Friday 23 June 2017

Ryanair plans to pay €500m dividend

Steve Rothwell

Ryanair will pay its first ever dividend after reporting a full-year profit on declining fuel costs.

The net income in the 12 months through March 31 was €305m, compared with a net loss of €169m a year earlier, the budget airline said in a statement today.

Ryanair’s revenue increased by 2pc after the growth in passenger numbers outstripped the decline in average fares.

The carrier said it plans to pay investors a special dividend of €500m in October, its first payment to shareholders since the company sold stock in 1997, after deciding against expanding its fleet.

“It’s a one-time dividend,” Chief Financial Officer Howard Millar said in a phone interview today.

“It doesn’t look like we’re going to make a deal to buy planes in the near term so it was appropriate to return money to shareholders.”

The carrier’s sales were crimped at the start of this fiscal year after the eruption of Iceland’s Eyjafjallajökull volcano closed European airspace in April for six days in April, grounding 100,000 flights.

A second wave of ash in May closed terminals in Ireland and Scotland before spilling as far south as central Spain, the Canary Islands and Morocco.

Bloomberg

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