Ryanair Reports 59% Rise in Net Profit and Declares First-Time Dividend

Ryanair Holdings, the budget airline, has announced a significant increase in net profit for the first half of fiscal 2024. After experiencing a successful summer season, the company reported a 59% rise in net profit, leading to a boost in its share price. As a result, other European airlines also saw an increase in their share prices.

Financial Performance

Ryanair's shares saw a rise of 6.1% to EUR16.13 during early trade on Monday. Similarly, EasyJet observed a 3.35% increase, reaching 404.30 pence, while Wizz Air observed a 2.3% rise, reaching 1,868 pence. International Consolidated Airlines experienced a 1% increase at 151.95 pence, Air France-KLM saw a 2% rise to EUR12.00, and Lufthansa observed a modest 0.2% increase, reaching EUR7.55.

Record-breaking Results

Ryanair reported a net profit of EUR2.18 billion for the half-year ended September 30, compared to EUR1.37 billion in the previous year. This growth can be attributed to an 11% increase in passenger traffic, totaling 105.4 million passengers. The strong Easter period and high demand during the summer contributed significantly to this achievement.

Additionally, average fares during this period rose by 24% to approximately EUR58, with ancillary revenue per passenger increasing by 14% to EUR23.70.

Future Outlook

For the upcoming year, Ryanair has projected a net profit in the range of EUR1.85 billion to EUR2.05 billion, under the assumption of minimal losses during the winter period. The company aims to report a passenger growth of 9% this year, reaching a total of 183.5 million passengers. However, this target is contingent upon Boeing meeting aircraft delivery targets since there have been continued delays with fuselage supplier Spirit.

Ryanair is actively collaborating with Boeing to minimize these delays before the peak holiday season. Nevertheless, it is expected that up to 10 out of the 57 contracted deliveries planned for this winter season might be delayed until the following winter.

First-Time Dividend

Excitingly, Ryanair has declared a dividend of 35 European cents per share for this year. The interim payout is scheduled for February, with a final dividend in September. Going forward, the board intends to declare a dividend equivalent to 25% of the previous year's net profit annually.

These positive developments showcase Ryanair's strong performance and commitment to providing value to its shareholders.