Fuel and oil Ryanairs fuel and oil costs per ASM increased by 157 while in

Fuel and oil ryanairs fuel and oil costs per asm

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Fuel and oil . Ryanair‘s fuel and oil costs per ASM increased by 15.7%, while in absolute terms, these costs increased by 29.9% from €1,227.0 million in the 2011 fiscal year to €1,593.6 million in the 2012 fiscal year, in each case after giving effect to the Company‘s f uel hedging activities. The 29.9% increase reflected an 18.2% increase in average fuel prices paid, the impact of a 10.5% increase in the number of hours flown and a 6.1% increase in the average sector length. Fuel and oil costs include the direct cost of fuel, the cost of delivering fuel to the aircraft, and aircraft de-icing costs. The average fuel price paid by Ryanair (calculated by dividing total fuel costs by the number of U.S. gallons of fuel consumed) increased 18.2% from €1.76 per U.S. gallon in th e 2011 fiscal year to €2.08 per U.S. gallon in the 2012 fiscal year, in each case after giving effect to the Company‘s fuel hedging activities. Maintenance, materials and repairs . Ryanair‘s maintenance, materials and repair expenses, which consist primarily of the cost of routine maintenance and the overhaul of spare parts, decreased 1.3% on a per- ASM basis, while in absolute terms these expenses increased by 10.8% from €93.9 million in the 2011 fiscal year to €104.0 million in the 2012 fiscal year. The inc rease in absolute terms during the fiscal year reflected the additional costs arising from increased level of activity and the opening of new bases. Aircraft rentals. Aircraft rental expenses amounted to €90.7 million in the 2012 fiscal year, a 6.7% decre ase from the €97.2 million reported in the 2011 fiscal year, reflecting the lower lease costs on newer aircraft and the handback of 3 aircraft due to the maturity of leases. Route charges and airport and handling charges. Ryanair‘s route charges per ASM de creased 0.1% in the 2012 fiscal year, while airport and handling charges per ASM increased 0.3%. In absolute terms, route charges increased 12.2%, from €410.6 million in the 2011 fiscal year to €460.5 million in the 2012 fiscal year, primarily as a result of the 5.8% increase in sectors flown. In absolute terms, airport and handling charges increased 12.6%, from €491.8 million in the 2011 fiscal year, to €554.0 million in the 2012 fiscal year, reflecting the overall growth in passenger volumes and higher charges at Dublin and Stansted airports, partially offset by lower average costs at Ryanair‘s newer airports and bases. Marketing, distribution and other expenses. Ryanair‘s marketing, distribution and other operating expenses, including those applicable to the generation of ancillary revenues, decreased 4.0% on a per-ASM basis in the 2012 fiscal year, while in absolute terms, these costs increased 7.8%, from €167.0 million in the 2011 fiscal year to €180.0 million in the 2012 fiscal year, with the overall in crease primarily reflecting the higher level of activity and increased onboard product costs reflecting the higher level of sales.

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