Ryanair shares climb after record annual profit forecast
Ryanair shares rose above 6% on Monday after the airline said it expects a record annual profit after fares soared this summer.
The company posted after tax profit of €2.18 billion, 59% ahead of its previous record for the period set last year, and better than the €2.15bn anticipated by the market. Traffic in the period was up 11% to 105 million passengers while fares were 24% higher than last year. Ryanair now expects an after-tax profit of between €1.85bn and €2.05bn the year to end-March. IGTV’s Angela Barnes has this round-up.
(AI Video Transcript)
Ryanair
Ryanair, has announced that it is expecting to make a record profit this year. This is because ticket prices over the summer were higher than usual, leading to bigger profits for the airline. Ryanair has reported a profit of 2.18 billion euros, which is 59% higher than last year's profit during the same time period. This is even better than what the market experts predicted, as they thought the profit would be around 2.15 billion euros.
Not only did Ryanair see a boost in profit, but they also had more passengers, with an 11% increase in traffic and a total of 105 million passengers served. This is great news for investors, as the stock price rose by 5.95% after the announcement. In fact, Ryanair's stock has seen a year-to-date increase of about 32%. This positive news has also had an impact on other airline stocks, causing their prices to rise as well.
Ryanair's financial performance
Ryanair's success doesn't stop at financial gains. The company has also announced that it will be paying dividends to its shareholders, totaling 400 million euros. An interim payment of 200 million euros will be made in February, followed by a final dividend of the same amount in September next year. Going forward, Ryanair plans to return around 25% of its after-tax profit from the previous year to shareholders in the form of ordinary dividends. This is good news for investors who can expect to receive some money back for their investment.
Overall, Ryanair's impressive financial performance and record-breaking profits have been well-received by investors. The airline continues to see growth in passenger numbers and higher ticket prices, which indicates a positive future for profitability. This news not only benefits Ryanair, but it also has a positive effect on other airlines' stocks. So, if you're thinking about investing in airlines, now might be a good time to consider Ryanair and other similar companies.
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