Ryanair Holdings plc today (17 May) reported a full year loss of €815m (excl. hedge ineffectiveness), compared to a PY profit of €1,002m. Features of FY21 included:

• FY21 traffic fell 81% from 149m to 27.5m due to Covid-19 restrictions.
• Liquidity preservation prioritised with €3.15bn cash at year end (31 Mar.).
• Cost reductions implemented across all Group airlines.
• Unprecedented backlog of Covid customer requests/refunds processed.
• Job losses minimised via engagement with our people & unions.
• B737-8200 “Gamechanger” firm order increased to 210 aircraft (from 135).
• CDP awarded very strong (first time) “B-” climate protection score.
• Non-EU shareholder voting rights were restricted post Brexit.

FY end	31 Mar. 2020	31 Mar. 2021	Change
Customers	148.6m	27.5m	-81%
Load Factor	95%	71%	-24pts
Revenue	€8.49bn	€1.64bn	-81%
Op. Costs	€7.37bn	€2.48bn	-66%
PAT/(Net Loss)*	€1,002m	(€815m)	n/m

 

*Non-IFRS financial measure, excl. FY21 €200m except. hedge ineffectiveness charge (FY20: €353m charge). 

COVID-19:

FY21 was the most challenging in Ryanair’s 35-year history.  Covid-19 saw traffic collapse, almost overnight, from 149m to just 27.5m as many European Govts. (with little notice or co-ordination) imposed flight bans, travel restrictions and national lockdowns. There was a partial recovery during summer 2020, as initial lockdowns eased, however a second Covid-19 wave in Europe followed quickly in the autumn with a third wave in spring.  This created enormous disruptions and uncertainty for both our customers and our people, as they suffered constantly changing Govt. guidelines, travel bans and restrictions.  Ryanair responded promptly, and effectively, to this crisis, by working hard to assist millions of customers with flight changes, refunds and changed travel plans.  We minimised job losses through agreed pay cuts and participation in Govt. job support schemes, while at the same time keeping our pilots, cabin crew and aircraft current and ready to resume service once normality returns.

The Covid-19 crisis precipitated the collapse of a number of EU airlines including Flybe, Norwegian, Germanwings and Level and substantial capacity cuts at many others.  It sparked a tsunami of State Aid from EU Govts. to their insolvent flag carriers including Alitalia, AirFrance/KLM, LOT, Lufthansa, SAS, TAP and others, which will distort EU competition and prop up high cost, inefficient, flag carriers for many years.  We expect intra-European air travel capacity to be materially lower for the foreseeable future.  This will create opportunities for Ryanair to extend airport growth incentives, as the Group takes delivery of 210 new (lower cost) Boeing 737s.  We are encouraged by the recent release of multiple Covid-19 vaccines and hope that their rollout will facilitate the resumption of intra-Europe air travel and tourism this summer.  If, as is presently predicted, most European populations are vaccinated by Sept., then we believe that we can look forward to a strong recovery in air travel, jobs and tourism in H2 of the current fiscal year (FY22). The recent strong increases in weekly bookings since early April suggests that this recovery has already begun.

THE ENVIRONMENT:

Ryanair has shown that we can grow low fare traffic while reducing our impact on the environment.   Every passenger that switches to Ryanair from one of Europe’s legacy airlines cuts their CO₂ emissions by almost 50% per flight.  Over the next 5-years Ryanair’s traffic will grow to 200m p.a.  This will be achieved in a manner that balances the desire for low fares with the need for sustainable flying.  Ryanair’s $20bn+ investment in new technology aircraft will be pivotal in achieving this ambition.  The new B737-8200 “Gamechanger” aircraft offers 4% more seats, but delivers a 16% lower fuel burn and 40% lower noise emissions which will help Ryanair to lower its CO₂ and noise footprint over the next decade.

The Group continues to work actively with the EU, fuel suppliers and aircraft manufacturers to incentivise sustainable aviation fuel (SAF) use.  We are working with A4E and the EU Commission to accelerate reform to the Single European Sky, so that we can minimize ATC delays and the resulting avoidable oil consumption and CO₂ emissions.  In 2020 Ryanair received a (first time) “B-” climate protection rating from CDP[1].  While this is a strong inaugural rating, highlighting Ryanair’s excellent environmental performance and governance, the Group is committed to improving this score over the next 2 years.  In April, Ryanair established a Sustainable Aviation Research Centre partnership with Trinity College Dublin to help accelerate the development of SAF.  Ryanair’s goal is to power 12.5% of its flights with SAF by 2030.  This, together with the Group’s investment in new Gamechanger aircraft will help Ryanair achieve its target of lowering CO₂ per passenger/km by 10% to just 60 grams by 2030.

FY21 BUSINESS REVIEW:

Revenue & Costs

FY21 revenue fell by 81% to €1.64bn, in line with the fall in traffic to just 27.5m from 149m (pre Covid-19).  Ancillary revenue delivered a solid performance as more guests chose priority boarding and reserved seating, resulting in an 11% increase in per passenger spend to almost €22. FY21 cost performance was strong, falling 66%.  Due to an 81% reduction in traffic and aircraft delivery delays, the Group recorded a €200m ineffectiveness charge on fuel and currency hedges in FY21.

During the past year substantial work has been undertaken to right size the Group’s long-term cost leadership.  This process commenced with significant cuts in senior management pay and the cancellation of FY21 management bonus payments this year.  Group airlines negotiated modest pay cuts with our people and their unions that minimised job losses but allow for pay restoration over years 3 to 5 under multi-year pay agreements.  Our Route Development teams continue to work with airport partners across Europe, and have negotiated lower airport costs, traffic recovery incentives and the extension of many low cost airport growth deals – incl., for example, long term extensions of low-cost growth deals in London Stansted (to 2028), Milan Bergamo (to 2028) & Brussels Charleroi (to 2030). In Dec. the Group increased its firm order for the B737-8200 Gamechanger from 135 to 210 aircraft while securing further, modest, price discounts.  Reasonable and fair compensation was also agreed with Boeing for the 2-year delivery delays to these aircraft.  The Gamechanger will, we believe, further widen the cost gap between Ryanair and all other European airlines for the next decade.  These new aircraft have 4% more seats, 16% lower fuel burn and 40% lower noise emissions and will enable the Ryanair Group to grow to 200m passengers p.a. over the next 5 years. Ryanair hopes to take delivery of its first Gamechanger aircraft in late May and hopes to have over 60 Gamechangers in the fleet before the peak S.22.

Balance Sheet & Liquidity

The balance sheet remains one of the strongest in the industry with a BBB credit rating (S&P and Fitch), €3.15bn cash at 31 Mar. and over 85% of the B737 fleet being unencumbered. Since Mar. 2020, the Group has lowered cash burn by cutting costs, participating in EU Govt. payroll support schemes, cancelling share buybacks and deferring non-essential capex.  Over the past year, the Group successfully raised c.€1.95bn in new finance (incl. €400m share placing, €850m eurobond and £600m CCFF) and cash was further boosted by supplier reimbursements during the year.  This financial strength enables the Group to capitalise on the many growth opportunities that will be available post Covid-19.

EU OWNERSHIP & CONTROL POST-BREXIT:

As previously advised, Ryanair has restricted voting rights of non-EU shareholders (now including UK nationals) from 1 Jan. 2021 to protect its EU airline licences post-Brexit.  A long-standing prohibition on non-EU citizens purchasing Ryanair’s ordinary shares now also extends to UK nationals, which will ensure a steady increase in the  Company’s EU shareholding (currently approx. 1/3 of economic rights but 100% of voting rights).  We expect these restrictions will remain in place for the foreseeable future until the balance in favour of EU shareholders is restored or the EU & UK agree a less restrictive airline ownership and control regime than the current 50%+ nationality rule which dates back to the 1940s.  Meanwhile, UK nationals and other non-EU investors may continue to invest only in ADRs which are listed on NASDAQ.

OUTLOOK:

FY22 continues to be challenging, with uncertainty around when and where Covid lockdowns and travel restrictions will be eased.  The Group expects Q1 traffic to be heavily curtailed to between 5m and 6m guests.  With a very close-in booking curve, visibility for the remainder of FY22 is close to zero although bookings have jumped significantly from a very low base since week 1 of April.  It is therefore impossible to provide meaningful FY22 guidance at this time.  However, as recently announced, we think that FY22 traffic is likely to be towards the lower end of our previously guided range of 80m to 120m passengers.  We also (cautiously) believe that the likely outcome for FY22 is currently close to breakeven – assuming that a successful rollout of vaccines this summer allows a timely easing of European Govt. travel restrictions on intra-European traffic in time for the peak travel period of Jul./Aug./Sept.

As we look beyond the Covid-19 crisis, and the successful completion of vaccination roll outs, the Ryanair Group expects to have a much improved cost base and a very strong balance sheet.  We will also benefit from a reduced fleet cost for the next decade as we take more deliveries of our B737 “Gamechanger” aircraft which will materially improve revenues with 4% more seats while substantially reducing unit costs, especially fuel. This will enable the Group to fund lower fares and capitalise on the many growth and market share opportunities that are now available across Europe, especially where competitor airlines have substantially cut capacity or failed. The Group expects to benefit from a strong rebound of pent up travel demand through the second half of 2021, and looks forward to returning to pre-Covid growth in summer 2022 with the help of the Gamechanger aircraft and new bases (incl. those recently announced in Billund, Riga, Stockholm, Zadar & Zagreb). Ryanair is committed to delivering this growth in an environmentally sustainable manner (which reduces both fuel consumption and CO₂ emissions per passenger) while at the same time improving its industry leading customer service and customer experience.

[1] CDP – Carbon Disclosure Project is an independent, non-profit, global environmental reporting organisation.

Ryanair, Ireland’s largest airline, has today (14^th May) called on the Irish Government to lift travel restrictions, including Ireland’s unique and failed hotel quarantine, for travel to and from the UK and the European Union.

Ryanair calls for the immediate removal of all travel restrictions from the end of May, for air travel to and from the UK  and European Union countries based on the following facts:

1. There are less than 100 patients in Irish hospitals suffering from the Covid-19 virus.
2. All of Ireland’s high-risk groups (the elderly, health service, nursing homes, etc.) have now been vaccinated, eliminating any Covid risk of our hospitals and health service being overwhelmed.
3. First dose vaccination rates in the EU are now approaching 40% of all adults receiving at least their first dose vaccine.
4. The UK have now first dose vaccinated more than 60% of its adult population, yet UK visitors that fly to Ireland are still required to quarantine for 14 days, when visitors from Northern Ireland can drive across the border with no restrictions whatsoever, and Irish citizens can travel to the UK without any quarantine.

Ryanair’s CEO Eddie Wilson said:

“Thanks to the success of the UK’s vaccine program, there is no justification for requiring visitors to Ireland from the UK (our major visitor market) to quarantine. The vast majority of the UK adult population have now received their first dose vaccination, and therefore pose no threat or risk to Ireland’s hospitals or health service. Equally as Ireland and other EU countries vaccine programs exceed 33% (with most of the high-risk groups now fully vaccinated) and with most of Europe on track to vaccinate 80% of its adult population with first dose vaccines by the end of June, there is no need or requirement for Ireland to maintain travel restrictions on UK and Intra-EU air travel from the end of May onwards.

Ireland’s travel restrictions are now outdated, inappropriate and unnecessary for air travel to/from the UK, and the European Union, where successful vaccination programs have eliminated any risk to our hospitals and health services. It’s time our Government got the country and our tourism industry back to work, and we call again on Minister Eamonn Ryan to action the Aviation Task Force Report he received in July 2020 – 10 months ago – which has been gathering dust on his desk for 10 months with no action taken whatsoever.

 Passengers all over Europe have been booking Ryanair flights in huge volumes over recent weeks as travel restrictions are lifted. It is inappropriate and unnecessary for Ireland to maintain its unique, and ineffective hotel quarantine system for EU visitors, the majority of whom will now be vaccinated, coming from the UK and Europe. Let’s end the travel restrictions on EU travel from the end of May.”

 Ryanair, Europe’s No 1 airline, today (13 May) added 4 extra flights to accommodate Chelsea and Manchester City supporters travelling to see their side’s Champions League final in Porto, following huge demand from fans after the game’s move from Istanbul.

Seats are limited and selling fast, so Ryanair advises Chelsea and Man City fans to log on to www.ryanair.com and book these Champions League special flights as soon as possible to avoid disappointment.

Chelsea v Man City – Saturday, May 29th
DATE	TIME	ROUTE
28/05/21	13:00	Manchester-Porto
30/05/21	15:00	Porto-Manchester
28/05/21	13:00	Stansted-Porto
30/05/21	17:00	Porto-Stansted

Ryanair’s Alejandra Ruiz said:

“Chelsea and Man City will now come face to face in the final of Europe’s premier club competition in Porto and following strong demand from fans for the game we’ve added 4 extra flights. Our specials depart London Stansted and Manchester on Friday 28^th May and return from Porto on Sunday 30^th May.

These Champions League special flights are on sale now, so fans should log on to www.ryanair.com today and book early to avoid missing out.”

Zachęca Do Zgłoszeń Przed 31 Maja

Ryanair, linia lotnicza nr 1 w Europie pod względem tanich lotów, punktualności lotów i obsługi klienta, ogłosiła dziś (13 maja) uruchomienie nowego panelu doradczego dla klientów. Ryanair zaprasza pasażerów z całej Europy do przekazywania opinii oraz rekomendacji, które pomogą w dalszym doskonaleniu usług pasażerskich.

W ramach pierwszego spotkania panelu doradczego klientów już tej jesieni, wybrani kandydaci zostaną zaproszeni do biura Ryanair w Dublinie, aby wziąć udział w spotkaniu dotyczącym obsługi klienta, aby pomóc Ryanairowi ulepszyć swoje usługi. Aplikanci mogą spodziewać zaproszeń na przyszłe spotkania w ramach panelu doradczego dla klientów w głównych miastach europejskich jak Madryt, Rzym, Berlin, Warszawa i wiele więcej. Zalecenia z panelu nadadzą kształt programowi poprawczemu Ryanaira w 2022 r., wzmacniając zobowiązanie Ryanaira do zapewniania najtańszych lotów, punktualnosci oraz doskonałej obsługi klienta.

Nowy panel doradczy Ryanair jest jedną z kilku inicjatyw w zakresie obsługi klienta, które zostaną wprowadzone w 2021 r. Zgłoszenia przyjmowane będą do 31 maja poprzez stronę internetową www.ryanair.com, a wybrani kandydaci zostaną powiadomieni przed 14 czerwca. Koszty przelotów oraz zakwaterowania w hotelu dla członków panelu (wraz z osobą towarzyszącą) zostaną pokryte przez Ryanair, a członkowie panelu będą mieli okazję zwiedzić Dublin podczas swojej trzydniowej wyprawy (2 noclegi).

 Dyrektor ds. Marketingu Ryanaira, Dara Brady, powiedział:

„Cieszymy się, że możemy ogłosić nasz pierwszy w historii panel doradczy dla klientów, aby umożliwić pasażerom pomoc w ulepszaniu obsługi klienta. Chociaż Ryanair pozostaje nie do pobicia pod względem tanich lotów, wyboru i punktualności,  jesteśmy zdeterminowani, aby słuchać naszych klientów i ulepszać nasze usługi przewożąc już wkrótce 200 mln pasażerów rocznie.

Nasz nowy panel doradczy zapewni nam bezpośrednie opinie oraz rekomendacje od klientów i pomoże zapewnić naszym pasażerom lepszą obsługę w 2022 roku i w kolejnych latach. Ponieważ Ryanair wychodzi z pandemii Covid-19, klienci mogą spodziewać się jeszcze większej poprawy usług, nowych samolotów i jeszcze niższych cen.”.

Invites Customers To Apply Before May 31^st 

Ryanair, Europe’s no.1 airline for low fares, choice, on-time flights and customer service, today (13 May), announced the launch of a new Customer Advisory Panel that will invite Ryanair customers all over Europe to come together to provide feedback and recommendations that will help Ryanair continue to improve its guest services.

As part of its first Customer Advisory Panel meeting this autumn, successful applicants will be flown to Ryanair’s Dublin office to participate in a Customer Care event to help Ryanair improve its service. Panel applicants can look forward to future Customer Advisory Panel meetings at exciting major European cities such as Madrid, Rome, Berlin, Warsaw and more. The recommendations from the Panel will shape Ryanair’s 2022 customer improvements program, re-enforcing  Ryanair’s commitment to delivering the lowest fares, on-time flights and great customer service.

Ryanair’s new Customer Advisory Panel is one of several customer care initiatives to be rolled out in 2021. Applications must be submitted on Ryanair.com before May 31^st and successful applicants will be notified before June 14^th. Flights and hotel accommodation for panel members (and a partner) will be covered by Ryanair and panel members will have the opportunity to explore Dublin City on their 2-night trip.

Ryanair’s Director of Marketing & Digital, Dara Brady said:

“We are excited to announce our first ever Customer Advisory Panel to allow customers help us drive improvements in Ryanair’s  customer care and service. While Ryanair cannot be beaten for low fares, choice and on-time flights, as we grow to 200m passengers p.a, we are determined to keep listening to our customers and improving our service to them.

Our new Customer Advisory Panel will provide us with direct feedback and recommendations from customers and will help us deliver an improved service for our guests throughout 2022 and beyond. As Ryanair emerges from the Covid-19 pandemic customers can look forward to even more service improvements on new aircraft at even lower prices”.

Apply here: https://www.ryanair.com/gb/en/useful-info/Customer-Panel

Green Light From Scotland For Summer Travel

Ryanair, Europe’s no. 1 airline, today (11 May) announced even more flights to Portugal, with over 20,000 extra seats from 24 May onwards as the country makes it onto Scotland’s green listed destinations. Scottish holidaymakers will now have even greater choice when flying to the Algarve, Lisbon and Porto this summer, and to celebrate, Ryanair has launched a seat sale with fares available from just £19.99 for travel until the end of October 2021 – but these sale prices must be booked by midnight Thursday, 13^th May, only on the Ryanair.com website.

Route		Departing Flights Per Week
Edinburgh	Faro	7 (+7)
	Lisbon	3 (+3)
	Porto	3 (+3)
Aberdeen	Faro	3 (+3)
Glasgow Prestwick	Faro	3 (+3)

 

Ryanair’s Director of Marketing, Dara Brady, said:

“We are very pleased to announce these 20,000 extra seats to Portugal on the back of Scotland’s green list. With quarantine-free travel now permitted to the likes of the Algarve, Lisbon and Porto, these additional flights have been added to our Scotland schedule in order to meet the demand from our customers.

Scottish families can now book a well-earned summer holiday safe in the knowledge that if their plans change, they can move their travel dates up to two times with a zero-change fee up until the end of October 2021.

 To celebrate, we are releasing seats from just £19.99 for travel until the end of October 2021, which are available to book until midnight Thursday, 13^th May. Since these amazing low prices will be snapped up quickly, customers should log onto www.ryanair.com to avoid missing out.”

Seats From 39 Kuna

Two New Routes To Malmö & Düsseldorf Weeze From September

Ryanair, Europe’s No.1 airline, today (11 May) announced it will bring forward the opening of the new base in Zagreb to 23^rd July, almost two months earlier than initially scheduled. The route from Zagreb to Milan Bergamo has been also brought forward and will be launched on 17^th June instead of July. This acceleration will allow Croatian customers to book flights to London Stansted, Brussels-Charleroi, Gothenburg-Landvetter, Milan-Bergamo and Rome-Ciampino from June and July respectively. A further nine routes and even more flights will be available to book from September, including two new routes to Malmö and Düsseldorf Weeze.

Croatian consumers can now book their summer holidays even earlier on even lower fares and with the option to avail of Ryanair’s zero change fee should plans change. To celebrate the early opening of the new base in Zagreb, Ryanair has launched a seat sale with fares available from just 39 Kuna for travel until 31^st October, which must be booked by midnight 13^th May on the Ryanair.com website.

Ryanair’s advanced Zagreb base opening will deliver:

Five Routes from 23 July 2021
From Zagreb	Departing Flights Per Week
London Stansted	4
Milan-Bergamo*	4
Rome Ciampino	3
Gothenburg-Landvetter	2
Brussels Charleroi*	2

                                               

 *Milan-Bergamo and Brussels-Charleroi will commence operations in June

 

Ryanair’s Director of Commercial, Jason McGuinness said:

“We are delighted to accelerate the launch of our new base at Zagreb, which will offer our Croatian consumers popular destinations almost two months earlier than scheduled. This advanced opening will open up routes to European hotspots such as London Stansted, Gothenburg and Rome from July. We’re also pleased to announce a further two new routes to Malmö and Düsseldorf Weeze, both operating two departing flights per week from September.

 Mindful that Covid restrictions change regularly, customers can now book flights for a well-deserved break knowing that if they need to postpone or change their travel dates, they can do so up to two times with a zero-change fee until the end of October 2021.

 To celebrate the early launch of the new Zagreb base and these popular routes, we are launching a seat sale with seats from 39 Kuna for travel until 31^st October, which must be booked by midnight 13^th May. Since these amazing low fares will be snapped up quickly, customers should log onto www.ryanair.com and avoid missing out.”