FREE ELECTRONIC LIBRARY - Online materials, documents

Pages:     | 1 |   ...   | 13 | 14 || 16 | 17 |   ...   | 36 |

«As filed with the United States Securities and Exchange Commission on July 26, 2016 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. ...»

-- [ Page 15 ] --

competition and the public’s perception regarding the safety of low-fares airlines; changes in aircraft acquisition, leasing, and other operating costs; flight interruptions caused by volcanic ash emissions or other atmospheric disruptions; flight disruptions caused by periodic and prolonged air traffic controller strikes in Europe; the rates of income and corporate taxes paid, and the impact of the financial and Eurozone crisis. Ryanair expects its depreciation, staff and fuel charges to increase as additional aircraft and related flight equipment are acquired. Future fuel costs may also increase as a result of the depletion of petroleum reserves, the shortage of fuel production capacity and/or production restrictions imposed by fuel oil producers. Maintenance expenses may also increase as a result of Ryanair’s fleet expansion and replacement program. In addition, the financing of new Boeing 737-800 aircraft and Boeing 737MAX-200 will increase the total amount of the Company’s outstanding debt and the payments it is obliged to make to service such debt. The cost of insurance coverage for certain third-party liabilities arising from “acts of war” or terrorism increased dramatically following the September 11, 2001 terrorist attacks. Although Ryanair currently passes on increased insurance costs to passengers by means of a special “insurance levy” on each ticket, there can be no assurance that it will continue to be successful in doing so. See “Item 3. Key Information—Risk Factors—Risks related to the Airline Industry— Terrorism in Europe, the United States or Elsewhere Could Have a Material Detrimental Effect on the Company.”


The Company’s profit after tax for the quarter ended June 30, 2016 (the first quarter of the Company’s 2017 fiscal year) was €255.5 million, as compared to €245.1 million for the corresponding period of the previous year. The Company recorded an increase in operating profit, from €288.4 million in the first quarter of the 2016 fiscal year to €306.8 million in the recently completed quarter. Total operating revenues increased from €1,652.7 million in the first quarter of fiscal 2016 to €1,687.4 million in the first quarter of fiscal 2017. The increase in operating profit was primarily due to an 11% increase in traffic and a stronger load factor (up 2 points to 94%). Operating expenses increased from €1,364.3 million in the first quarter of fiscal 2016 to €1,380.6 million in the first quarter of fiscal 2017, due primarily to the increased costs associated with the growth of the airline. The Company’s cash and cash equivalents, restricted cash and financial assets with terms of less than three months amounted to €4,103.8 million at June 30, 2016 as compared with €4,881.2 million at June 30, 2015.

–  –  –

The following discussion and analysis of Ryanair’s financial condition and results of operations is based on its consolidated financial statements, which are included in Item 18 and prepared in accordance with IFRS.

The preparation of the Company’s financial statements requires the use of estimates, judgments, and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the periods presented. Actual results may differ from these estimates.

The Company believes that its critical accounting policies, which are those that require management’s most difficult, subjective and complex judgments, are those described in this section. These critical accounting policies, the judgments and other uncertainties affecting application of these policies and the sensitivity of reported results to changes in conditions and assumptions are factors to be considered in reviewing the consolidated financial statements included in Item 18 and the discussion and analysis below. For additional detail on these policies, see Note 1, “Basis of preparation and significant accounting policies,” to the consolidated financial statements included in Item 18.

Long-lived Assets As of March 31, 2016, Ryanair had €6.3 billion of long-lived assets, virtually all of which were aircraft. In accounting for long-lived assets, Ryanair must make estimates about the expected useful lives of the assets, the expected residual values of the assets, and the potential for impairment based on the fair value of the assets and the cash flows they generate.

In estimating the lives and expected residual values of its aircraft, Ryanair has primarily relied on its own and industry experience, recommendations from Boeing, the manufacturer of all of the Company’s aircraft, valuations from appraisers and other available marketplace information. Subsequent revisions to these estimates, which can be significant, could be caused by changes to Ryanair’s maintenance program, changes in utilization of the aircraft, governmental regulations on aging of aircraft, changes in new aircraft technology, changes in governmental and environmental taxes, changes in new aircraft fuel efficiency and changing market prices for new and used aircraft of the same or similar types. Ryanair evaluates its estimates and assumptions in each reporting period, and, when warranted, adjusts these assumptions. Generally, these adjustments are accounted for on a prospective basis, through depreciation expense.

Ryanair periodically evaluates its long-lived assets for impairment. Factors that would indicate potential impairment would include, but are not limited to, significant decreases in the market value of an aircraft, a significant change in an aircraft’s physical condition and operating or cash flow losses associated with the use of the aircraft.

While the airline industry as a whole has experienced many of these factors from time to time, Ryanair has not yet been seriously impacted and continues to record positive cash flows from these long-lived assets. Consequently, Ryanair has not yet identified any impairments related to its existing aircraft fleet. The Company will continue to monitor its long-lived assets and the general airline operating environment.

The Company’s estimate of the recoverable amount of aircraft residual values is 15% of current market value of new aircraft, determined periodically, based on independent valuations and actual aircraft disposals during prior periods. Aircraft are depreciated over a useful life of 23 years from the date of manufacture to residual value.

Heavy Maintenance An element of the cost of an acquired aircraft is attributed, on acquisition, to its service potential, reflecting the maintenance condition of the engines and airframe.

For aircraft held under operating lease agreements, Ryanair is contractually committed to either return the aircraft in a certain condition or to compensate the lessor based on the actual condition of the airframe, engines and life-limited parts upon return. In order to fulfill such conditions of the lease, maintenance, in the form of major airframe overhaul, engine maintenance checks, and restitution of major life-limited parts, is required to be performed during the period of the lease and upon return of the aircraft to the lessor. The estimated airframe and engine maintenance costs and the costs associated with the restitution of major life-limited parts, are accrued and charged to profit or loss over the lease term for this contractual obligation, based on the present value of the estimated future cost of the major airframe overhaul, engine maintenance checks and restitution of major life-limited parts, calculated by reference to the number of hours flown or cycles operated during the year.

Ryanair’s aircraft operating lease agreements typically have a term of seven years, which closely correlates with the timing of heavy maintenance checks. The contractual obligation to maintain and replenish aircraft held under operating lease exists independently of any future actions within the control of Ryanair. While Ryanair may, in very limited circumstances, sub-lease its aircraft, it remains fully liable to perform all of its contractual obligations under the ‘head lease’ notwithstanding any such sub-leasing.

Both of these elements of accounting policies involve the use of estimates in determining the quantum of both the initial maintenance asset and/or the amount of provisions to be recorded and the respective periods over which such amounts are charged to income. In making such estimates, Ryanair has primarily relied on its own and industry experience, industry regulations and recommendations from Boeing; however, these estimates can be subject to revision, depending on a number of factors, such as the timing of the planned maintenance, the ultimate utilization of the aircraft, changes to government regulations and increases or decreases in estimated costs. Ryanair evaluates its estimates and assumptions in each reporting period and, when warranted, adjusts its assumptions, which generally impact maintenance and depreciation expense in the income statement on a prospective basis.

Tax Audits Income tax on the profit or loss for the year comprises current and deferred tax. Current tax payable on taxable profits is recognized as an expense in the period in which the profits arise using tax rates enacted or substantively enacted at the balance sheet date. Deferred tax is provided in full, using the balance sheet liability method on temporary differences arising from the tax basis of assets and liabilities and their carrying amount in the consolidated financial statements.

Social insurance, passenger taxes and sales taxes are recorded as a liability based on laws enacted in the jurisdictions to which they relate. Liabilities are recorded when an obligation has been incurred.

Ryanair reviews its tax obligations by jurisdiction regularly. There are many complexities and judgments in determining tax obligations due to the inherent complexity of tax law, the manner in which airline businesses are carried out whereby operations can begin and end in different jurisdictions and assumptions made about the timing and amount of individual balances to be included in financial statements and tax returns.

Ryanair has an internal tax group and takes professional advice on more complex matters in estimating its tax liabilities. Ryanair also deals extensively with revenue authorities in each jurisdiction in which it operates. Tax liabilities are based on the best estimate of the likely obligation at each reporting period. These estimates are subject to revision based on the outcome of tax audits and discussions with revenue authorities that can take several years to conclude.

–  –  –

The following table sets forth certain income statement data (calculated under IFRS) for Ryanair expressed

as a percentage of Ryanair’s total revenues for each of the periods indicated:

–  –  –

Profit after taxation. Ryanair recorded a profit on ordinary activities after taxation of €1,559.1 million in the 2016 fiscal year, as compared with a profit of €866.7 million in the 2015 fiscal year. This 79.9% increase was primarily attributable to a 15.6% increase in revenues due to a 17.5% increase in traffic, a stronger load factor (up 5 points to 92.8%), 11.5% fuel savings per passenger and a one off gain of €317.5 million on the sale of the Company’s 29.8% shareholding in Aer Lingus.

Scheduled revenues. Ryanair’s scheduled passenger revenues increased 16.6%, from €4,260.3 million in the 2015 fiscal year to €4,967.2 million in the 2016 fiscal year, primarily reflecting a 17.7% increase in the number of passengers booked from 90.6 million to 106.4 million reflecting increased passenger volumes on existing routes and the successful launch of new bases in Belfast, Berlin, Corfu, Gothenburg, Ibiza, Milan (Malpensa) and Santiago in the 2016 fiscal year. Booked passenger load factors increased to 92.8% in fiscal 2016 compared with 88.2% in fiscal 2015.

Passenger capacity during the 2016 fiscal year increased by 11.8% due to an increase in the average number of aircraft in the fleet. Scheduled passenger revenues accounted for 76.0% of Ryanair’s total revenues for the 2016 fiscal year, compared with 75.4% of total revenues in the 2015 fiscal year.

Ancillary revenues. Ryanair’s ancillary revenues, which comprise revenues from non-flight scheduled operations, in-flight sales and Internet-related services, increased 12.5%, from €1,393.7 million in the 2015 fiscal year to €1,568.6 million in the 2016 fiscal year, while ancillary revenues per booked passenger decreased to €14.74 from €15.39. Revenues from non-flight scheduled operations, including revenues from excess baggage charges, administration/credit card fees, sales of rail and bus tickets, priority boarding, reserved seating, accommodation, travel insurance and car rental increased 14.2% to €1,329.6 million from €1,164.4 million in the 2015 fiscal year. Revenues from in-flight sales increased 19.8%, to €153.4 million from €128.1 million in the 2015 fiscal year. Revenues from Internet-related services, primarily commissions received from products sold on Ryanair.com or linked websites, decreased 15.4%, from €101.2 million in the 2015 fiscal year to €85.6 million in the 2016 fiscal year. The overall increase in ancillary revenues reflects the solid performance of on-board sales and reserved seating offset by reduced travel insurance, a one-time benefit in the prior year comparative arising from the earlier loading of the schedules and the impact of being without a car hire provider for much of quarter 2, fiscal 2016.

The following table sets forth the components of ancillary revenues earned by Ryanair and each component

expressed as a percentage of total ancillary revenues for each of the periods indicated:

–  –  –

Pages:     | 1 |   ...   | 13 | 14 || 16 | 17 |   ...   | 36 |

Similar works:

«Black Youths in Predominantly White Suburbs: An Exploratory Study of Their Attitudes and Self-Concepts James A. Banks The Journal of Negro Education, Vol. 53, No. 1. (Winter, 1984), pp. 3-17.Stable URL: http://links.jstor.org/sici?sici=0022-2984%28198424%2953%3A1%3C3%3ABYIPWS%3E2.0.CO%3B2-G The Journal of Negro Education is currently published by Journal of Negro Education. Your use of the JSTOR archive indicates your acceptance of JSTOR's Terms and Conditions of Use, available at...»

«August 2010 STAGE 3 ARCHAEOLOGICAL ASSESSMENT Limebeer Pit, Part of Lots 14 and 15 Concession 2 W.H.S., Town of Caledon Regional Municipality of Peel, Ontario Submitted to: Mr. Sergio Carbone Lafarge Canada Inc. 7880 Keele Street, 3rd Floor Concord, Ontario L4K 4G7 Tel: (905) 738-7070 Fax: (905) 738-0224 REPORT PIF Number P001-577-2009 Report Number: 09-1136-1012-3000-R01 Distribution: 4 Copies Lafarge Canada Inc. 3 Copies Ministry of Tourism and Culture 2 Copies Golder Associates Ltd. STAGE 3...»

«Guide to Red Winemaking Written by Shea AJ Comfort Contributions by Tristan Johnson Olin Schultz Edited By Mike Theisen Phil Montalbano Goal of this Manual: To make Great wine at home on your first try It is highly recommended that this paper be read through completely before you start to make your wine. Wine-making is made up of a series of consecutive steps which build on and directly affect each other from the very beginning to the very end. In order to make the best wine possible you will...»

«2.0 DESCRIPTION OF THE PRECINCT This section is partially based on the NHQS CMP (2000) Section 5.5, but with additional information and amendments where new information has come to light in the preparation of this DACMP. Note that the boundaries of the Precincts have been altered in this study (refer to the Precinct Location Plan at the beginning of this Volume for the study boundaries). The text has been altered accordingly.2.1 PRECINCT BOUNDARIES The Hospital/Isolation Precinct occupies the...»

«Schroeder, L., Petrou, S., Patel, N., Hollowell, J., Puddicombe, D., Redshaw, M., Brocklehurst, P., The Birthplace in England Collaborative Group,., McCourt, C. & MacFarlane, A. (2011). Birthplace cost-effectiveness analysis of planned place of birth: individual level analysis Birthplace in England research programme (Report No. Final report part 5). Southampton: HMSO. City Research Online Original citation: Schroeder, L., Petrou, S., Patel, N., Hollowell, J., Puddicombe, D., Redshaw, M.,...»

«Noname manuscript No. (will be inserted by the editor) Premise Selection for Mathematics by Corpus Analysis and Kernel Methods Jesse Alama∗ · Tom Heskes∗∗ · Daniel K¨ hlwein∗∗ · Evgeni Tsivtsivadze∗∗ · u Josef Urban∗∗ the date of receipt and acceptance should be inserted later arXiv:1108.3446v2 [cs.LG] 12 Apr 2012 Abstract Smart premise selection is essential when using automated reasoning as a tool for large-theory formal proof development. A good method for premise...»


«Child Sexual Exploitation Operational Guidance for Staff September 2014 CONTENTS Page Introduction 1 What is sexual exploitation 1 Known aspects of CSE 2 Perpetrators 5 Identifying risk 5 What to do 7 What happens next 8 Information sharing 9 Appendix 1: CSE Risk Assessment Appendix 2: Flowchart guidance for professionals with concerns relating to CSE Appendix 3: Checklist of Vulnerability Factors Introduction The sexual exploitation of children and young people has been identified throughout...»

«YO TH TO U E G RG M ET U OOTI COME WITH US F S ST IN DE KY O G UT WELCOME! This is your guide to help you navigate through the exciting world of SKY! Keep this guide handy so you can check it whenever you need to.SKY ON DEMAND We’ve introduced some exciting changes and we can’t wait for you to experience them! Your SKY is packed full of cool features including SKY On Demand for customers with the Basic package or more. Have a go and explore hundreds of titles at your fingertips. WANT MORE...»

«Safe roads, reliable journeys, informed travellers Dartford-Thurrock River Crossing Charging Scheme Accounts 2013 2014 An executive agency of the Department for Transport Dartford-Thurrock River Crossing Charging Scheme Accounts 2013-2014 Presented to Parliament pursuant to Section 3 (1) (d) of the Trunk Road Charging Schemes (Bridges and Tunnels) (Keeping of Accounts) (England) Regulations 2003. November 2014 © Crown Copyright 2014 You may re-use this information (excluding logos) free of...»

«Paper 1485-2014 SAS Global Forum Measures of Fit for Logistic Regression Paul D. Allison, Statistical Horizons LLC and the University of Pennsylvania ABSTRACT One of the most common questions about logistic regression is “How do I know if my model fits the data?” There are many approaches to answering this question, but they generally fall into two categories: measures of predictive power (like R-square) and goodness of fit tests (like the Pearson chi-square). This presentation looks first...»

«Sermon #135 The New Park Street Pulpit 1 PRESUMPTUOUS SINS NO. 135 A SERMON DELIVERED ON SABBATH MORNING, JUNE 7, 1857, BY THE REV. C. H. SPURGEON, AT THE MUSIC HALL, ROYAL SURREY GARDENS. “Keep back Your servant also from presumptuous sins.” Psalm 19:13. ALL sins are great sins but yet some sins are greater than others. Every sin has in it the very venom of rebellion and is full of the essential marrow of traitorous rejection of God. But there are some sins which have in them a greater...»

<<  HOME   |    CONTACTS
2017 www.thesis.dislib.info - Online materials, documents

Materials of this site are available for review, all rights belong to their respective owners.
If you do not agree with the fact that your material is placed on this site, please, email us, we will within 1-2 business days delete him.