Ryanair(US:RYAAY)2024-06-27 11:30Financial Performance - Ryanair Group reported FY24 PAT of €1.92 billion, a 34% increase, with scheduled revenue rising 32% to €9.15 billion [282]. - Total FY24 revenue increased by 25% to €13.44 billion, with ancillary sales up 12% to €4.3 billion [282]. - The company reported a turnover of €13,444 million from taxonomy-eligible activities, which constitutes 100% of the total turnover [264]. - The total operating revenues for FY24 reached €13,444 million, with scheduled revenues of €9,145 million and ancillary revenues of €4,299 million [258]. - The company reported a revenue of €2.18 million, an increase from €2.07 million in the previous period, reflecting a growth of approximately 5.3% [267]. - The company plans to return approximately 25% of prior-year PAT to shareholders as ordinary dividends starting from FY25 [14]. - A maiden interim dividend of €0.175 per share was paid in February, with a final dividend of €0.178 per share expected after the 2024 AGM [15]. - Operating costs rose by 24% to €11.38 billion, primarily due to a 32% increase in fuel costs [283]. - The total operating expenses outside the scope of EU Taxonomy Regulation amounted to €10,968 million, highlighting significant operational costs [260]. Sustainability Initiatives - Ryanair aims to power 12.5% of its flights with Sustainable Aviation Fuel (SAF) by 2030, having secured 1,000 tonnes of SAF at Stansted in FY24 [229]. - The Group's carbon intensity improved to 65g CO₂ per passenger/km in FY24, down from 66g CO₂ per passenger/km in FY23 [224]. - Ryanair has secured 10% of its Sustainable Aviation Fuel (SAF) requirements for 2030, with a target of reaching 12.5% [30]. - The Group's ongoing cost reductions and cash management strategies have been effective, as evidenced during the Covid-19 crisis [209]. - Ryanair has secured access to 80% of its 2030 sustainability goal, with Sustainable Aviation Fuel (SAF) expected to account for 34% of emissions reduction [230]. - The company is actively monitoring jet fuel consumption by aircraft to comply with sustainability reporting obligations [263]. - The overall expenditure on sustainable aviation fuel usage is being tracked to align with technical screening criteria [260]. - The partnership with Trinity College Dublin's Sustainable Aviation Research Centre has been extended for another 5 years with a commitment of €2.5 million [232]. Operational Efficiency - The delivery of 48 Boeing 737-8200 "Gamechanger" aircraft increased the fleet to 146, which carry 4% more passengers and burn 16% less fuel [225]. - The company has ordered 300 Boeing 737-MAX-10 aircraft to support traffic growth to 300 million passengers per annum by FY34 [15]. - The fleet grew to 590 aircraft, including 48 Boeing 737-8200 "Gamechanger" aircraft, which allow for 4% more passengers and 16% less fuel consumption [26][39]. - Fuel costs for FY25 are over 70% hedged, securing significant price savings [286]. - The company is investing in new technology development, focusing on enhancing user experience and operational efficiency [267]. Customer Satisfaction - Ryanair's Customer Satisfaction (CSAT) score for FY24 was 85%, exceeding the internal target of 82.5% despite operational disruptions [244]. - The company achieved a 95% customer satisfaction rate, maintaining consistent performance across its service offerings [267]. - Ryanair's customer satisfaction (CSAT) scores improved, and passengers saved over €5 billion by choosing Ryanair over higher fare competitors [21]. Growth and Expansion - Traffic grew by 9% to almost 184 million passengers, while average fares increased by 21% to just under €49.80 [282]. - The company opened 5 new bases and over 200 new routes for Summer 2024, supporting growth plans [286]. - The company is exploring potential acquisition opportunities to bolster its product portfolio and enhance competitive positioning [267]. - Market expansion efforts are underway, targeting new geographic regions to increase market share and customer base [267]. - Ryanair has signed multi-year pay agreements with most union partners and recruited over 4,000 new employees [36]. Governance and Compensation - The Group CEO's base salary for FY24 is set at €1.2 million, with a maximum annual bonus reduced to 50% of basic pay [287]. - The Group CEO's total compensation for FY24 amounted to €1.788 million, a 93% increase compared to FY23 [293]. - The average percentage change in employee remuneration from FY24 compared to FY23 was an increase of approximately 7% [299]. - Non-Executive Director compensation was reviewed in 2023, resulting in a structured base fee of €75,000 per annum, with additional fees for specific roles [296]. - The Directors' Remuneration Policy received 73% approval at the 2023 AGM, indicating shareholder support for the company's compensation practices [324]. Risk Management - The Group's risk management program includes regular monitoring of key risks by the Audit Committee and Management Committee [200]. - The internal audit function has unrestricted access to the Audit Committee, ensuring oversight of financial, IT, and business processes [200].