Ryanair warns that profit to be dented by Eurozone
Ryanair, Europe’s biggest budget airline, warned surging fuel costs and a worsening economic outlook meant profit would slip by up to 20 per cent in the coming year, the first fall in four years.
The Dublin-based airline, which posted a record annual profit and has posted profit growth of at least 25 per cent every year since 2009, confirmed it would pay out £388m to shareholders in just its second dividend payout since floating in 1997.
Net profit reached 503m euros for the year to March, up 25 per cent on the previous year, compared with a forecast of 491 million by analysts.
But it warned worsening economic conditions in Europe and stubbornly high fuel costs would cut its profit to between 400m and 440m euros in 2013, making it the first year since 2009 that profit has fallen.
“Recession, austerity, currency concerns and lower fares at new and growing bases … will make it difficult to repeat this year’s record results,” chief executive Michael O’Leary said in a statement.
“Any increase in fares will only partially offset higher fuel costs.”