Ryanair to reward shareholders after record profits
Ryanair has announced plans to pay more than £390 million in a special dividend to shareholders after reporting a 25% increase in profits.
The low cost carrier saw profits rise to 503 million euros from 401 million euros this time last year.
If approved at the AGM, the special dividend, due to be paid in November, could see chief executive Michael O’Leary bank nearly £14 million from his 3.55% stake, reports the Sunday Times.
Michael O’Leary said: "This 25% profit increase to a new record of €503m and 5% traffic growth during a year of higher oil prices, and deep recession in Europe was a commendable result. Our fuel bill rose over €360m as oil prices increased 16% from $73 to $85pbl."
The airline predicted more European airline failures in 2012 to follow Malev, Spanair and Cimber Sterling due to rising oil prices and the EU wide recession.
It added Ryanair has responded to this by opening a new base in Budapest, expanding bases in Spain, Scandinavia and provincial UK to maximise capacity and minimise airfares for local consumers/visitors.
The airline is predicting profits will be down in 2013 due to an increasing fuel bill together with the recession, currency concerns and lower fares at new and growing bases like Hungary, Poland, provincial UK and Spain.
With fuel costs only partially offset by increase in fares, the low cost carrier predicts profits of 400 to 440 million euros next year.
"These higher oil prices next winter and the refusal of some monopoly airports (most notably Dublin & Stansted) to lower winter charges makes it more logical to ground up to 80 aircraft rather than suffer losses flying at very low winter yields in FY13," a company statement said.
Diane
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