Ryanair (LON:0RYA), the Irish low-cost airline, has reported a significant upturn in its H1 fiscal 2024 performance. The airline's traffic grew by 11%, reaching 105.4 million passengers, which has contributed to an increase in net profit from EUR1.37 billion to EUR2.18 billion. Revenue also saw a surge, rising from EUR6.62 billion to EUR8.58 billion.
Looking ahead, Ryanair has announced plans to distribute an interim and final dividend of EUR200 million each in February and September 2024, amounting to a total of EUR400 million ($429.3 million). These dividends are conditional on Boeing (NYSE:BA)'s delivery commitments and geopolitical stability in Ukraine and Gaza.
In addition to these dividends, the airline's board is considering returning surplus cash through special dividends or share buybacks, provided there are no unforeseen events.
For the full year, Ryanair's traffic guidance stands at 183.5 million passengers. The company also forecasts a pre-exceptional profit after tax between EUR1.85 billion and EUR2.05 billion.
InvestingPro Insights
In light of the recent financial performance of Ryanair, InvestingPro provides some key insights. The company holds more cash than debt on its balance sheet and has been consistently increasing its earnings per share, which aligns with the reported surge in net profit and revenue.
Moreover, analysts anticipate sales growth in the current year, which is reflected in Ryanair's traffic guidance of 183.5 million passengers. The airline is trading at a low earnings multiple of 10.28, and this is expected to decrease to 9.27 by Q1 2024 (InvestingPro Data: P/E Ratio and P/E Ratio Adjusted LTM2024.Q1).
Finally, the company does not pay a dividend to shareholders (InvestingPro Tip 9), which is interesting considering the recent announcement of potential dividends and share buybacks. For more comprehensive insights and tips, consider the InvestingPro product, which offers an extensive list of additional tips related to Ryanair and other companies.
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