Skift Take

The airline is bullish on record profits, thanks to a busy summer for travelers.

Ryanair on Monday forecast a record annual profit and promised to pay investors a regular dividend for the first time after fares soared 24% during its key summer season.

Europe’s largest airline by passenger numbers said it expects an after-tax profit of between 1.85 billion and 2.05 billion euros ($ 1.9 billion to $2.2 billion) for the year to end-March, easily beating its previous record of 1.45 billion euros ($1.55 billion) in 2018.

The low-cost pioneer earned 2.18 billion euros ($2.34 billion) 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.

Traffic in the period was up 11% to 105 million passengers while fares were 24% higher than last year, the airline said in a statement.

The airline announced its maiden ordinary dividend of 400 million euros ($430 million), split between an interim payment of 200 million euros ($215 million) in February and a final dividend of 200 million euros in September 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 dividend, the airline said.

(Writing by Conor Humphries; Editing by Simon Cameron-Moore)

This article was from Reuters and was legally licensed through the DiveMarketplace by Industry Dive. Please direct all licensing questions to [email protected].

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Tags: airline earnings, earnings, europe, low-cost carriers, ryanair

Photo credit: Ryanair flight preparing for landing at Manchester. Source: Reuters

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