Ryanair Projects Record Annual Profit and Initiates Regular Dividend Payouts
Ryanair, Europe’s largest airline by passenger numbers, has announced its optimistic outlook for the year, forecasting a record annual profit and unveiling plans to initiate regular dividend payments to its investors. The surge in fares during the summer season, up by an impressive 24%, has fueled this positive outlook for the airline.
Record-Breaking Profit Projection
Ryanair expects an after-tax profit of 1.85 billion to 2.05 billion euros for the fiscal year ending in March. This forecast easily surpasses its record of 1.45 billion euros achieved in 2018. Notably, the low-cost aviation pioneer reported a substantial profit of 2.18 billion euros for the first half of its financial year, which concludes at the end of September. This remarkable figure represents a 59% increase from the previous record set in the same period last year.
Rapid Capacity Expansion
Ryanair’s robust performance can be attributed to its rapid capacity expansion, which outpaces most of its competitors. This approach has allowed the airline to capitalize on the surge in travel demand following the easing of COVID-era lockdowns. In this period, Ryanair flew a total of 105 million passengers, marking an 11% increase from the previous year.
Inaugural Ordinary Dividend and Future Plans
In a significant development, Ryanair is introducing an ordinary dividend policy. A maiden ordinary dividend of 400 million euros will be disbursed, with an interim payment of 200 million euros in February and a final 200 million euros scheduled for September next year. For the following financial years, Ryanair plans to allocate approximately 25% of the after-tax profit of the preceding year as an ordinary dividend.
Positive Outlook and Concerns
Ryanair’s Chief Financial Officer, Neil Sorahan, expressed confidence in the company’s outlook. He mentioned that the third quarter is looking promising, with fares showing a “mid-teens” percent margin ahead of last year. However, the airline has limited visibility into the final quarter until March 31. Despite this uncertainty, the easing inflation in Europe is considered a positive sign for consumer spending.
Sorahan also addressed concerns about potential delays in the delivery of Boeing 737 MAX aircraft, indicating that the situation is improving with ongoing discussions with Boeing. While some delays may occur, the company is working to mitigate these challenges.This significant development marks a positive milestone for Ryanair as it continues to thrive and provide returns to its investors while navigating the complexities of the aviation industry.
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Shahnawaz Alam
Shahnawaz is a passionate and professional Content writer. He loves to read, write, draw and share his knowledge in different niches like Technology, Cryptocurrency, Travel,Social Media, Social Media Marketing, and Healthcare.
