Ryanair’s net profitable soars in FY2011; proposes first ever dividend
Revenues increased 2% to EUR3.0 billion in the 12 months as a 13% decline in average fares was offset by a 14% increase in passenger traffic to 66.5 million. The carrier strengthened its balance sheet by EUR535 million to EUR2.8 billion in the period.
Looking forward, the carrier expects to grow traffic by 11% in FY2011 to 73.5 million, with average fares expected to increase by 5%-10% and profitability to increase in the 10%-15% range, to approximately EUR350-375 million.
Also in Europe, shares in Dart Group, parent of Jet2.com, gained 4.9%, with easyJet gaining 2.9% and Air Berlin 2.0%.
At the other end of the spectrum, shares in Vueling declined 2.9%, as CEO, Alex Cruz, outlined details of the carrier's "New Sustainability Model". The plan involves improving the carrier's product to compete with legacy carriers while at the same time keeping additional costs to an absolute minimum. The CEO estimated the carrier would handle an additional 1 million passengers by 2011, with approximately a third passengers are expected to be international travellers visiting Spain.
Selected LCCs daily share price movements (% change): 01-Jun-2010
