Ryanair forecasts record results for the fiscal year

11/6/2023, 11:27 AM

In the face of strong demand and increased ticket prices, Ryanair is navigating towards a record profit.

The rising demand and higher ticket prices allow Europe's largest budget airline Ryanair to look positively towards the future. For the current fiscal year, the company expects a profit between 1.85 and 2.05 billion euros. This would mean a new record profit, after narrowly missing the previous highest mark of 1.45 billion euros last year. Shareholders can also look forward to a regular dividend of a total of 400 million euros for the first time. In the future, Ryanair plans to distribute a quarter of the profit after taxes to the shareholders. Up until now, only occasional special dividends have been paid.

During the summer season from April to September, Ryanair proudly welcomed 105 million passengers, representing an increase of eleven percent compared to the same period last year. Average ticket prices also rose by 24 percent compared to the previous year. For the first half of the current fiscal year, the company has already posted a profit of 2.18 billion euros, representing an increase of 59 percent compared to the same period last year.

The US bank JPMorgan has kept the rating for Ryanair at "Overweight" and set a price target of 24.60 euros. According to analyst Harry Gowers, the company slightly exceeded expectations. The current signals suggest that market concerns for the winter may be somewhat alleviated. On the EURONEXT in Dublin, Ryanair's stock initially rose by up to 6.25 percent to 16.15 euros.

Thanks to high demand and increased ticket prices, Ryanair can expect a record profit in the current fiscal year. For the first time, shareholders can look forward to a regular dividend and both passenger numbers and profits have risen compared to the same period last year. Experts remain optimistic and Ryanair's stock saw a significant rise in the stock market.

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