Ryanair, the prominent Irish low-cost airline, has announced a robust performance during the first half of fiscal year 2024. The airline’s passenger traffic soared by 11%, surpassing 105.4 million passengers. This substantial growth has significantly bolstered the airline’s net profit, surging from EUR 1.37 billion to an impressive EUR 2.18 billion. Additionally, Ryanair’s revenue experienced a substantial uptick, ascending from EUR 6.62 billion to EUR 8.58 billion.
As the airline charts its course for the future, Ryanair has unveiled its intention to distribute interim and final dividends, with a total payout of EUR 400 million ($429.3 million) in 2024. This distribution plan includes EUR 200 million dividends scheduled for both February and September 2024. It’s worth noting that these dividends are contingent upon Boeing’s (NYSE: BA) fulfillment of delivery commitments and the prevailing geopolitical stability in Ukraine and Gaza.
Furthermore, Ryanair’s board is actively exploring the possibility of returning excess cash to shareholders through special dividends or share buybacks, subject to the absence of unforeseen events.
For the full fiscal year, Ryanair has set its passenger traffic guidance at an impressive 183.5 million passengers. The company’s forecast for pre-exceptional profit after tax ranges between EUR 1.85 billion and EUR 2.05 billion.
Key Insights from InvestingPro
Considering Ryanair’s recent financial performance, InvestingPro offers valuable insights. The airline maintains a healthier cash balance compared to its outstanding debt and has consistently improved its earnings per share, aligning with the notable increase in net profit and revenue.
Market analysts anticipate sales growth for the current year, in line with Ryanair’s traffic guidance of 183.5 million passengers. Notably, the airline is trading at a modest earnings multiple of 10.28, which is expected to decrease to 9.27 by the first quarter of 2024, according to InvestingPro data (P/E Ratio and P/E Ratio Adjusted LTM2024.Q1).
