Dividend premiere for investors
Ryanair earns better than ever
November 6, 2023, 10:23 a.m
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Last year Ryanair narrowly missed its record profit, this year the time has come: the low-cost airline has announced the highest profit in the group’s history for the current financial year. Shareholders will receive a regular dividend for the first time.
Europe’s largest low-cost airline Ryanair is heading for record profits in the current financial year after a strong summer quarter. In the twelve months to the end of March 2024, the surplus is expected to reach 1.85 billion to 2.05 billion euros, the Irish company in Dublin said. The Irish achieved their highest profit to date in 2018 with 1.45 billion euros; last year they narrowly missed this mark with a profit of 1.3 billion euros.
For the first time, shareholders can now receive a regular dividend. For the current financial year until the end of March, a total of 400 million euros will flow to shareholders in two equal tranches: an interim dividend of 200 million euros is planned for February 2024, and in September shareholders should also receive a final dividend of 200 million euros or 35 cents each receive share. In the following years, Ryanair wants to pay out 25 percent of the previous year’s profit, adjusted for special effects, as a dividend.
So far, the company has occasionally paid a special dividend. This practice is still an option, as are share buybacks, it is said. “The board will retain the flexibility to return excess cash to shareholders via special dividends and/or share buybacks when appropriate,” the company said.
Is Boeing delivering as promised?
In the second financial quarter from July to September, Ryanair increased sales by 23 percent year-on-year to 4.9 billion euros thanks to stronger demand and higher ticket prices. The number of passengers rose by 11 percent and ticket prices rose by 14 percent. The bottom line is that Ryanair’s profits rose by more than 40 percent to 1.5 billion euros. Adjusted for a special charge from the previous year, the increase amounted to 26 percent.
Ryanair continues to expect passenger traffic of 183.5 million in the current financial year. But this also depends on whether Boeing can keep its delivery commitments for the new jets.