RYANAIR HOLDINGS PLC annual report, Q4 FY2024

Ryanair Holdings plc Form 20-F Summary

Reporting period: Fiscal year ended March 31, 2024. The request metadata identifies “2023 Q4,” but the filing is an annual Form 20-F for fiscal 2024, not a standalone quarterly report. Financial statements are prepared under IFRS in euro.

Business Context

Ryanair operates a low-fare, short-haul airline group serving Europe and North Africa through Ryanair DAC, Buzz, Lauda, Malta Air and Ryanair UK. At March 31, 2024, the Group operated 584 aircraft, including 557 Boeing 737s and 27 leased Airbus A320s, from 95 bases and served approximately 235 airports. It carried approximately 183.7 million passengers during fiscal 2024.

Financial and Operating Performance

Metric	FY2024	FY2023	Change
Total operating revenue	€13,443.8 million	€10,775.2 million	+25%
Scheduled revenue	€9,145.1 million	€6,930.3 million	+32%
Ancillary revenue	€4,298.7 million	€3,844.9 million	+12%
Operating profit	€2,060.7 million	€1,442.6 million	+43%
Profit before tax	€2,128.0 million	€1,442.5 million	+48%
Profit after tax	€1,917.1 million	€1,313.8 million	+46%
Operating margin	15%	13%	+2 percentage points
Basic EPS	€1.6828	€1.1557	+46%

Passenger traffic increased 9% to approximately 183.7 million, while the booked passenger load factor improved to 94% from 93%.
Average booked fare increased 21% to approximately €49.80; ancillary revenue per passenger increased to €23.40 from €22.81.
Total operating expenses increased 22% to €11,383.1 million. Fuel and oil costs rose 28% to €5,142.6 million and represented approximately 45% of operating expenses. Staff costs increased 26% to €1,500.0 million.
Net finance income was €61.8 million, compared with net finance expense of approximately €0.1 million in fiscal 2023, primarily reflecting higher deposit interest income, lower debt and a positive net cash position.
The effective tax rate was approximately 9.9%, compared with 8.9% in fiscal 2023.

Cash Flow, Liquidity and Capital Structure

Net cash from operating activities was €3,157.9 million, down from €3,891.0 million, primarily due to movements in forward bookings.
Capital expenditure was €2,391.9 million, principally for 48 aircraft deliveries, aircraft pre-delivery deposits and capitalized maintenance.
Net cash used in investing activities was €1,560.4 million; net cash used in financing activities was €1,326.3 million.
Cash and cash equivalents were €3,875.4 million. Gross cash resources, including deposits and restricted cash, were €4,119.6 million, compared with €4,675.0 million at March 31, 2023.
Total borrowings, including lease liabilities, were €2,746.8 million, down from €4,116.2 million. Net cash was €1,372.8 million, compared with €558.8 million in the prior year.
Ryanair repaid a €750 million 1.125% Eurobond and €260 million drawn under its revolving credit facility during fiscal 2024. The Group had €490 million drawn under a €750 million unsecured revolving credit facility maturing in May 2028.
All 556 owned Boeing aircraft were unencumbered at year-end. The Group maintained BBB+ ratings with stable outlooks from S&P and Fitch.

Material Changes Versus Fiscal 2023

Revenue, operating profit and net income increased substantially as traffic and fares recovered, despite higher fuel, labor, airport and handling costs.
The break-even load factor improved to 80% from 81%, while the operating margin increased to 15% from 13%.
Ryanair delivered 48 Boeing 737-8200 “Gamechanger” aircraft during the year and had 146 in service at year-end. Boeing delivery delays increased costs and affected operating planning.
Staff increased to 27,076 from 22,261, reflecting fleet growth and increased operational resilience requirements.
Ryanair paid a €0.175 per share interim dividend in February 2024 and recommended a final dividend of approximately €0.178 per share, subject to shareholder approval.
After year-end, in May 2024, the Company announced a €700 million share buyback program. No share repurchases occurred during fiscal 2024.

Outlook, Guidance and Management Commentary

Management modeled a base case of approximately 200 million passengers for fiscal 2025 and stated that available liquidity and financing sources should cover expected operating, capital expenditure, debt repayment and tax requirements for at least the next 12 months.
Ryanair expects to receive the remaining 64 Boeing 737-8200 aircraft before the end of fiscal 2025.
The 2023 Boeing agreement covers up to 300 Boeing 737-MAX-10 aircraft, including 150 firm orders and 150 options, scheduled for delivery from 2027 through 2033. The Group expects its fleet to reach approximately 800 narrow-body aircraft following deliveries and planned disposals or lease returns.
Management’s longer-term target is approximately 300 million passengers annually by fiscal 2034, although the filing states that this target may not be achieved.
Fuel hedging covered approximately 84% of fiscal 2024 requirements. At March 31, 2024, approximately 70% of estimated fiscal 2025 fuel requirements and 100% of estimated fiscal 2025 carbon requirements were hedged.
The Group targets net-zero carbon emissions by 2050, approximately 50 grams of CO₂ per passenger-kilometer by 2031 and 12.5% sustainable aviation fuel usage by 2030.

Risks, Contingencies and Unusual Items

Key operating risks include fuel prices and availability, fare competition, economic weakness, inflation, foreign exchange, interest rates, labor costs, ATC disruption, weather, geopolitical conflicts, cyberattacks and supply-chain constraints.
Ryanair is highly dependent on Boeing for aircraft and parts. Delays in Boeing deliveries or certification of the Boeing 737-MAX-10 could affect capacity plans, capital spending and results.
Aircraft purchase obligations totaled €11,653 million, including €2,162 million due within one year and €5,416 million due after five years. Total contractual obligations were €14,588 million.
Ryanair provided approximately €2.76 billion of letters of guarantee for subsidiary obligations, excluding guarantees associated with undelivered Boeing aircraft.
European Commission investigations and litigation concerning alleged unlawful state aid at certain airports remain pending. Adverse outcomes could require repayments and restrict access to publicly owned airports.
In May 2024, Spanish consumer authorities ordered discontinuation of certain cabin-baggage and customer policies and imposed fines totaling approximately €150 million across Ryanair and other airlines. The decision was subject to review and appeal.
The Italian competition authority’s investigation into Ryanair’s dealings with online travel agents remained pending. Potential remedies or fines could be material; the filing states that competition authorities may impose fines of up to 10% of global annual turnover.
Ryanair reported no material cybersecurity incidents during fiscal 2024. However, its reservation, payment, flight-planning and operational systems remain dependent on internal and third-party technology.
Free emissions allowances are being phased out, while sustainable aviation fuel mandates and other environmental rules are expected to increase costs.
The filing identifies aircraft useful lives and residual values as a critical audit matter. Aircraft-related property, plant and equipment had a net book value of €10.61 billion, based partly on a 23-year useful life and a 15% residual-value assumption.

Investor Verification Checklist

Verify fiscal 2025 traffic, fare, load-factor and yield trends against the 200 million passenger base-case assumption.
Monitor fuel, carbon and foreign-exchange hedge coverage, hedge effectiveness and potential exposure when hedges expire.
Assess Boeing delivery timing, certification of the 737-MAX-10 and the funding required for the €11.65 billion of aircraft purchase obligations.
Review liquidity after the proposed final dividend and €700 million buyback, including cash required for aircraft deposits and deliveries.
Track the Spanish consumer-protection fines, EU state-aid proceedings and Italian competition investigation for possible cash costs or operational restrictions.
Evaluate the effects of labor agreements, pay increases, crewing ratios and recruitment needs on unit costs.
Assess environmental compliance costs, including ETS allowance purchases, SAF mandates and aviation taxes.
Reconcile reported operating cash flow with forward-booking movements and confirm the sustainability of the positive net cash position.
Confirm that the filing’s long-term fleet and passenger targets remain consistent with airport access, aircraft availability, demand and financing capacity.