ALBAWABA – Ryanair profits are forecast to hit record highs in 2023 after fares soared 24 percent over the summer season, the company said on Monday, pledging to pay investors a regular dividend for the first time.
Ryanair profits after tax reached $2.4 billion in the six months through September, compared to $1.4 billion for the same period in 2022, a company statement carried by Agence France-Presse (AFP) said.
Ryanair said it expects an after-tax profit in the year through March to reach $1.99-2.20 billion, which is significantly higher than the $1.56 billion record of 2018, according to Reuters.
On Monday, Ryanair announced that net profits surged 72 percent in its first half thanks to higher fares and record traffic during the peak summer season.
Traffic grew 11 percent to 105 million passengers while average fares jumped by almost one quarter amid an overall rally in the sector around the world.
Ryanair profits hit new record as traffic surged on higher prices - Shutterstock
The aviation industry is enjoying a strong recovery after suffering heavy losses at the start of the decade when the Covid pandemic grounded flights worldwide.
For the first time, ordinary dividends of $429.98 million will be distributed on two instalments, with one interim payment of $214.99 million in February and another in September 2024, according to Reuters.
Moving forward, Ryanair plans to return approximately 25% of the after-tax profit posted the previous year by way of an ordinary dividend, the airline said.
The Irish airline has been increasing capacity far faster than most rivals to take advantage of the travel boom that followed COVID-era lockdowns.
Ryanair Holdings Plc is a multinational low-cost airline group headquartered in Dublin, Ireland. The company includes the subsidiaries Ryanair DAC Tooltip Designated activity company, Malta Air, Buzz, Lauda Europe and Ryanair UK. Ryanair DAC, the oldest airline of the group, was founded in 1984.
