Ryanair to pay out first dividend with Michael O'Leary pocketing 20m
Ryanair today said it would pay its first dividend since it floated on the stock market in 1997 as it announced that profits trebled over the past year.
The budget airline's chief executive, Michael O'Leary, said: "This is a one off dividend based on the fact that we cancelled discussions with Boeing on 200 new aircraft and that means our capital spending will fall substantially over the next three years."
The dividend will be worth 34 cents a share and cost 500 million (£421.8 million). O'Leary's sizeable shareholding means he will receive 20 million, but he complained that he would not feel its full benefit: "The Irish government will take 12 million of that back from me straight away. Welcome to Ireland."
Ryanair upped its profit guidance last month after profits tax profits would be at least 310 million (£261.5 million) after a flurry of late bookings and the fall in the cost of fuel as the oil price dropped. Profits came in at 319 million, up from 105 million a year ago.
Today O'Leary said he expected fares, which fell an average of 13% last year, to rise by between 5% and 10% in the coming year as more mainstream routes such as Malaga and Faro are used.
He said: "Some of Europe's major airports have seen a massive decline in passenger numbers. That means they now need our business and are prepared to do so on decent terms."
O'Leary also said the volcanic ash cloud which "lead to repeated, unnecessary, closures of large swathes of European airspace over 18 days" had cost the airline 50 million.
He announced that he will take governments to court to try to recover costs but is not confident of success. More immediately he wants laws changed so airlines, like ferries and coaches, do not have to pay customers more in compensation than they spent on their tickets.
"It is ludicrous that when travel insurers do not pay out because it's an act of God we can be forced to pay people a grand or two to have an extra week's holiday," he said.
