Ryanair announced on Thursday that it plans to repurchase up to 800 million euros ($872.48 million) of its shares within the next six to nine months, reflecting a stronger-than-anticipated cash position, partly attributed to the delayed delivery of new Boeing aircraft. The Irish airline, which is the largest in Europe in terms of passenger numbers, had previously disclosed a 700-million-euro share buyback in May, marking its first since the COVID-19 crisis, and confirmed that this initiative would conclude by the end of August.
Ryanair noted that although airfares have recently decreased more than expected, the decision to proceed with an additional buyback was influenced by a surge in cash flow resulting from robust traffic growth and the aforementioned delivery delays, which significantly postponed planned capital expenditures. Following the announcement, Ryanair's shares experienced a significant increase, closing the day 4.4% higher.
In a recent update, Ryanair revealed that Boeing had informed them of delays in the delivery of some 737 MAX aircraft, originally scheduled for next spring, which are now expected to arrive during the peak summer months of 2025. This mirrors the delays experienced this year, which led to a reduction in summer traffic volumes. Additionally, Ryanair announced that its board intends to seek shareholder approval at the upcoming AGM in September to raise its annual buyback authority from 10% to up to 15% of issued share capital.
With no new aircraft deliveries anticipated from mid-2025 to mid-2027, Ryanair anticipates a short-term boost to cash flow, enabling the extension of shareholder returns. However, deliveries are projected to significantly ramp up again starting from late 2027.
