DUBLIN (Reuters) – Irish airline Ryanair will bring forward to October its first dividend since flotation in 1997 as it swung back to a full-year profit ahead of most rivals and expects earnings to grow further this year.

Europe's biggest low-cost carrier had previously said it could end its no-dividend policy around 2013, when it would scale back growth, though some analysts had suspected that was to put pressure on Boeing over aircraft order talks.

The prospect of the cash payout, rising profits and a cap on costs caused by volcanic ash from Iceland helped boost its shares 3.8 percent by lunchtime yesterday to 3.516 euros, one of the top gainers on a falling European FTSEurofirst 300 index.

"People often listen to what Ryanair says and say this is just palaver or putting it on," Deputy Chief Executive Michael Cawley told Reuters.