Ryanair hints at 'modest regular dividend' policy at investor day

Published date06 September 2023
AuthorJoe Brennan
Publication titleIrish Times: Web Edition Articles (Dublin, Ireland)
The airline also highlighted how it has ample growth opportunities over the next decade as it increases its fleet from 558 planes to 800, which is forecast to see the number of passengers it carries annually double from 150 million a year before the pandemic to 300 million by 2034

Ryanair has yet to lay out a clear future dividend policy as its debt reduces in the coming years.

AllianceBernstein analyst Alex Irving said in a report on Wednesday, however, on Ryanair's capital markets day that "management indicated returns skewed towards a 'modest regular dividend', likely tied to a payout ratio, but supported by buy-backs and special dividends in times of excess liquidity".

Mr Irving said the case for payouts "will be undeniable in 2025" when Ryanair enters a one to two year period of no aircraft deliveries and its capital expenditure slumps.

Ryanair announced in May that it will buy up to 300 Boeing 737 Max 10 aircraft, the largest model made by the aircraft manufacture in that range. The size of the deal – priced at more than $40 billion (€37.3 billion) based on the jets' listed price but estimated to have been agreed at a deep discount – means it is subject to shareholder approval at its annual general meeting on September 14th.

The airline highlighted at its capital markets day that the order makes the carrier one of the few that can deliver meaningful growth to airports in Europe and that cashflows over the next few years will...

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