507.0 17,175.6
Current liabilities
Provisions 53.5 46.0
Trade payables 11 702.0 792.2
Accrued expenses and other liabilities 6,179.4 5,227.6
Current lease liability 37.7 39.4
Current maturities of debt 11 848.4 50.0
Derivative financial instruments 11 224.7 178.8
Current tax 107.1 66.6
Total current liabilities 8,152.8 6,400.6
Non-current liabilities
Provisions 141.1 138.1
Derivative financial instruments 11 2.5 3.3
Deferred tax 377.1 362.0
Non-current lease liability 111.4 125.2
Non-current maturities of debt 11 1,685.2 2,532.2
Total non-current liabilities 2,317.3 3,160.8
Shareholders' equity
Issued share capital 6.4 6.9
Share premium account 1,421.6 1,404.3
Other undenominated capital 4.0 3.5
Retained earnings 5,588.6 5,899.8
Other reserves 16.3 299.7
Total shareholders' equity 7,036.9 7,614.2
Total liabilities and shareholders' equity 17,507.0 17,175.6
Ryanair Holdings plc and Subsidiaries
Condensed Consolidated Preliminary Income Statement for the Year Ended March
31, 2025 (unaudited)
IFRS Year Ended IFRS Year Ended
Change
Mar 31, 2025 Mar 31, 2024
Note %* €M €M
Operating revenues
Scheduled revenues +1% 9,229.8 9,145.1
Ancillary revenues +10% 4,718.7 4,298.7
Total operating revenues 8 +4% 13,948.5 13,443.8
Operating expenses
Fuel and oil -2% 5,220.2 5,142.6
Staff costs -17% 1,751.1 1,500.0
Airport and handling charges -13% 1,683.5 1,484.5
Depreciation -15% 1,214.4 1,059.5
Route charges -14% 1,166.7 1,024.4
Marketing, distribution and other -16% 878.4 757.2
Maintenance, materials and repairs -15% 476.2 414.9
Total operating expenses -9% 12,390.5 11,383.1
Operating profit -24% 1,558.0 2,060.7
Other income
Net finance and other income +262% 224.0 61.8
Foreign exchange gain 2.4 5.5
Total other income 226.4 67.3
Profit before tax -16% 1,784.4 2,128.0
Tax (expense) 5 (172.8) (210.9)
Profit for the year - all attributable to equity holders of parent -16% 1,611.6 1,917.1
Earnings per ordinary share (€)
Basic -13% 1.4631 1.6828
Diluted -13% 1.4549 1.6743
Weighted avg. no. of ord. shares (in Ms)
Basic 1,101.5 1,139.2
Diluted 1,107.7 1,145.0
*'+' is favourable and '-' is adverse year-on-year.
Ryanair Holdings plc and Subsidiaries
Condensed Consolidated Preliminary Statement of Comprehensive Income for the
Year Ended March 31, 2025 (unaudited)
Year Year
Ended Ended
Mar 31, Mar 31,
2025 2024
€M €M
Profit for the year 1,611.6 1,917.1
Other comprehensive (loss)/income:
Items that will not be reclassified subsequently to profit or loss:
Net actuarial gain - 6.6
Items that are or may be reclassified subsequently to profit or loss:
Movements in hedging reserve, net of tax:
Net movement in cash-flow hedge reserve (287.2) 234.5
Other comprehensive (loss)/income for the year, net of income tax (287.2) 241.1
Total comprehensive income for the year - attributable to equity holders of
parent
1,324.4 2,158.2
Ryanair Holdings plc and Subsidiaries
Condensed Consolidated Preliminary Statement of Cash Flows for the Year Ended
March 31, 2025 (unaudited)
Year Year
Ended Ended
Mar 31, Mar 31,
2025 2024
€M €M
Operating activities
Profit after tax 1,611.6 1,917.1
Adjustments to reconcile profit after tax to net cash from operating
activities
Depreciation 1,214.4 1,059.5
Decrease/(Increase) in inventories 1.6 (0.2)
Tax expense 172.8 210.9
Share based payments 12.8 (3.9)
Decrease/(Increase) in trade receivables 2.9 (16.7)
(Increase) in other assets (585.6) (359.0)
Increase/(Decrease) in trade payables 124.8 (46.4)
Increase in accrued expenses and other liabilities 948.8 449.6
(Decrease) in provisions (12.2) (8.3)
Increase in finance income 1.9 3.6
(Decrease)/Increase in finance expense (0.4) 7.9
Foreign exchange 7.2 (7.1)
Income tax (paid) (84.9) (49.1)
Net cash inflow from operating activities 3,415.7 3,157.9
Investing activities
Capital expenditure - purchase of property, plant and equipment (1,552.5) (2,391.9)
(Increase)/Decrease in restricted cash (16.7) 13.1
Decrease in financial assets: cash > 3 months 137.7 818.4
Net cash (used in) investing activities (1,431.5) (1,560.4)
Financing activities
Proceeds from shares issued 4.9 16.4
Share buyback (1,477.8) -
Dividends paid (437.7) (199.5)
Repayment of borrowings (50.0) (1,100.5)
Lease liabilities paid (36.4) (42.7)
Net cash (used in) financing activities (1,997.0) (1,326.3)
Increase in cash and cash equivalents (12.8) 271.2
Net foreign exchange differences 0.7 4.9
Cash and cash equivalents at beginning of the year 3,875.4 3,599.3
Cash and cash equivalents at end of the year 3,863.3 3,875.4
Included in the cash flows from operating activities for the year are the
following amounts:
Interest income received 135.9 148.4
Interest expense paid (69.7) (88.7)
Ryanair Holdings plc and Subsidiaries
Condensed Consolidated Preliminary Statement of Changes in Shareholders'
Equity for the Year Ended March 31, 2025 (unaudited)
Issued Share Other Other
Ordinary Share Premium Undenom. Retained Reserves Other
Shares Capital Account Capital Earnings Hedging Reserves Total
M €M €M €M €M €M €M €M
Balance at April 01, 2023 1,138.7 6.9 1,379.9 3.5 4,180.0 31.4 41.3 5,643.0
Profit for the year - - - - 1,917.1 - - 1,917.1
Other comprehensive income
Net actuarial gains from retirement benefit plans - - - - 6.6 - - 6.6
Net movements in cash-flow reserve - - - - - 234.5 - 234.5
Total other comprehensive income - - - - 6.6 234.5 - 241.1
Total comprehensive income - - - - 1,923.7 234.5 - 2,158.2
Transactions with owners of the
Company recognised directly in equity
Issue of ordinary equity shares 1.4 - 24.4 - (8.0) - - 16.4
Dividends paid - - - - (199.5) - - (199.5)
Share-based payments - - - - - - (3.9) (3.9)
Transfer of exercised and expired share-based awards - - - - 3.6 - (3.6) -
Balance at March 31, 2024 1,140.1 6.9 1,404.3 3.5 5,899.8 265.9 33.8 7,614.2
Profit for the year - - - - 1,611.6 - - 1,611.6
Other comprehensive (loss) - - - - - - - -
Net movements in cash flow reserve - - - - - (287.2) - (287.2)
Total other comprehensive loss - - - - - (287.2) - (287.2)
Total comprehensive income/(loss) - - - - 1,611.6 (287.2) - 1,324.4
Transactions with owners of the Company recognised directly in equity - - - - - - - -
Issue of ordinary equity shares 1.0 - 17.3 - (12.4) - - 4.9
Repurchase of ordinary equity shares - - - - (1,481.7) - - (1,481.7)
Cancellation of repurchased shares (77.2) (0.5) - 0.5 - - - -
Dividends paid - - - - (437.7) - - (437.7)
Share-based payments - - - - - - 12.8 12.8
Transfer of exercised and expired share-based awards - - - - 9.0 - (9.0) -
Balance at March 31, 2025 1,063.9 6.4 1,421.6 4.0 5,588.6 (21.3) 37.6 7,036.9
Ryanair Holdings plc and Subsidiaries
MD&A Year Ended March 31, 2025 ("FY25")
Introduction
For the purposes of the Management Discussion and Analysis ("MD&A") (with
the exception of the balance sheet commentary) all figures and comments are by
reference to the FY25 results.
Income Statement
Scheduled revenues:
Scheduled revenues rose 1% to €9.23BN as a 7% decline in fares drove strong
traffic growth of 9% to just over 200M passengers. The absence of a full
Easter in Q1, consumer spending pressure (driven by higher-for-longer interest
rates and inflation in H1) and a drop off in OTA bookings prior to summer 2024
necessitated repeated price stimulation.
Ancillary revenues:
Ancillary revenues delivered a solid performance, rising 10% to €4.72BN due
to 9% traffic growth and 1% higher spend per passenger.
Total revenues:
As a result of the above, total revenues increased 4% to €13.95BN.
Operating Expenses:
Fuel and oil:
Fuel and oil increased 2% to €5.22BN (well below 9% higher sectors) due to
favourable jet fuel hedging and lower fuel burn on the new B737-8200
"Gamechanger" aircraft.
Staff costs:
Staff costs increased 17% to €1.75BN due to the larger fleet, 9% higher
sectors, Boeing delivery delays leading to higher crewing ratios, and the
annualisation of crew productivity pay increases implemented in H2 FY24.
Airport and handling charges:
Airport and handling charges rose 13% to €1.68BN, due to 9% traffic growth
and higher landing, ground ATC & handling rates.
Depreciation:
Depreciation increased 15% to €1.21BN, primarily due to 30 more
"Gamechanger" aircraft in the fleet, higher amortisation arising from 9%
sector growth and increased B737-800 utilisation due to Boeing delivery
delays.
Route charges:
Route charges rose 14% to €1.17BN, primarily due to the 9% increase in
flight hours and 11% higher Eurocontrol rates from January 2025.
Marketing, distribution and other:
Marketing, distribution and other rose 16% to €0.88BN, primarily due to 9%
traffic growth, a legal charge booked in H2 and higher input costs for rising
onboard sales.
Maintenance, materials and repairs:
Maintenance, materials and repairs increased 15% to €0.48BN as higher
utilisation, labour inflation and delayed Boeing aircraft deliveries were
partially offset by modest delay compensation credits received.
Other income:
Net finance and other income increased to €224M due to a strong cash
balance, the Group's low-cost finance and delay compensation received. Foreign
exchange translation reflects the impact of primarily €/US$ exchange rate
movements on balance sheet revaluations.
Balance sheet:
Gross cash was just under €4BN at March 31, 2025 despite €1.6BN capex and
over €1.9BN shareholder returns (including €1.5BN share buybacks). Gross
debt was €2.7BN and net cash was €1.3BN at March 31, 2025 (PY: €1.4BN).
Shareholders' equity:
Shareholders' equity decreased by €0.58BN to €7.04BN in the year primarily
due to a €1.5BN repurchase (and cancellation) of ordinary shares, dividends
paid of €0.44BN and an IFRS hedge accounting decrease in derivatives of
€0.29BN partly offset by a €1.61BN net profit.
Ryanair Holdings plc and Subsidiaries
Notes forming Part of the Condensed Consolidated
Preliminary Financial Statements
1. Basis of preparation and material accounting policies
Ryanair Holdings plc (the "Company") is a company domiciled in Ireland. The
unaudited condensed consolidated preliminary financial statements
("preliminary financial statements") for the year ended March 31, 2025
("FY25") comprise the results of the Company and its subsidiaries (together
referred to as the "Group").
The FY25 figures and the March 31, 2024 ("FY24") comparative figures do not
include all of the information required for full annual financial statements
and therefore do not constitute statutory financial statements of the Group
within the meaning of the Companies Act, 2014. The consolidated financial
statements of the Group for FY24, together with the independent auditor's
report thereon, are available on the Company's website and were filed with the
Irish Registrar of Companies following the Company's Annual General Meeting.
The auditor's report on those financial statements was unqualified. The
financial information presented in these preliminary financial statements does
not represent full statutory accounts as defined by the Companies Act 2014.
The statutory accounts of Ryanair Holdings plc for FY25, are expected to be
filed with the Companies Registration Office by the end of October 2025. The
accounting policies, presentation and methods of computation followed in the
preliminary financial statements are consistent with those applied in the
Company's latest Annual Report.
The Audit Committee, upon delegation of authority by the Board of Directors,
approved the FY25 financial statements on May 16, 2025.
Except as stated otherwise below, the preliminary financial statements for
FY25 have been prepared in accordance with the accounting policies set out in
the Group's most recent published consolidated financial statements, which
were prepared in accordance with IFRS Accounting Standards as adopted by the
EU and also in compliance with IFRS Accounting Standards as issued by the
International Accounting Standards Board (IASB).
New IFRS standards adopted during the year
The following new and amended standards, have been issued by the IASB, and
have also been endorsed by the EU. These standards are effective for the first
time for the financial year beginning on April 1, 2024 and therefore were
applied by the Group for the first time to the FY25 consolidated financial
statements:
· Amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial
Instruments: Disclosures: Supplier Finance Arrangements (effective on or after
January 1, 2024).
· Amendments to IAS 1 Presentation of Financial Statements:
Classification of Liabilities as Current or Non-current, Classification of
Liabilities as Current or Non-current - Deferral of Effective Date, and
Non-current Liabilities with Covenants (effective on or after January 1,
2024).
· Amendments to IFRS 16 Leases: Lease Liability in a Sale &
Leaseback (effective on or after January 1, 2024).
The adoption of these new or amended standards did not have a material impact
on the Group's financial position or results for FY25, and are not expected to
have a material impact on financial periods thereafter.
Prospective IFRS accounting changes, new standards and interpretations not yet
effective
The following new or revised IFRS standards and IFRIC interpretations will be
adopted for the purposes of the preparation of future financial statements,
where applicable. Those that are not, as of yet, EU endorsed are flagged.
While under review, we do not anticipate that the adoption of the other new or
revised standards and interpretations will have a material impact on our
financial position or results from operations:
Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates: Lack of
Exchangeability (effective on or after January 1, 2025).
· IFRS 18 Presentation and Disclosure in Financial Statements
(effective on or after January 1, 2027).*
· IFRS 19 Subsidiaries without Public Accountability: Disclosures
(effective on or after January 1, 2027).*
· Amendments to the Classification and Measurement of Financial
Instruments (Amendments to IFRS 9 and IFRS 7) (effective on or after January
1, 2026).*
· Contracts Referencing Nature-dependent Electricity - Amendments to
IFRS 9 and IFRS 7 (effective on or after January 1, 2026).*
· Annual Improvements Volume 11 (effective on or after January 1,
2026).*
*These standards or amendments to standards are not as of yet EU endorsed.
2. Board of Directors
Details of the members of the Company's Board of Directors are set forth on
pages 123 and 124 of the Group's FY24 Annual Report. Amber Rudd and Jinane
Laghrari Laabi were appointed to the Board with effect from July 1, 2024.
Louise Phelan and Michael Cawley retired from the Board in June 2024 and
Roberta Neri retired from the Board in September 2024.
3. Judgements and estimates
The preparation of financial statements in conformity with IFRS Accounting
Standards requires management to make estimates, judgements and assumptions
that affect the application of policies and reported amounts of assets and
liabilities, income and expenses. These estimates and associated assumptions
are based on historical experience and various other factors believed to be
reasonable under the circumstances, and the results of such estimates form the
basis of carrying values of assets and liabilities that are not readily
apparent from other sources. Actual results could differ materially from these
estimates. These underlying assumptions are reviewed on an ongoing basis. A
revision to an accounting estimate is recognised in the period in which the
estimate is revised if the revision affects only that period or in the period
of the revision and future periods if these are also affected. Principal
sources of estimation uncertainty have been set forth below. Actual results
may differ from estimates.
Critical estimates
Long-lived assets
At March 31, 2025, the Group had €10.92BN of property, plant and equipment
long-lived assets, of which €10.67BN were aircraft related. In accounting
for long-lived assets, the Group must make estimates about the expected useful
lives of the assets and the expected residual values of the assets.
In estimating the useful lives and expected residual values of the aircraft
component, the Group considered a number of factors, including its own
historic experience and past practices of aircraft disposals, renewal
programmes, forecasted growth plans, external valuations from independent
appraisers, recommendations from the aircraft supplier and manufacturer and
other industry-available information.
The Group's estimate of each aircraft's residual value is 15% of market value
on delivery, based on independent valuations and actual aircraft disposals
during prior periods, and each aircraft's useful life is determined to be 23
years.
Revisions to these estimates could be caused by changes to maintenance
programmes, changes in utilisation of the aircraft, governmental regulations
on ageing aircraft, changes in new aircraft technology, changes in
governmental and environmental taxes, geopolitical uncertainties, changes in
new aircraft fuel efficiency, changing market prices for new and used aircraft
of the same or similar types, tariffs and macro economic shocks. The Group
therefore evaluates its estimates and assumptions in each reporting period,
and, when warranted, adjusts these assumptions. Any adjustments are accounted
for on a prospective basis through depreciation expense.
Critical judgements
In the opinion of the Directors, the following significant judgements were
exercised in the preparation of the financial statements:
Long-lived assets
On acquisition a judgement is made to allocate an element of the cost of an
acquired aircraft to the cost of major airframe and engine overhauls,
reflecting its service potential and the maintenance condition of its engines
and airframe. This cost, which can equate to a substantial element of the
total aircraft cost, is amortised over the shorter of the period to the next
maintenance check (usually between 8 and 12 years) or the remaining useful
life of the aircraft.
4. Seasonality of operations
The Group's results of operations have varied significantly from quarter to
quarter, and management expects these variations to continue. Among the
factors causing these variations are the airline industry's sensitivity to
general economic conditions and the seasonal nature of air travel.
Accordingly, the first half-year typically results in higher revenues and
results.
5. Income tax expense
The Group's consolidated tax expense for FY25 of €173M (FY24: €211M)
comprises a current tax charge of €125M and a deferred tax charge of €48M
primarily relating to the temporary differences for property, plant and
equipment and net operating losses. No significant or unusual tax charges or
credits arose during the year. The effective tax rate of approximately 10%
for the year (FY24: 10%) is the result of the mix of profits and losses
incurred by Ryanair's operating subsidiaries primarily in Ireland, Malta,
Poland and the UK.
6. Contingencies
The Group is engaged in litigation arising in the ordinary course of its
business. The Group does not believe that any such litigation will
individually, or in aggregate, have a material adverse effect on the financial
condition of the Group. Should the Group be unsuccessful in these litigation
actions, management believes the possible liabilities then arising cannot be
determined but are not expected to materially adversely affect the Group's
results of operations or financial position.
7. Capital commitments
At March 31, 2025 the Group had an operating fleet of 587 (2024: 557) Boeing
737 and 26 (2024: 27) Airbus A320 aircraft. In September 2014, the Group
agreed to purchase up to 200 (100 firm and 100 options) Boeing 737-8200
aircraft which was subsequently increased to 210 firm orders in December 2020.
At March 31, 2025, the Group had taken delivery of 176 of these aircraft. The
remaining aircraft are expected to deliver before March 2026. In May 2023, the
Group ordered up to 300 (150 firm and 150 options) new Boeing 737-MAX-10
aircraft for delivery between 2027 to 2033. This transaction was approved at
the Company's AGM in September 2023.
8. Analysis of operating revenues and segmental analysis
The Group determines and presents operating segments based on the information
that internally is provided to the Group CEO, who is the Company's Chief
Operating Decision Maker (CODM).
The Group comprises five separate airlines, Buzz, Lauda Europe ("Lauda"),
Malta Air, Ryanair DAC and Ryanair UK. Buzz, Malta Air and Lauda do not
individually exceed the quantitative thresholds and accordingly are presented
on an aggregate basis as they exhibit similar economic characteristics and
their services, activities and operations are sufficiently similar in nature.
The results of these operations are included as 'Other Airlines.' The Ryanair
DAC segment incorporates all of the Group's operations, except for those
included within 'Other Airlines', and is reported as a separate segment as it
exceeds the applicable quantitative thresholds for reporting purposes.
The CODM assesses the performance of the business based on the profit or loss
after tax of each airline for the reporting period. Resource allocation
decisions for all airlines are based on airline performance for the relevant
period, with the objective in making these resource allocation decisions being
to optimise consolidated financial results. Reportable segment information is
presented as follows:
Year Ended Ryanair DAC Other Airlines Elimination Total
Mar 31, Mar 31, Mar 31, Mar 31,
2025 2025 2025 2025
€M €M €M €M
Scheduled revenues 9,120.6 109.2 - 9,229.8
Ancillary revenues 4,718.7 - - 4,718.7
Inter-segment revenues 758.5 1,472.0 (2,230.5) -
Segment revenues 14,597.8 1,581.2 (2,230.5) 13,948.5
Reportable segment profit after income tax 1,541.0 70.6 - 1,611.6
Other segment information:
Depreciation (1,175.1) (39.3) - (1,214.4)
Net finance and other income 231.9 (7.9) - 224.0
Capital expenditure (1,278.1) (73.8) - (1,351.9)
Staff costs (1,113.5) (637.6) - (1,751.1)
Segment assets 17,199.2 307.8 - 17,507.0
Segment liabilities (9,936.7) (533.4) - (10,470.1)
The expense line items not presented in the table above are incurred by
Ryanair DAC and as such have not been presented across the segments.
Year Ended Ryanair DAC Other Airlines Elimination Total
Mar 31, Mar 31, Mar 31, Mar 31,
2024 2024 2024 2024
€M €M €M €M
Scheduled revenue 9,037.7 107.4 - 9,145.1
Ancillary revenue 4,298.7 - - 4,298.7
Inter-segment revenues 744.6 1,366.1 (2,110.7) -
Segment revenues 14,081.0 1,473.5 (2,110.7) 13,443.8
Reportable segment profit after income tax 1,860.0 57.1 - 1,917.1
Other segment information:
Depreciation (1,018.0) (41.5) - (1,059.5)
Net finance and other income 70.1 (8.3) - 61.8
Capital expenditure (1,926.6) (42.7) - (1,969.3)
Staff costs (931.2) (568.8) - (1,500.0)
Segment assets 16,867.5 308.1 - 17,175.6
Segment liabilities (8,948.7) (612.7) - (9,561.4)
The expense line items not presented in the table above are incurred by
Ryanair DAC and as such have not been presented across the segments. Prior
year comparatives have been updated to align with current year presentation.
The following table disaggregates revenue by primary geographical market. In
accordance with IFRS 8, revenue by country of departure has been provided
where revenue for that country is in excess of 10% of total revenue. Ireland
is presented as it represents the country of domicile. "Other" includes all
other countries in which the Group has operations.
Year Ended Year Ended
Mar 31, Mar 31,
2025 2024
€M €M
Italy 2,969.4 2,853.3
Spain 2,476.5 2,416.2
United Kingdom 2,044.6 2,031.0
Ireland 757.4 791.0
Other 5,700.6 5,352.3
Total revenue 13,948.5 13,443.8
Ancillary revenues comprise revenues from non-flight scheduled operations,
inflight sales and internet-related services. Non-flight scheduled revenue
arises from the sale of discretionary products such as priority boarding,
allocated seats, car hire, travel insurance, airport transfers, room
reservations and other sources, including excess baggage charges and other
fees, all directly attributable to the low-fares business.
The vast majority of ancillary revenue is recognised at a point in time, which
is typically the flight date. The economic factors that would impact the
nature, amount, timing and uncertainty of revenue and cashflows associated
with the provision of passenger travel-related ancillary services are
homogeneous across the various component categories within ancillary revenue.
Accordingly, there is no further disaggregation of ancillary revenue required
in accordance with IFRS 15.
9. Property, plant and equipment
Acquisitions and disposals
During FY25, net capital additions amounted to €1.22BN principally
reflecting aircraft purchase capex in the year and capitalised maintenance
offset by depreciation.
10. Related party transactions
The Company's related parties include its subsidiaries, Directors and Key
Management Personnel. All transactions with subsidiaries eliminate on
consolidation and are not disclosed.
There were no related party transactions in FY25 that materially affected the
financial position or the performance of the Group during that year and there
were no changes in the related party transactions described in the FY24 Annual
Report that could have a material effect on the financial position or
performance of the Group in the same period.
11. Financial instruments and financial risk management
The Group is exposed to various financial risks arising in the normal course
of business. The Group's financial risk exposures are predominantly related to
commodity price, foreign exchange and interest rate risks. The Group uses
financial instruments to manage exposures arising from these risks.
These condensed consolidated preliminary financial statements do not include
all financial risk management information and disclosures required in the
annual financial statements and should be read in conjunction with the FY24
Annual Report. There have been no changes in our risk management policies in
the period.
Fair value hierarchy
Financial instruments measured at fair value in the balance sheet are
categorised by the type of valuation method used. The different valuation
levels are defined as follows:
· Level 1: quoted prices (unadjusted) in active markets for identical
assets or liabilities that the Group can access at the measurement date.
· Level 2: inputs other than quoted prices included within Level 1
that are observable for that asset or liability, either directly or
indirectly.
· Level 3: significant unobservable inputs for the asset or
liability.
Fair value estimation
Fair value is the price that would be received to sell an asset, or paid to
transfer a liability, in an orderly transaction between market participants at
the measurement date. The following methods and assumptions were used to
estimate the fair value of each material class of the Group's financial
instruments:
Financial instruments measured at fair value
· Derivatives - currency forwards, jet fuel forward swap contracts
and carbon contracts: A comparison of the contracted rate to the market rate
for contracts providing a similar risk profile at March 31, 2025 has been used
to establish fair value. The Group's credit risk and counterparty's credit
risk is taken into account when establishing fair value (Level 2).
The Group policy is to recognise any transfers between levels of the fair
value hierarchy as of the end of the reporting period during which the
transfer occurred. During FY25 there were no reclassifications of financial
instruments and no transfers between levels of the fair value hierarchy used
in measuring the fair value of financial instruments.
Financial instruments not measured at fair value
· Long-term debt: The repayments which the Group is committed to make
have been discounted at the relevant market rates of interest applicable at
March 31, 2025 to arrive at a fair value representing the amount payable to a
third party to assume the obligations.
The fair value of financial assets and financial liabilities, together with
the carrying amounts in the condensed consolidated balance sheet, are as
follows:
At Mar 31, At Mar 31, At Mar 31, At Mar 31,
2025 2025 2024 2024
Carrying Fair Carrying Fair
Amount Value Amount Value
Non-current financial assets €M €M €M €M
Derivative financial instruments:
- U.S. dollar currency forward contracts 5.8 5.8 3.2 3.2
- Jet fuel & carbon derivatives contracts 9.6 9.6 0.1 0.1
15.4 15.4 3.3 3.3
Current financial assets
Derivative financial instruments:
- U.S. dollar currency forward contracts 84.4 84.4 144.0 144.0
- Jet fuel & carbon derivative contracts 10.0 10.0 205.5 205.5
94.4 94.4 349.5 349.5
Trade receivables* 73.5 76.4
Cash and cash equivalents* 3,863.3 3,875.4
Financial asset: cash > 3 months* 100.1 237.8
Restricted cash* 23.1 6.4
4,154.4 94.4 4,545.5 349.5
Total financial assets 4,169.8 109.8 4,548.8 352.8
At Mar 31, At Mar 31, At Mar 31, At Mar 31,
2025 2025 2024 2024
Carrying Fair Carrying Fair
Amount Value Amount Value
Non-current financial liabilities €M €M €M €M
Derivative financial instruments:
- U.S. dollar currency forward contracts 2.5 2.5 3.3 3.3
2.5 2.5 3.3 3.3
Non-current maturities of debt:
- Long-term debt 488.9 488.9 488.7 488.7
- Bonds 1,196.3 1,172.5 2,043.5 1,971.6
1,685.2 1,661.4 2,532.2 2,460.3
1,687.7 1,663.9 2,535.5 2,463.6
Current financial liabilities
Derivative financial instruments:
- Jet fuel & carbon derivative contracts 224.5 224.5 178.8 178.8
- U.S. dollar currency forward contracts 0.2 0.2 - -
224.7 224.7 178.8 178.8
Current maturities of debt:
- Short-term debt - - 50.0 50.0
- Bonds 848.4 850.3 - -
848.4 850.3 50.0 50.0
Trade payables* 702.0 792.2
Accrued expenses* 1,953.5 1,603.1
3,728.6 1,075.0 2,624.1 228.8
Total financial liabilities 5,416.3 2,738.9 5,159.6 2,692.4
*The fair value of each of these financial instruments approximate their
carrying values due to the short-term nature of the instruments.
12. Shareholders' equity and shareholders' returns
In line with the Group's Dividend Policy, a final FY24 dividend of €0.178
per share was paid in September 2024 and an interim FY25 dividend of €0.223
per share was paid on February 26, 2025.
The Company announced and launched a €700M share buyback programme in May
2024 (subsequently completed in August 2024). A follow-on €800M share
buyback programme was announced and launched in late August 2024. During FY25
the Company bought back over 77M ordinary shares at a total cost of
approximately €1.5BN. This is equivalent to approximately 7% of the
Company's issued share capital at March 31, 2024.
As a result of the share buybacks in FY25, share capital decreased by over 77M
ordinary shares with a nominal value of €0.5M and the other undenominated
capital reserve increased by a corresponding €0.5M. The other undenominated
capital reserve is required to be created under Irish law to preserve
permanent capital in the Parent Company.
13. Going concern
The Directors, having made inquiries, believe that the Group has adequate
resources to continue in operational existence for at least the next 12 months
and that it is appropriate to adopt the going concern basis in preparing these
condensed consolidated preliminary financial statements. The continued
preparation of the Group's condensed consolidated preliminary financial
statements on the going concern basis is supported by the financial
projections prepared by the Group.
In arriving at this decision to adopt the going concern basis of accounting,
the Board has considered, among other things:
· The Group's net profit of €1.61BN in FY25;
· The Group's liquidity, with just under €4BN gross cash and €1.3BN
net cash at March 31, 2025;
· In March 2025, the Group enhanced its financial flexibility by
increasing its low-cost revolving credit facility ("RCF") to €1.1BN (was
€0.75BN) and extending the term to March 2030 (from 2028). At March 31,
2025, €0.61BN was undrawn under the RCF;
· The Group's relentless focus on cost reduction and cash management;
· The Group's solid BBB+ (stable) credit ratings from both S&P and
Fitch Ratings;
· The Group's strong balance sheet position with 586 (unencumbered)
owned B737s at March 31, 2025;
· The Group's access to the debt capital markets, unsecured/secured
bank debt and sale and leaseback transactions;
· The Group's fuel hedging position (approx. 77% of FY26 and 13% of
FY27 jet fuel requirements were hedged at March 31, 2025); and
· The Group's ability, as evidenced throughout downturns (such as the
Covid-19 crisis), to preserve cash and reduce operational and capital
expenditure.
14. Post balance sheet events
In April 2025 the Company bought back approximately 1m ordinary shares,
completing the €800m share buyback program. In May 2025, the Board approved
a follow-on €750m share buyback program (including Ordinary Shares
underlying ADRs), which will likely run for the next 6 - 12 months.
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