Ryanair Expands Share Buyback Plans Amid Cash Increase from Delivery Delays, Reports Reuters

Ryanair announced on Thursday plans to repurchase up to 800 million euros (approximately $872.48 million) worth of its shares over the next six to nine months, attributing this decision to a stronger-than-expected cash position. This cash surplus has been enhanced, in part, by delays in the delivery of new Boeing aircraft.

As Europe’s largest airline by passenger numbers, Ryanair had previously disclosed a 700-million-euro share buyback in May, marking its first repurchase initiative since the onset of the COVID-19 pandemic. The airline confirmed that this buyback would be finalized by the end of August.

Despite a more significant than anticipated decline in airfares recently, Ryanair opted to pursue the additional buyback owing to robust cash flow stemming from substantial traffic growth and the postponement of planned capital expenditures due to the aircraft delivery delays.

Following the announcement, Ryanair’s stock rose sharply, closing the day with a 4.4% increase.

The airline also noted that Boeing had informed them that some 737 MAX deliveries scheduled for the upcoming spring would be postponed until the peak summer months of 2025. This situation echoes previous delays that impacted Ryanair’s summer traffic volumes this year.

Additionally, Ryanair’s board stated they would seek shareholder approval during their Annual General Meeting in September to increase the annual buyback limit from 10% to up to 15% of the issued share capital.

With no new aircraft deliveries expected from mid-2025 to mid-2027, Ryanair anticipates a temporary boost in cash flow, allowing for increased shareholder returns, with a significant uptick in deliveries expected to resume by late 2027.