Ryanair returns to net profitability in FY2011; proposes first ever dividend

Ryanair returned to profitability in the 12 months ended Mar-2010 (FY2010), with a net profit of USD305 million, exceeding its forecast of EUR275 million and resulting in a 7 ppt net margin improvement to 11%. Operating profits, meanwhile, increased 334% to EUR402 million, resulting in an 8 ppt improvement in operating margin to 13%. Ryanair last year posted its first loss in 20 years after writing down the value of its stake in its former takeover target, Aer Lingus. [1901 words]

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This report contains the following subheadings:

• Net profit to rise 10-15% in 2011
• Relentless cost discipline bears results; fuel cost reductions also a help
• Revenues up only marginally; pax increase by 14%; fares down 13%
• Ancillaries up by 11% but showing signs of stabilisation; Revenue per passenger down 11%
• The strongest balance sheet in Europe; aircraft purchases benefit from low interest and low Euro
• Proposes EUR500 million dividend  
• Economies of scale – 42 bases, 1,110+ routes and 247 aircraft, while others cut back
• Profits, yields and pax expected to grow in FY2011
• End of an era – Ryanair model shifting, to Continental Europe

This report contains the following charts and tables:

• Ryanair operating profit margin and net profit margin: FY06 to FY2010
• Ryanair financial highlights for 12 months ended Mar-2010
• Ryanair operating expense breakdown
• Ryanair fuel hedges for FY2010 and FY2011: as at Jun-2010
• Ryanair revenue growth and pax numbers growth: FY2005 to FY2010
• Ryanair passenger numbers (millions) and passenger load factor (%): FY2005 to FY2010
• Ryanair fleet plans: FY2007 to FY2013
• Ryanair passenger numbers and passenger growth: FY2007 to FY2013F