Ryanair Holdings Reports FY20 Profit of €1 Billion on Revenues of €8.49 Billion
Ryanair Holdings plc reported on Monday a 13% year-over-year profit increase to €1 billion on a 10% revenue increase to €8.49 billion, attributable to a 4% increase in pre-COVID-19 traffic. The FY20 profit excludes a €353 hedge ineffectiveness charge.
Today, Ryanair Holdings plc reported a full year 2020 profit of €1.002 billion, a 13% increase versus FY19. Revenue increased year-over-year by 10% to €8.49 billion. The reported FY20 profit excludes an exceptional fuel hedge ineffectiveness charge of €353 million. During the year, Ryanair’s traffic grew 4% to 149 million and revenue per guest increased 6% to €57. In FY20, 90 percent of Ryanair’s flights arrived on-time (excluding ATC delays), the carrier opened five new bases and launched 390 new routes. Malta Air became the Group’s 4th airline in summer 2019, joining Ryanair, Buzz and Lauda. Ryanair’s FY20 load factor remained robust at 95%, a one percent decline year-over-year.
The majority of Ryanair’s fleet was grounded in mid-March resulting in a reduction of full year traffic by over 5 million guests and more than €40 million in lost profits. As previously reported, the Group expects to operate less than one percent of its schedule during the first quarter (April-June) and to carry no more than 50% of their projected 44.6 million guests in the second quarter.
Ryanair maintains a strong balance sheet and liquidity position with €4.1 billion in cash and 330 unencumbered Boeing 737s (77% of owned fleet). Since mid-March the company has implemented numerous measures to preserve cash, including the cancellation of share buybacks and deferral of operating and non-essential CAPEX spending. Additionally, the carrier is negotiating with Boeing and Lauda’s A320 lessors to reduce planned aircraft deliveries over the next 24 months. As a result of the carrier’s cost-savings initiatives, weekly cash burn has been reduced from around €200 million in March to just over €60 million in May.