Interim Results

Ryanair Holdings PLC 7 November 2000 RYANAIR ANNOUNCES A SHARP JUMP IN PROFITS FOR THE HALF YEAR ENDED SEPTEMBER 30TH 2000 Traffic Grows by 33%, Profits Rise by 49% Ryanair, Europe's Largest Low Fares Airline, today announced sharply higher results for the half year ended 30th September 2000. Passenger traffic grew by 33% to 3.9 million, an increase of almost 1 million over the same period last year. Average yields also increased due to the longer average sector lengths on the 10 new routes and the strength of Sterling against the Euro. As a result total revenues grew by 37% to Euro265.9m. Continued tight cost controls (particularly in the area of sales and distribution due to the successful expansion of RYANAIR.COM) meant that total operating costs increased at a slightly lower rate than revenues, despite the launch of 10 new routes during the half year. Consequently profit after tax has risen sharply by 49.4% to Euro63.4m. Earnings per share grew by 43% to18.08 cents per share. Summary Table of Results (Irish GAAP) - in Euro's Half Year Ended: September 30, September 30, % 2000 1999 Increase Passengers 3.85m 2.89m 33% Revenue Euro265.9m Euro194.5m 37% Profit after tax Euro63.4m Euro42.4m 49% Basic EPS (Euro 18.08 12.66 43% Cents) Announcing these results in London this morning Ryanair's, Chief Executive Michael O'Leary said; 'These strong results are a tribute to the outstanding team of people in Ryanair. Through their efforts in the first half of the year, we have opened up 10 new routes, added 5 new Boeing 737-800 aircraft, and carried almost 1 million additional people. To have done so (with reduced costs and increased profitability) in an adverse trading environment characterised by, intense competition, and higher fuel prices is an outstanding performance. These results underline the robustness of Ryanair's superior earnings model at a time when almost all of our principal European competitors are reporting downturns in profitability or losses. 'Our fleet has now grown to 31 aircraft, 10 of which are new Boeing 737-800 series aircraft which, unlike most other airlines, we own outright. These aircraft are delivering lower operating costs, whilst enabling us to carry more passengers per flight and increase our traffic growth this year by slightly more than our target of 25%. Our disciplined approach to cost control is reflected by the fact our financing costs have been locked away at low rates for the next 12 years, whilst our fuel costs continue to be substantially hedged on a rolling 12 month basis. 'The most dramatic change in our cost base this year has been the rapid growth of RYANAIR.COM. Unlike other low fare imitators in Europe, Ryanair last year sold over 60% of our seats through traditional travel agents and shouldered the heavy cost burdens of CRS fees and Travel Agent commissions. The other low fare imitators only sold direct (over the internet or through call centres), which meant that they already had a much lower cost of distribution. Conversely this means that there was far less of an opportunity for these other airlines to significantly reduce costs by moving a large proportion of their sales from call centres to the internet. 'By contrast we launched RYANAIR.COM in January of this year. During the past 8 months our proportion of sales through travel agents has fallen from 60% to just under 10% in recent weeks. The success of RYANAIR.COM enabled us to reduce commissions payable on these remaining sales from 7.5% to 5% and allowed us to eliminate expensive CRS distribution costs by terminating our participation in the Galileo CRS on the 1st of August last. The cost savings which have accrued to Ryanair as a result of this massive reduction in travel agency distribution have now been realised. 'These savings have enabled Ryanair to offer even more lower fares directly through the internet which has stimulated our growth in passenger volumes on both new and existing routes. RYANAIR.COM is the only internet site to guarantee the lowest airfares on every route we fly, even on routes where we compete with other low fare imitators such as EasyJet (Glasgow), GO (Venice) and Buzz (Hamburg). 'The success of RYANAIR.COM can be seen in these results where despite the fact that scheduled revenues have risen by 38% in the first half, our marketing and distribution costs as a percentage of scheduled revenues have actually declined by 31%. 'RYANAIR.COM is now the most successful travel internet site in Europe. It takes more bookings than any other internet airline or travel site. It is more popular than EasyJet, and is light years ahead of other competitors such as Aer Lingus who still don't have an online ticket sales service. With 90% of our sales now being sold directly to the public, Ryanair has eliminated the expensive middleman, enabling us to offer even lower fares at lower costs and this underlines both the sustainability and profitability of Ryanair's low fares formula. 'Ryanair is now by some considerable distance the largest low fares airline in Europe. We are in discussions with six airports in Europe who want us to establish new bases, and with over 20 possible new destinations all of whom are offering us efficient facilities and low costs. The only exception to this strong growth remains Ireland. In Ireland the Minister for Transport continues to pursue her failed policy of protecting the government owned airport monopoly. 'It has never been cheaper for UK people to visit Ireland. It has also never been more difficult. The Irish government's policy of protecting its airport monopoly has led to higher prices, escalating costs, awful facilities, and stagnating traffic. Monopolies don't work. Competition does. It is about time that the Irish Government changed its failed policy and opened up Dublin Airport to competition. Ryanair has offered to build and pay for its own terminal and in return we would open up at least ten new low fare European routes providing a major boost to Irish tourism, employment and the economy generally. 'In the meantime Ryanair continues to grow strongly in the UK and Europe. As we have highlighted in recent quarters these results are excellent, but are somewhat artificially enhanced by the continuing strength of Sterling against the Euro and the success of Ryanair's fuel hedging policies. As we have also highlighted in previous quarters we believe that over the medium term Sterling will weaken and fuel prices will rise, both of which will have a somewhat negative impact on our revenues and costs. However, the huge cost savings which have been achieved this year with the success of RYANAIR.COM, and the introduction of more cost efficient Boeing 737-800's, allied to the fact that a significant proportion of our aircraft fleet will go ex-depreciation next year means that Ryanair remains well positioned to maintain our margins. 'We expect average fares to fall for the next couple of years while competition remains intense in Europe. Unlike most of our competitors, and certainly some of our low fare imitators, our operating costs continue to fall in line with the expected decline in average air fares. We remain determined to stick to our plan of doubling our passenger volumes over the next 4 to 5 years. As long as we remain disciplined in the roll out of the Ryanairs successful low fares model, then we believe that we are well positioned to deliver superior returns for our staff, and our shareholders, whilst continuing to guarantee the lowest fares and huge savings for all of our customers.' For results and further information please contact: Howard Millar Pauline McAlester Ryanair Holdings Plc Murray Consultants www.Ryanair.com Tel: 353-1-8121212 Tel:353-1-6633332 Certain of the information included in this release is forward looking and is subject to important risks and uncertainties that could cause actual results to differ materially. It is not reasonably possible to itemise all of the many factors and specific events that could affect the outlook and results of an airline operating in the European economy. Among the factors that are subject to change and could significantly impact Ryanair's expected results are the airline pricing environment, fuel costs, competition from new and existing carriers, market prices for replacement aircraft, costs associated with environmental, safety and security measures, actions of the Irish, U.K., European Union ('EU') and other governments and their respective regulatory agencies, fluctuations in currency exchange rates and interest rates, airport access and charges, labour relations, the economic environment of the airline industry, the general economic environment in Ireland, the UK and Continental Europe, the general willingness of passengers to travel and other economics, social and political factors. Ryanair is Europe's largest low fares airline with 45 low fare routes across 11 countries. Ryanair has a fleet of 30 Boeing 737's, orders for up to a further 35 new 737-800's which will be delivered over the next 4 years. Ryanair currently employs a team of over 1,500 people and will fly 7 million passengers in the current year. www.RYANAIR.COM was launched in January 2000 and is already Europe's largest travel website. As Ryanair's low fares network continues to successfully expand in Europe, the growth in business and bookings at RYANAIR.COM continues to grow exponentially. Ryanair Holdings plc and Subsidiaries Consolidated Profits and Loss Accounts in accordance with UK and Irish GAAP (unaudited) Half Half Quarter Quarter Year Year Ended Ended Ended Ended Sept 30, Sept 30, Sept 30, Sept 30, 2000 1999 2000 1999 Euro'000 Euro '000 Euro'000 Euro'000 Operating Revenues Scheduled revenues 134,606 99,324 237,874 172,912 Ancillary revenues 16,272 11,181 28,045 21,588 Total operating revenues continuing operations 150,878 110,505 265,919 194,500 Operating expenses Staff costs 15,720 12,169 30,542 23,574 Depreciation and amortisation 13,504 10,849 26,794 21,144 Other operating expenses Fuel & Oil 16,898 11,277 30,268 21,069 Maintenance, materials and 5,660 4,136 10,758 7,919 repairs Marketing and distribution 4,644 8,493 15,681 16,556 costs Aircraft rentals 2,634 861 5,078 1,431 Route charges 10,286 7,329 18,482 13,251 Airport and Handling charges 18,456 12,216 33,662 21,582 Other 10,134 7,743 19,446 15,237 Total operating expenses 97,936 75,073 190,711 141,763 Operating profit-continuing 52,942 35,432 75,208 52,737 operations Other income/(expenses) Interest receivable and 5,081 1,840 8,392 3,229 similar income Interest payable and similar (2,666) (1,011) (4,381) (1,384) charges Foreign exchange 787 131 (354) (136) gains/(losses) Total other income/(expenses) 3,202 960 3,657 1,709 Profit on ordinary activities before taxation 56,144 36,392 78,865 54,446 Tax on profit on ordinary (10,872) (7,961) (15,506) (12,042) activities Profit for the financial 45,272 28,431 63,359 42,404 period Earnings per ordinary share* Basic(Euro cents) 12.91 8.49 18.08 12.66 Diluted (Euro cents) 12.76 8.49 17.87 12.57 Number of ordinary shares (in 000's)* Basic 350,570 334,850 350,412 334,850 Diluted 354,800 334,850 354,640 337,424 * The company implemented a 2:1 share split on February 28th, 2000. Share capital and earnings per share figures have been restated to give effect to the share split. Ryanair Holdings plc and Subsidiaries Consolidated Balance Sheets in accordance with UK and Irish GAAP September March 30, 2000 31,2000 Euro'000 Euro'000 (unaudited) Fixed Assets Tangible assets 464,855 315,032 Financial assets 36 36 Total Fixed Assets 464,891 315,068 Current Assets Cash and liquid 425,366 355,248 resources Accounts receivable 21,191 21,974 Other assets 8,883 6,478 Inventories 13,464 13,933 Total current assets 468,904 397,633 Total assets 933,795 712,701 Current liabilities Accounts payable 24,759 22,862 Accrued expenses and other 118,380 107,445 Liabilities Current maturities of long term debt 15,035 9,567 Short term borrowings 4,080 3,780 Total current 162,254 143,654 liabilities Other liabilities Provisions for liabilities and charges 22,307 15,279 Long Term debt 244,007 112,411 266,314 127,690 Shareholder's funds - equity Called -up share capital 8,903 8,892 Share Premium Account 248,593 248,093 Profit and loss account 247,731 184,372 Shareholder's funds - 505,227 441,357 equity Total liabilities and shareholders' funds 933,795 712,701 Ryanair Holdings plc and Subsidiaries Consolidated Cashflow Statements in Accordance with UK and Irish GAAP (unaudited) Half Half Year Year ended ended Sept 30, Sept 30, 2000 1999 Euro'000 Euro'000 Net cash inflow from operating 117,147 78,218 activities Returns on investments and servicing of finance 3,554 1,687 Taxation (12,096) (14,947) Capital expenditure (including aircraft deposits) (176,363) (90,094) Net cash inflow before financing and use of liquid resources (67,758) (25,136) Financing 137,576 101,985 (Increase) in liquid resources (72,360) (58,193) Decrease/(Increase)in cash (2,542) 18,656 Analysis of movement in liquid resources Liquid resources at beginning of 334,149 138,039 year 72,360 58,193 Increase in period Liquid resources at end of period 406,509 196,232 Analysis of movement in cash At beginning of year 17,319 16,663 Net cash outflow/(inflow) (2,542) 18,656 Net cash at end of period 14,777 35,319 Ryanair Holdings plc and Subsidiaries Consolidated Statement of Changes in Shareholders' Funds - Equity in accordance with UK and Irish GAAP (unaudited) Share Profit Ordinary Premium and shares account loss Total account Euro'000 Euro'000 Euro'000 Euro'000 Balance at April 1, 8,892 248,093 184,372 441,357 2000 Issue of ordinary equity shares (net 11 500 0 511 of issue costs) Profit for the 0 0 63,359 63,359 period ______ _______ ______ ______ Balance at September 30, 2000 8,903 248,593 247,731 505,227 Ryanair Holdings plc and Subsidiaries Consolidated Profit and Loss Account in Accordance with US GAAP (unaudited) Quarter Quarter Half Half Year Year Ended Ended Ended Ended Sept Sept Sept Sept 30,2000 30,1999 30,2000 30,1999 Euro'000 Euro'000 Euro'000 Euro'000 Operating Revenues Scheduled revenues 134,606 99,324 237,874 172,912 Ancillary revenues 16,272 11,181 28,045 21,588 Total operating revenues - continuing operations 150,878 110,505 265,919 194,500 Operating expenses Staff costs 15,570 12,118 30,193 23,472 Depreciation and amortisation 13,308 10,366 26,308 20,166 Other operating expenses Fuel & Oil 16,898 11,277 30,268 21,069 Maintenance, materials and 5,660 4,136 10,758 7,919 repairs Marketing and distribution costs 4,644 8,493 15,681 16,556 Aircraft rentals 2,634 861 5,078 1,431 Route charges 10,286 7,329 18,482 13,251 Airport and Handling charges 18,456 12,216 33,662 21,582 Other 10,112 7,721 19,402 15,194 Total operating expenses 97,568 74,517 189,832 140,640 Operating profit - continuing 53,310 35,988 76,087 53,860 operations Other income/(expenses) Interest receivable and similar 5,081 1,840 8,392 3,229 income Interest payable and similar (2,666) (1,011) (4,381) (1,384) charges Foreign exchange gains/(losses) (146) (1,747) 1,185 (584) Total other income/(expenses) 2,269 (918) 5,196 1,261 Profit on ordinary activities before taxation 55,579 35,070 81,283 55,121 Tax on profit on ordinary (10,674) (7,443) (15,991) (11,933) activities Net Income 44,905 27,627 65,292 43,188 Net Income per ADS* Basic (Euro cents) 64.05 41.25 93.16 64.49 Diluted (Euro cents) 63.28 41.25 92.05 64.00 Weighted Average number of shares* Basic 350,570 334,850 350,412 334,850 Diluted 354,800 334,850 354,640 337,424 * The Company implemented a 2:1 share split on February 28th, 2000. Share capital and earnings per hare figures have been restated to give effect to the share split. (Each ADS represents five ordinary shares) Ryanair Holdings plc and Subsidiaries Summary of significant differences between UK, Irish and US generally accepted accounting principles (unaudited) (A) Net Income under US GAAP Quarter Quarter Half Half Ended Ended Year Year Ended Ended Sept Sept Sept Sept 30, 30, 30, 30, 2000 1999 2000 1999 Euro'000 Euro'000 Euro'000 Euro'000 Profit as reported in the consolidated profit and loss accounts and in accordance with UK and Irish GAAP 45,272 28,431 63,359 42,404 Adjustments Pension 70 44 128 89 Unrealised (losses)/gains on forward exchange contracts (933) (1,878) 1,539 (448) Employment grants 80 22 221 43 Basis of accounting for August 1996 transaction 127 373 307 757 Basis of accounting for aircraft acquired from 69 110 179 221 Northill Limited Darley Investments Limited 22 22 44 43 Share option compensation 0 (15) 0 (30) expense Taxation effect of above 198 518 (485) 109 adjustments ______ ______ ______ ______ Net income under US GAAP 44,905 27,627 65,292 43,188 (B) Consolidated Cashflow Statements in accordance with US GAAP Half Half Year Year Ended Ended Sept Sept 30, 30, 2000 1999 Euro'000 Euro'000 Cash Inflow from operating activities 108,604 64,959 Cashflow from investing (252,603) (94,543) activities Cashflow from financing 137,876 110,947 activities (Decrease)/Increase in cash and cash equivalents (6,123) 81,363 Cash and cash equivalents at beginning of period 121,430 97,704 Cash and cash equivalents at end of period 115,307 179,067 Cash and cash equivalents under US GAAP 115,307 179,067 Deposits with a maturity of between three and six months 310,059 65,339 Cash and liquid resources under UK and Irish GAAP 425,366 244,406 Ryanair Holdings plc and Subsidiaries Summary of significant differences between UK, Irish and US generally accepted accounting principles (continued) (unaudited) (C) Shareholders' Funds Sept 30, Sept 30, equity 2000 1999 Euro'000 Euro'000 Shareholders' equity as reported in the consolidated balance 505,227 293,368 sheets (UK and Irish GAAP) Adjustments: Pension 1,051 649 Unrealised (losses)/gains on forward exchange (1,075) 693 contracts Employment grants (1,113) (627) Basis of accounting for August 1996 transactions (1,224) (2,771) Basis of accounting for aircraft acquired from 0 (400) Northill Limited Darley Investments (459) (546) Limited Share option compensation 0 25 expense Investments 885 2,513 Tax effect of adjustments 748 406 Shareholders' equity as _______ _______ adjusted to accord with 504,040 293,310 US GAAP Opening shareholders' 439,340 249,913 equity under US GAAP (1,103) 209 Investments Net income in accordance with US GAAP 65,292 43,188 Stock issued for cash 511 0 Closing shareholder's _______ _______ equity under US GAAP 504,040 293,310 Ryanair Holdings plc Management Discussion and Analysis of Results Summary Quarter Ended September 30, 2000 Profit after tax has increased by 59% to Euro45.3m, compared to Euro28.4m in the previous quarter ended September 30, 1999. Total Operating Revenues, grew by 37% to Euro150.9m whilst passenger volumes increased by 34% to 2.2m. Total Operating Expenses increased by 30% to Euro97.9m, due to the increased level of activity, and the increased costs, primarily staff, fuel and airport & handling costs, associated with the growth of the airline. Profit before Tax has increased by 54% to Euro56.1m. The effective Corporation Tax rate for the quarter was 19% compared to 22% for the previous year, and primarily reflects the impact of the decline in the headline rate of corporation tax in Ireland. Half Year ended September 30,2000 Profit after tax has increased by 49% to Euro63.4m, compared to Euro42.4m in the previous half year ended September 30, 1999. Total Operating Revenues grew by 37% to Euro265.9 whilst passengers volumes have increased by 33% to 3.9m. Total Operating Expenses increased by 35% to Euro190.7m due to the increased level of activity, and the increased costs, primarily staff, fuel and airport & handing costs associated with the growth of the airline. Profit before Tax has increased by 45% to Euro78.9m. The effective Corporation Tax rate for the period was 20% compared to 22% for the previous six months. Balance Sheet Cash and Liquid Resources have increased from Euro355.2m at March 31, 2000 to Euro425.4m at September 30, 2000, reflecting the increased cash flows from the profitable trading performance. During the period the company incurred capital expenditure of Euro176.4m primarily financed by an increase in the level of long term debt. Shareholder's Funds at September 30, 2000 have increased to Euro505.2m, compared to Euro441.4m at March 31, 2000. Detailed Discussion and Analysis - Quarter Ended September 30, 2000 Profit after tax has increased by 59% to Euro45.3m driven by strong growth in passenger volumes and continued tight cost control. Operating margins have, as a result, increased by 3% to 35%. Operating Profit increased by 49% to Euro52.9m compared to the quarter ended September 30, 1999. Profit before tax increased by 54%, which is higher than the percentage increase in Operating Profit due to the increased net interest receivable. Total Operating Revenues increased by 37% to Euro150.9m whilst passenger volumes increased by 34% to 2.2m. Scheduled Passenger Revenues increased by 36% to Euro134.6m, reflecting a 34% increase in passenger volumes, the successful launch of ten new routes, and the positive impact on average fares of the strength of sterling to the Euro. Furthermore, the success of Ryanair.com which is a low cost distribution network via the internet, generated substantial savings which were passed on to passengers in the form of lower average fares, and in turn further stimulated passenger volumes. Ancillary Revenues increased by 46% to Euro16.3m, which is higher than the growth in passenger volumes, and reflects the successful growth of alternative revenue streams to compensate for the cessation of duty free on July 1, 1999. Total Operating Expenses increased by 30% to Euro97.9m due to the increased level of activity, and the increased costs primarily staff, fuel and airport & handling costs associated with the growth of the airline. Staff costs have increased by 29% to Euro15.7m. This increase reflects an 18% increase in average employee numbers to 1,509. Pilots, who earn higher than the average salary, accounted for 29% of the increase in employment. Staff costs also rose due to the impact of pay increases granted which were between 3% to 5.5%. Depreciation and Amortisation increased by 24% to Euro13.5m due to an increase in the number of aircraft owned from 26 to 31 and the amortisation of capitalised maintenance costs. Fuel costs rose by 50% to Euro16.9m due to a 24% increase in the number of sectors flown, an increase in the average sector length, and an increase in the average cost per gallon of fuel. Maintenance costs increased by 37% to Euro5.7m reflecting an increase in the size of the fleet operated, an increase in the number of flight hours, and the increased line maintenance costs due to the continued expansion of our Stansted base. Marketing and Distribution Costs decreased by 45% to Euro4.6m due to a combination of, an increase in the level of direct bookings via the internet, a 33% reduction in the commission rate paid to travel agents, the termination of the distribution agreement with Galileo, partly offset by higher marketing costs associated with the promotion of Ryanair.com and the launch of ten new routes. Aircraft Rental Costs increased by Euro1.8m to Euro2.6m reflecting the need to rent additional seat capacity during the quarter. Route Charges increased by 40% to Euro10.3m due to an increase in the number sectors flown, and an increase in the average sector length. Airport and Handling Charges increased by 51% to Euro18.5m due to an increase in the number of passengers flown, the impact of increased airport and handling charges primarily at Dublin and Stansted airports, and the adverse impact of the strength of Sterling to the Euro, offset by, lower charges on our new European routes. Other Expenses increased by 31% to Euro10.1m reflecting the increased ancillary product costs arising from the change of product mix, post the cessation of duty free. Operating Profits have increased by 49% to Euro52.9m due to the reasons outlined above. Interest Receivable increased by Euro3.2m to Euro5.1m reflecting the strong growth in cash resources arising from the profitable trading performance during the quarter. Interest Payable increased by Euro1.7m to Euro2.7m due to the increased level of debt arising from the acquisition of five new aircraft. Taxation increased in the quarter by Euro2.9m to Euro10.9m whilst the Corporation Tax rate declined to 19% compared to 22% in the previous quarter due to the reduction in the headline rate of Corporation Tax in Ireland. Detailed Discussion and Analysis - Half Year ended September 30, 2000 Profit after tax has increased by 49% to Euro63.4m driven by strong growth in passenger volumes and continued tight cost control. Operating margins have increased by 1% to 28%. Operating Profit increased by 43% to Euro75.2m compared to the half year ended September 30, 1999. Profit before tax increased by 45% Euro78.9m, which is higher than the percentage increase in Operating Profit due to net interest receivable increasing by Euro2.2m to Euro4.0m. Total Operating Revenues increased by 37% to Euro265.9m whilst passenger volumes increased by 33% to 3.9m. Scheduled Passenger Revenues increased by 38% to Euro237.9m primarily due to a combination of increased passenger numbers, and the positive impact on average fares of the strength of Sterling to the Euro. Ancillary Revenues increased by 30% to Euro28.0m, which is lower than the growth in passenger volumes, due to a reduction in the average spend per passenger post the cessation of duty free on July 1,1999, being offset by strong growth in revenues from other ancillary activities. Total Operating Expenses increased by 35% to Euro190.7m due to the increased level of activity, and the increased costs primarily staff, fuel and airport & handling costs associated with the growth of the airline. Staff costs have increased by 30% to Euro30.5m. This increase reflects an 18% increase in average employee numbers to 1,466. Pilots, who earn a higher than the average salary, accounted for 27% of the increase in employment. Staff costs also rose due to the impact of pay increases granted which were between 3% to 5.5%. Depreciation and Amortisation increased by 27% to Euro26.8m due to an increase in the number of aircraft owned from 25 to 31 and the amortisation of capitalised maintenance costs. Fuel costs rose by 44% to Euro30.3m due to a 24% increase in the number of sectors flown, an increase in the average sector length, and an increase in the average cost per gallon of fuel. Maintenance costs increased by 36% to Euro10.8m reflecting an increase in the size of the fleet operated, an increase in the number of flight hours, and the increased line maintenance costs due to the continued expansion of our Stansted base. Marketing and Distribution Costs decreased by 5% to Euro15.7m due to a combination of, an increase in the level of direct bookings, a 33% reduction in the commission rate paid to travel agents, the termination of the distribution agreement with Galileo on August 1, 2000, partly offset by higher marketing costs associated with the promotion of Ryanair.com and the launch of ten new routes. Aircraft Rental Costs increased by Euro3.6m to Euro5.1m reflecting the need to rent additional seat capacity during the period. Route Charges increased by 39% to Euro18.5m due to an increase in the number sectors flown, and an increase in the average sector length. Airport and Handling Charges increased by 56% to Euro33.7m due to an increase in the number of passengers flown, the impact of increased airport and handling charges primarily at Dublin and Stansted airports, and the adverse impact of the strength of Sterling to the Euro, offset by, lower charges on our new European routes. Other Expenses increased by 28% to Euro19.4m slightly less than the growth in ancillary revenues. Operating Profits have increased by 43% to Euro75.2m due to the reasons outlined above. Interest Receivable increased by Euro5.2m to Euro8.4m reflecting the strong growth in cash resources arising from the profitable trading performance during the quarter. Interest Payable increased by Euro3.0m to Euro4.4m due to the increased level of debt arising from the acquisition of five new aircraft. Taxation increased in the period by Euro3.5m to Euro15.5m whilst the Corporation Tax rate declined to 20% compared to 22% in the previous period due to the reduction in the headline rate of Corporation Tax in Ireland. The Company's Balance Sheet continues to strengthen due to the strong growth in profits.Tangible fixed assets increased to Euro464.8m from Euro315.0m principally as a result of the acquisition of five new Boeing 737-800 aircraft. At September 30,2000 the Company had Euro425.4m in Cash and Liquid resources, an increase of Euro70.1m compared to March 31, 2000. Total Debt has increased since March 31, 2000 by Euro137.1 to Euro259.0m to part fund the additional aircraft acquired during the period. Shareholder's Funds at September 30, 2000 have increased to Euro505.2m compared to Euro441.4m at March 31, 2000. Notes to the Financial Statements 1. Accounting Policies The accounting policies followed in the preparation of these consolidated financial statements for the half year ended September 30, 2000 are consistent with those followed in the financial year ended March 31, 2000. 2. Approval of the Financial Statements The Audit Committee approved the consolidated financial statements for the Quarter and Half Year ended September 30, 2000 on November 6, 2000. 3. Generally Accepted Accounting Policies The Management Discussion and Analysis of Results for the Quarter and Half Year ended September 30, 2000 are based on the results reported under Irish and UK GAAP. 4. Nationality Declaration The company has undertaken to notify the shareholders twice yearly of the percentage of Ordinary shareholders held by EU Nationals. Accordingly, on November 4, 2000 not less than 52% of the ordinary shares were held by EU Nationals. Independent review report to Ryanair Holdings plc Introduction We have been instructed by the company to review the financial information set out on pages 1 to 4 of the Financial Results and we have read the other information contained in the interim report and considered whether it contains any apparent misstatements or material inconsistencies with the financial information. Directors' responsibilities The interim report, including the financial information contained therein, is the responsibility of, and has been approved by the directors. The Listing Rules of the Irish Stock Exchange require that the accounting policies and presentation applied to the interim figures should be consistent with those applied in preparing the preceding annual accounts except where any changes, and the reasons for them, are disclosed. Review work performed We conducted our review in accordance with guidance contained in Bulletin 1999/4 issued by the Auditing Practices Board. A review consists principally of making enquiries of management and applying analytical procedures to the financial information and underlying financial data and based thereon, assessing whether the accounting policies and presentation have been consistently applied unless otherwise disclosed. A review excludes audit procedures such as tests of controls and verification of assets, liabilities and transactions. It is substantially less in scope than an audit performed in accordance with Auditing Standards and therefore provides a lower level of assurance than an audit. Accordingly we do not express an audit opinion on the financial information. Review conclusion On the basis of our review we are not aware of any material modifications that should be made to the financial information as presented for the six months ended 30 September 2000. KPMG Chartered Accountants 6 November 2000

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