DUBLIN - Ryanair, Europe's biggest budget airline, posted a record annual profit on May 21 but warned surging fuel costs and worsening economic outlook in Europe meant profits were likely to fall in the coming year for the first time since 2009.
The Dublin-based airline also confirmed it would pay out 483 million euros ($614.5 million) to shareholders in just its second dividend payout since floating in 1997.
Ryanair posted a net profit of 503 million euros for the year to March compared with a forecast of 491 million by analysts polled by Thomson Reuters I/B/E/S.
But it warned worsening economic conditions in Europe and stubbornly high fuel costs would cut its profit to between 400 million and 440 million euros in the 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," CEO Michael O’Leary said in a statement.
The airline, which has a lower cost base than many of its competitors, has raised fares in recent months to make up for more expensive fuel and reduced capacity.
But it warned it would be unable to pass on all of the higher fuel costs in the coming year.
