Thomas Lyons 
Ryanair has announced a significant profit increase for its latest financial year, with the airline set to achieve record profits in the coming year. The rise in profits is due to high demand over the peak summer months, more flights, and higher airfares, which have helped offset a €1bn uplift in fuel costs. The airline reported €1.43bn in after-tax profits for the 12 months to the end of March, and predicts a 10% increase in passenger numbers to 185 million for the 2024 financial year, which is also likely to see a double-digit increase in profits.
Ryanair CEO Michael O’Leary has suggested that the company may consider restarting dividend payments for the first time since 2015 if the airline has another strong year and significant net cash balances. The rebound in profits also means that Mr O’Leary is back on track to receive a potential bonus of almost €100m in the coming years. Under the terms of a revised contract following the pandemic, the CEO will be granted the option of buying 10 million shares at €11.12 each, if the airline by summer 2028 posts €2.2bn in annual after-tax profits, or the share price trades at €21 for 28 days.
Ryanair shares closed 1.3% higher at €15.85 in the latest session, having climbed almost 30% since the start of the year. The airline has previously stated that pay for Mr O’Leary and other executives was built around “a relatively low basic salary” but was also based on bonus-pay incentives. Ryanair revealed it held €560m in cash at the end of March and anticipated paying an additional €1bn this financial year for fuel. Spring fares were “significantly higher”, and summer peak fares were “trending ahead of last year” amid “robust” demand, according to the airline.
Goodbody analyst Mark Simpson said the results marked the start of the company building a “platform” that would allow it to pay cash for the huge spend entailed in buying 300 fuel-efficient Boeing Max-10 planes, including firm orders and options, for delivery from early 2027 to 2033. “While management is being reasonably cautious about the FY24 performance, there is no doubt that the platform building for an extended period of significant market share wins over the next decade is advancing this year,” Mr Simpson said. Goodbody anticipates fares for the full 2024 financial year will be 12.5% higher than the previous year, with peak summer fares up by 10.2%.
Ryanair’s latest financial results have shown that the airline is set to achieve record profits this year, despite the anticipated €1bn increase in fuel costs. The company’s CEO, Michael O’Leary, has suggested that the company may consider restarting dividend payments for the first time since 2015 if the airline has another strong year and significant net cash balances. Ryanair’s shares have risen almost 30% since the start of the year, and the airline revealed it held €560m in cash at the end of March.
The airline has also announced plans to buy 300 fuel-efficient Boeing Max-10 planes, including firm orders and options, for delivery from early 2027 to 2033. Goodbody analyst Mark Simpson said the results marked the start of the company building a “platform” that would allow it to pay cash for the huge spend entailed in this purchase. While the airline is being cautious about its performance in the 2024 financial year, there is no doubt that the platform being built this year will allow for significant market share wins over the next decade. Goodbody anticipates fares for the full 2024 financial year will be 12.5% higher than the previous year, with peak summer fares up by 10.2%.
