Ryanair Holdings Plc, Europe's largest no-frills airline, on Tuesday swung to a full fiscal-year net profit, announcing its first dividend since it went public in 1997, as lower fuel costs and robust traffic growth assisted it return to an annual profit.

In the year ended March 31, Ryanair recorded its earnings to be 305.3 million euros ($371 million) compared to a loss of _169.2 million recorded the previous year. Excluding special items of _274.1 million, the airline's adjusted profit marked a more than tripled level touching _319 million from _105 million.

The airline's performance has outpaced the results from many of its European competitors including British Airways and Air France-KLM, which have faced large losses this year.

Chief Executive Michael O'Leary, outlined, "However, subject to no further air space closures and an early return to normal bookings, we expect airfares-which fell 13% last year-to rise by between 5% to 10% due to the positive impact of our new routes and bases".

The carrier hopes as a result of its expansion plans its capex will witness a marginal fall over the next three years and it should incur a _1 billion cash surplus by the end of fiscal 2013.

The Company's shares registered a climb 5.7% in morning trading on the London Stock Exchange.