Ryanair Soars High: Forecasts Record Annual Profit and Promises Regular Dividend

Ryanair, Europe's largest airline by passenger numbers, has forecasted a record annual profit and has promised to pay investors a regular dividend for the first time. This comes after fares soared 24% during its key summer season.

Record-Breaking Profit

Ryanair expects an after-tax profit of between 1.85 billion and 2.05 billion euros for the year to end March. This easily beats its previous record of 1.45 billion euros in 2018. The low-cost pioneer earned 2.18 billion euros in the six months to the end of September, the first half of its financial year, 59% ahead of its previous record for the period, set last year.

Soaring Fares and Passenger Numbers

Traffic in the period was up 11% to 105 million passengers while fares were 24% higher than last year. This significant increase in fares and passenger numbers has contributed to the record-breaking profit forecast.

A Promise of Regular Dividend

In a first for the airline, Ryanair has announced its maiden ordinary dividend of 400 million euros. This will be split between an interim payment of 200 million euros in February and a final dividend of 200 million euros in September of next year. For subsequent financial years under a new dividend policy, Ryanair plans to return approximately 25% of the after-tax profit posted the previous year by way of ordinary dividends. This promise of a regular dividend is a significant milestone for the airline and its investors.

Conclusion

Ryanair's forecast of a record annual profit and the promise of a regular dividend mark a significant turning point for the airline. The soaring fares and increasing passenger numbers demonstrate the airline's strong performance and resilience in a challenging market. With its new dividend policy, Ryanair is set to provide a regular return to its investors, further solidifying its position as a leading player in the aviation industry.