Low-cost airline Ryanair has reported the largest annual profit in the company's history, thanks to a significant increase in passenger traffic and revenue, which offset a sharp rise in operating expenses.

According to CNBC, the Dublin-based company reported a net profit of €1.92 billion ($2.09 billion) for the year ended March 2024. This is a 34% year-on-year increase. The airline's revenue increased by 25% year-on-year, reaching 13.44 billion euros.

Ryanair carried 184 million passengers, which is 23% more than before the COVID-19 pandemic. The increase in the number of passengers carried and the increase in fares helped the company to withstand a significant increase in costs. Operating expenses grew by 24% year-on-year, while jet fuel costs increased by 32%.

The company also announced a €700 million share buyback program. CFO Neil Sorahan said this reflects the company's "very strong" financial balance sheet.

"Our priorities were very important: to restore pay to our employees after COVID-19, to provide wage increases, to pay down debt," Sorahan said in an interview with CNBC's Squawk Box Europe.

Ryanair has repaid the bonds, and at the end of last year, the company had €1.4 billion in cash. That's why the board of directors is now confident that, in addition to the usual dividend program, the company will be able to return €700 million to shareholders.

This record profit confirms that the company's strategy of expanding markets and improving efficiency is paying off. The company plans to continue investing in its development to maintain its leading position in the low-cost airline market.