Ryanair Shares Surged 12.5% on Record Profits, Maiden Dividend

The Ryanair share price surged 12.5% after announcing that it had generated a robust half-year profit of €2.18 billion (£1.89 billion), representing a noteworthy increase compared to last year's first-half profit after tax (PAT) of €1.37 billion.

The company benefited from a robust performance in the first quarter, primarily driven by a robust Easter period. Ryanair experienced record-breaking summer traffic during the reporting period, contributing significantly to its increased profitability.

Another crucial factor behind the solid financial results was an uptick in average fares, which boosted the company's revenue. These positive developments helped offset the considerable rise in fuel costs that the airline faced during the first half of the year. 

The airline experienced an impressive 11% growth in passenger traffic, reaching 105.4 million passengers with an outstanding 95% load factor. The company achieved a remarkable 17% increase in revenue per passenger. This growth can be attributed to a 24% rise in average fares and a 3% increase in ancillary revenue.

In the upcoming season, the airline is set to expand its operations with the addition of three new bases and the introduction of an impressive 194 new routes for the summer of 2024. The airline strengthened its fleet by adding 124 state-of-the-art Boeing 737 “Gamechanger” aircraft, resulting in a total fleet size of 563 aircraft as of September 30th.

As Europe’s largest discount airline, with its headquarters in Dublin, Ireland, Ryanair announced a maiden dividend of €400 million (£347 million), accompanied by a dividend policy that outlines its commitment to returning value to its shareholders.

The airline noted that fuel expenses increased by €0.6 billion, representing a 29% rise, bringing its total fuel bill to €2.8 billion. The company extended its fuel hedging strategy, securing approximately 85% of its expected fuel costs for the fiscal year 2024 at $89 per barrel. 

The company reported a net cash position of €0.84 billion, a significant increase from the €0.56 billion reported as of March 31st. Additionally, over €1 billion in debt has been repaid. 

The airline has placed a substantial order for 300 Boeing MAX-10 aircraft, which will play a pivotal role in realising its ambitious growth plans, aiming to serve 300 million passengers annually by the fiscal year 2034.

Ryanair share price. 

The Ryanair share price surged 12.45% higher to trade at 1456.25p from Friday’s closing price of 1295.00p.