Ryanair Celebrates The Opening Of Its 16^th Italian Base In Turin With Two Based Aircraft, A $200m Investment And 18 New Routes For Winter 2021/22

A Significant Milestone For Ryanair Opening First Base In Piedmont Region

Ryanair, Europe’s No.1 airline, today (16^th June) opened its 16^th Italian base at Turin with two based aircraft – an investment of $200m – and 32 routes connecting Turin, both domestically & internationally, to 13 countries across Europe, North Africa and the Middle East.

Ryanair’s new Turin base will deliver:

• Two based aircraft ($200m investment), 60 direct jobs
• 18 new routes (16 international / two domestic) for the winter season*
• 32 routes in total (23 international / nine domestic)
• Connections to winter holiday destinations such as Lanzarote, Malta, Mallorca and Marrakech, city breaks to Copenhagen, Budapest, London and Paris as well as domestic connections to Palermo, Naples and Bari.
• Over 123 departing flights per week.

With 32 routes to choose from, passengers can book a much-deserved winter getaway, flying on the lowest fares and with the option to avail of Ryanair’s zero change fee should plans change. To celebrate the opening of its new Turin base, Ryanair has launched a seat sale with fares available from just €19,99 for travel until March 2022, which must be booked by midnight Friday, 18^th June, only on the Ryanair.com website.

 

Ryanair’s CEO, Eddie Wilson said:

“We are delighted to open our 16^th Italian base which represents a $200 million investment at Turin Airport, with over 30 destinations to choose from this winter, including 18 new connections. We have enjoyed a great partnership with this airport since our first ever flight from London Stansted to Turin in 1999 and we are very pleased to continue growing in the region after 22 successful years.

As vaccination rollout programmes continue throughout the coming months, we want to continue supporting the economic recovery as well as regional & international connectivity across the country and position Turin as a leading winter destination – both as a charming city break and a gateway to some of the best Italian ski resorts.

To celebrate, we are launching an unmissable seat sale, with prices starting at €19,99 for travel until March 2022 available until midnight Friday, 18^th June. We are mindful that Covid restrictions change regularly, so customers can now book flights 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 December 2021. A much-deserved getaway is only a click away so to avoid disappointment, we advise customers to act fast and book directly on www.ryanair.com before these amazing low fares are snapped up!

 

Turin airport’s CEO, Andrea Andorno said:

“After difficult months, today is a very special day for Turin airport and the whole of Piedmont. It is a great satisfaction to announce the opening of the Ryanair base from November 1, 2021, a fundamental step in our collaboration with the Irish company, which historically has always been profitable for both the airport and the territory.

With these first two based aircraft, the airport will be able to immediately and significantly expand its offer of connections, thus creating the network from/to Turin with the highest number of destinations ever served.

This is a strategic opportunity that was strongly desired in order to overcome the contingent crisis linked to the pandemic as soon as possible and look towards an increasingly international future for Turin and Piedmont.

This is why we expect the people of Piedmont to rediscover the beauty of travelling through Turin Airport, taking advantage of the numerous direct flights to European capitals and many other new destinations such as Lanzarote, Tel Aviv and Seville. At the same time, we hope that the entire region will be able to concentrate resources and actions to increase the attractiveness of the city’s and the entire region’s tourist assets“.

 

*TURIN WINTER 2021/22 NEW ROUTES

NEW ROUTES	DEPARTING FLIGHTS PER WEEK
Budapest	2
Copenhagen	2
Edinburgh	1
Krakow	2
Kyiv	2
Lanzarote	2
Luton	1
Lviv**	2
Madrid	2
Malaga	2
Marrakech	2
Palma**	2
Paris-Beauvais	3
Pescara**	2
Seville	2
Shannon	1
Tel Aviv	2
Trapani	3

**Service starts in Summer 2021

Ryanair today (9 June) welcomed the EU General Court’s annulment of the European Commission’s approval of State aid by Germany to Condor.  In April 2020, the German government granted a €550m loan to Condor, which had already benefited from a €380m rescue loan from Germany in 2019 following the bankruptcy of its parent company, Thomas Cook.

While the Covid-19 crisis has caused damage to all airlines that contribute to the economy and the connectivity of Germany, the German government decided to support only its inefficient “national” airlines, including Condor.  Ryanair referred the European Commission’s approval of this €550m illegal subsidy to Condor to the EU General Court in 2020.

A Ryanair spokesperson said:

“The German government aid to Condor – both in 2019 and 2020 – went against the fundamental principles of EU law and has distorted the market to the detriment of consumers. Today’s ruling is an important victory for consumers and competition.

During the Covid-19 pandemic over €30bn in discriminatory State subsidies has been gifted to EU flag carriers.  Unless halted by the EU Courts in line with today’s ruling, the effects of market distortion caused by this State aid will be felt for decades.  If Europe is to emerge from this crisis with a functioning single market, the European Commission must stand up to national governments and stop rubberstamping discriminatory State aid to inefficient national airlines.”

 

 

 

NOTE TO EDITORS:

The EU Commission’s spineless approach to State aid since the beginning of the Covid-19 crisis has allowed Member States to write open-ended cheques to their inefficient zombie flag carriers in the name of faded national prestige. The EU Commission has hastily approved over €30bn of discriminatory State aid since the crisis began. Discriminatory State subsidies given by EU Member States or planned to be given are set out here:

Air France-KLM                €14.4bn Lufthansa Group               €11bn Alitalia                                €3.5bn SAS                                      €1.3bn TAP                                     €1.6bn Finnair                                €1.2bn Norwegian                          €0.8bn LOT                                     €0.65bn Condor                                €0.6bn Air Europa €0.5bn

 

Three More Aircraft, 21 Routes (6 New) & Over 65 Extra Weekly Flights

Ryanair, Italy’s No.1 airline, today (08 June) announced the addition of three based aircraft, six new routes and over 65 flights every week from Rome Fiumicino to a host of domestic and international destinations. This represents a further investment of $300m, which will deliver increased connectivity to the region, playing a key role in the recovery of jobs and the local economy.

Ryanair remains committed to delivering connectivity to Rome and expects its Summer ’21 schedule, including 78 routes from both Rome airports in total and over 470 departing flights per week, will help boost air traffic in the city and  the region, contributing to the recovery of the tourism industry as vaccination programmes continue and Europe re-opens in time for the peak holiday season.

Ryanair’s Rome Summer ‘21 schedule will deliver (Fiumicino & Ciampino):

• Up to 14 based aircraft, including three additional based aircraft in Fiumicino from August
• 78 routes in total (six domestic / 72 international)*
• 11 new routes
• Over 470 departing flights per week across both airports
• Connections to holiday destinations such as Malta & Rhodes, city breaks to Madrid & Porto, as well as domestic connections to Cagliari & Trapani.

Ryanair’s Rome Fiumicino Extended Summer ‘21 schedule will deliver:

• Up to six based aircraft, including three additional based aircraft from August – a $300m investment
• Up to 180 direct jobs and over 2,200 indirect jobs
• 21 routes in total (four domestic / 17 international) *
• Six new routes, all commencing in August:

 

Route	Departing Flights Per Week	Route	Departing Flights Per Week
Chania	3	Santorini	4
Fuerteventura	3	Tenerife South	3
Liverpool	4	Zakynthos	4

 

• Extra flights on eight routes:

 

Route	Departing Flights Per Week	Route	Departing Flights Per Week
Barcelona	14 (+5)	Catania	49 (+7)
Bari	18 (+4)	Kyiv	7 (+2)
Brindisi	14 (+7)	Palermo	35 (+7)
Brussels	14 (+11)	Vienna	7 (+4)

 

• Connections to holiday destinations such as Malaga & Malta, city breaks to Seville & Vienna, as well as domestic connections to Brindisi & Palermo.

Italian consumers and tourists can now plan a getaway on even lower fares and with the option to avail of Ryanair’s zero change fee should plans change. To celebrate, Ryanair has launched a seat sale with fares available from just €19.99 for travel until the end of October 2021, which must be booked by midnight Thursday 10^th June on the Ryanair.com website. 

Ryanair’s Director of Commercial, Jason McGuinness, said:

“We are delighted to confirm our commitment to Rome and the region, with 78 routes in total from both airports –  Fiumicino and Ciampino –  including 11 new routes to an array of summer hotspots. In particular, we are pleased to announce three additional based aircraft in Rome Fiumicino, along with six new routes & over 65 extra departing flights every week this summer, doubling our presence at the airport. This expansion will deliver increased connectivity to the region and support the recovery of local jobs and businesses.

Our Italian customers have now a host of domestic and international destinations to choose from this summer, with connections to the likes of Barcelona, Catania, Palermo, Malta and many others.

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 December 2021.

To celebrate, we are launching a seat sale with fares available from just €19.99 for travel until the end of October 2021, which must be booked by midnight Thursday 10^th June. Since these amazing low fares will be snapped up quickly, customers should log onto www.ryanair.com and avoid missing out.”

79% Load Factor As Covid Vaccines See EU Recovery Begin

Ryanair Holdings plc today (2 June) released May traffic statistics as follows:

	2020	2021	Growth(1)
Ryanair Group	0.07m	1.8m	–
Rolling Annual	121.0m	30.2m  (72% LF)	-75%

                                                                                   

Ryanair operated over 12,000 flights in May with a 79% load factor.

⁽¹⁾ Ryanair carried 1.0m passengers in April 2021.

Ryanair today (19 May) welcomed the EU General Court’s rulings that State aid measures favouring Air France-KLM and TAP were in breach of EU law.  The enormous amounts of State aid received by each airline are set out below:

Airline	€
Air France-KLM	3.4bn
TAP	1.2bn

 

While the Covid-19 crisis has caused damage to all airlines that contribute to the economies and the connectivity of the Netherlands and Portugal, the governments of these countries decided to support only their national flag carriers. Ryanair appealed the European Commission’s approvals of these illegal State subsidies to the EU General Court in 2020.

Ryanair’s spokesperson said:

“One of the EU’s greatest achievements is the creation of a single market for air transport.  The European Commission’s approvals of State aid to Air France-KLM and TAP went against the fundamental principles of EU law and reversed the clock on the process of liberalisation in air transport by rewarding inefficiency and encouraging unfair competition. 

During the Covid-19 pandemic over €30bn in discriminatory State subsidies has been gifted to EU flag carriers.  Unless halted by the EU Courts in line with today’s rulings, this State aid spree will distort the market for decades to come.  If Europe is to emerge from this crisis with a functioning single market, airlines must be allowed to compete on a level playing field.   Today’s rulings in 2 of more than 20 appeals filed to date before the General Court are an important victory for consumers and competition.”

*NOTE TO EDITORS:

The EU Commission’s spineless approach to State aid since the beginning of the Covid-19 crisis has allowed Member States to write open-ended cheques to their inefficient zombie flag carriers in the name of faded national prestige. The EU Commission has hastily approved over €30bn of discriminatory State aid since the crisis began. Discriminatory State subsidies given by EU Member States or planned to be given are set out here:

Air France-KLM	€14.4bn
Lufthansa Group	€11bn
Alitalia	€3.5bn
SAS	€1.3bn
TAP	€1.6bn
Finnair	€1.2bn
Norwegian	€0.8bn
LOT	€0.65bn
Condor	€0.6bn
Air Europa	€0.5bn

 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 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.