Ryanair has said it will buy back up to €800m more of its shares over the next six to nine months due to a stronger than expected cash position, driven partly by the delayed delivery of new Boeing aircraft.
The airline, Europe's largest by passenger numbers, announced a 700-million-euro share buyback in May, its first since the COVID-19 crisis and said today that would be completed by the end of August.
Ryanair said that while airfares had softened more than expected recently, it decided on the follow-on buyback after a boost to cashflow from strong traffic growth and the delivery delays which "considerably delayed planned capital expenditure."
Ryanair shares spiked higher after the announcement and finished the day up 4.4%.
Ryanair said last month that Boeing had warned it that some 737 MAX deliveries due by next spring would be delayed until the peak summer months of 2025 – a repeat of delays this year that forced a cut in its summer traffic volumes.
Ryanair also said today that its board will seek shareholder approvals at its AGM in September to increase its annual buyback authority from 10% of issued share capital, to up to 15%.
With no new aircraft deliveries scheduled from mid-2025 to mid-2027, Ryanair said it expects cashflow to receive a short term boost and create the capacity to extend shareholder returns.
Deliveries are due to increase sharply again from late 2027.
