Ryanair plans regular dividend for first time as it forecasts record annual profit
Ryanair forecast a record annual profit and outlined plans to pay a regular dividend for the first time as the airline cashed in on its busiest-ever summer and a rise in airfares. Europe’s largest airline by passenger numbers on Monday forecast a full-year net profit between E1.85b and E2.05b for its financial year ending in March, which would beat a record set in 2018. The airline became the latest to report booming profits over the summer as the industry rebounded from the impact of the Covid-19 pandemic thanks to strong demand for travel and high ticket prices. Rivals including British Airways owner IAG, easyJet and Air France-KLM have all reported record summer earnings in recent weeks. Ryanair underlined its recovery by announcing plans to pay shareholders a regular dividend for the first time, starting with E400m over the next year. It pledged to then return about 25% of the prior-year profit after tax to shareholders. The airline paid out more than €6bn to shareholders between 2008 and 2020, but only through buybacks or special dividends. CFO Neil Sorahan said the switch to regular payouts reflected the “maturity” of Ryanair’s business, following years of high capital spending before the pandemic as it built its dominant position in the European market. As carriers across Europe report record profits, the biggest question facing the industry is how long the boom times can continue, and whether demand for travel will remain strong into next year. Sorahan said Christmas looked “strong” and the airline was “pleased” with early sales for summer 2024. But Ryanair cautioned that its financial guidance was “highly dependent on the absence of any unforeseen adverse events, for example such as Ukraine or Gaza”. The airline said it faced a “significantly” higher fuel bill — up €1.3bn this financial year — meaning it was unlikely to replicate last year’s “bumper” fiscal third quarter. Ryanair added that it also faced higher environmental EU charges from January and delivery delays for new aircraft from Boeing. Ryanair carried 105.4m passengers between April and September, a record for the summer season.<br/>
https://portal.staralliance.com/cms/news/hot-topics/2023-11-07/unaligned/ryanair-plans-regular-dividend-for-first-time-as-it-forecasts-record-annual-profit
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Ryanair plans regular dividend for first time as it forecasts record annual profit
Ryanair forecast a record annual profit and outlined plans to pay a regular dividend for the first time as the airline cashed in on its busiest-ever summer and a rise in airfares. Europe’s largest airline by passenger numbers on Monday forecast a full-year net profit between E1.85b and E2.05b for its financial year ending in March, which would beat a record set in 2018. The airline became the latest to report booming profits over the summer as the industry rebounded from the impact of the Covid-19 pandemic thanks to strong demand for travel and high ticket prices. Rivals including British Airways owner IAG, easyJet and Air France-KLM have all reported record summer earnings in recent weeks. Ryanair underlined its recovery by announcing plans to pay shareholders a regular dividend for the first time, starting with E400m over the next year. It pledged to then return about 25% of the prior-year profit after tax to shareholders. The airline paid out more than €6bn to shareholders between 2008 and 2020, but only through buybacks or special dividends. CFO Neil Sorahan said the switch to regular payouts reflected the “maturity” of Ryanair’s business, following years of high capital spending before the pandemic as it built its dominant position in the European market. As carriers across Europe report record profits, the biggest question facing the industry is how long the boom times can continue, and whether demand for travel will remain strong into next year. Sorahan said Christmas looked “strong” and the airline was “pleased” with early sales for summer 2024. But Ryanair cautioned that its financial guidance was “highly dependent on the absence of any unforeseen adverse events, for example such as Ukraine or Gaza”. The airline said it faced a “significantly” higher fuel bill — up €1.3bn this financial year — meaning it was unlikely to replicate last year’s “bumper” fiscal third quarter. Ryanair added that it also faced higher environmental EU charges from January and delivery delays for new aircraft from Boeing. Ryanair carried 105.4m passengers between April and September, a record for the summer season.<br/>
